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PRESS RELEASE

Report Finds Indonesia Keeps Improving its Business Environment, but More Can be Achieved

October 24, 2012




Jakarta, Indonesia, October 23, 2012—A new IFC and World Bank report finds that in the year from June 2011 to June 2012 Indonesia improved its regulatory environment through a reform making it easier for local entrepreneurs to obtain an electricity connection.

Released today, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises finds that since 2005, Indonesia has implemented a total of 18 institutional or regulatory reforms in nine of 10 areas of business regulation as measured by the annual Doing business report. In the most recent reform recorded, the utility PT PLN simplified the application process for an electricity connection by eliminating the requirement to bring in a copy of a neighbor’s bill to help determine the exact address of the new customer’s business.

The report, which covers 185 economies globally, finds that 11 of 24 economies in East Asia and the Pacific improved business regulations in the past year. Singapore tops the global ranking on the ease of doing business for the seventh year straight. Hong Kong SAR, China, holds onto the second spot.

This year’s report also features a case study that explores reform efforts by members of Asia-Pacific Economic Cooperation (APEC) using the Doing Business framework. Indonesia is among the APEC members working within this framework to make it easier to start a business and to improve its system for enforcing contracts. 

“Indonesia has made some improvements over the last 8 years, and it still strives to further strengthen the predictability and clarity of its regulatory framework” said Stefan Koeberle, World Bank Country Director for Indonesia.  “However, the pace of change has slowed since significant improvements were made between 2005 and 2009.  Strengthening the investment climate for small and medium-size businesses would require sustained efforts in improving infrastructure, tax administration, and the availability of credit.”

The report’s global annual ranking on the ease of doing business shows that the 10 economies with the most business-friendly regulation are, in this order, Singapore; Hong Kong SAR, China; New Zealand; the United States; Denmark; Norway; the United Kingdom; the Republic of Korea; Georgia; and Australia.

 

About the Doing Business report series

Doing Business analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and protecting investors. The aggregate ease of doing business rankings are based on 10 indicators and cover 185 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 10th edition of the global Doing Business report series. For more information about the Doing Business report series, please visit www.doingbusiness.org. Join us on Facebook.

 

About the World Bank Group

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

World Bank classification of countries and regions:

http://data.worldbank.org/about/country-classifications/country-and-lending-groups 

Media Contacts
In Jakarta
Dini Djalal
ddjalal@worldbank.org
In IFC Jakarta
Novita Wund
Tel : (+62) 8118400438
NWund@ifc.org
In Washington
Hannfried von Hindenburg
Tel : +852 2509-8115
hvonhindenburg@ifc.org


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