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The Opinion on The Most Talked Omnibus Bill Draft that has Just Been Submitted to The House of Representative Recently

Author: Yonatan Hermanto, Thu, Mar 26th 2020, 15:07

Yonatan Hermanto, of counsel at Armila & Rako is actively involved in the Omnibus Law drafting committee. Below is his opinion on the most talked Omnibus bill draft that has just been submitted to the House of Representative recently.

Indonesia under President Jokowi aims and maintains to improve its economic growth and the rating in World Bank’s Ease of Doing Business. Indonesia’s rank has currently remained in number 73 among 190 economies in 2020 survey. Complicated bureaucracy is the main reason Indonesia has not been able to jump to higher rank since last year’s survey. In order to make Indonesia more interesting to investors, the government has been making changes to ease the bureaucracy. Starting with the application of Online Single Submission, a digital system for business license and permit registration which simplifies the process of obtaining some licenses and permits quite significantly. However, in order to make bureaucracy efficient, changes must be done across sectors and between government departments.

The omnibus bill which is hoped to accommodate the interest of all stakeholders, will resolve conflicting rules – a hurdle that most  businesses experience in Indonesia; and eventually will streamline the licensing process in almost all strategic business sectors.

As the draft bill has finally been submitted last week, we are hoping that the country will be more attractive to investors and the goal of 6% economic growth will be achieved.