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MIERTA CAPAULProduct Leader
Investment Climate Advisory Services The World Bank Group
JakartaDecember 15, 2009
www.doingbusiness.org/Indonesia
Doing Business – Overview
Doing Business measures the regulations applying to domestic small and medium-size companies through their life cycle
10 indicators in 183 countries
The objective: well-designed, streamlined regulations, accessible to all
Doing Business 2010 is the 7th report
Asia is reforming
Indonesia, represented by Jakarta, is Asia’s most active reformer of business regulations in 2008/09
Reforms introduced in 3 areas improved the country’s ranking by 7 places
Ranking on the ease of doing business 2010
Subnational Doing Business
Expands the DB indicators beyond the most populous
city
Captures local differences in regulations or enforcement
Includes rules and regulations at all levels of
government
Gives specific locations an opportunity to tell their story
Provides a tool for locations to compete globally
Provides information on good practices within the same
country that can be easily replicated
Combines media appeal of DB with active participation
of subnational governments in the reform process
Doing Business in Indonesia 2010
Measures an entrepreneur’s every step and the associated time and cost; studies national and local regulations in 3 areas:
Starting a business
Dealing with construction permits
Registering property
Data were collected with the help of more than 160 private sector contributors and public
sector officials
Doing Business in Indonesia 2010 covers 14 cities
Balikpapan Banda Aceh BandungDenpasar JakartaMakassar Manado Palangka Raya Palembang Pekanbaru Semarang Surabaya Surakarta Yogyakarta
o Surakarta
Yogyakarta and Bandung are leading the ranks in the 3 areas measured by the report
CityEase of starting a
business Ease of dealing with
construction permits
Ease of registering property
Balikpapan 8 8 14Banda Aceh 6 10 8Bandung 5 3 1Denpasar 10 11 8Jakarta 7 13 2Makassar 9 2 10Manado 14 12 3Palangka Raya 3 3 5Palembang 4 6 6Pekanbaru 11 7 4Semarang 13 5 11Surabaya 11 14 6Surakarta 2 9 13Yogyakarta 1 1 12
Dealing with construction permits—many local differences during pre-construction
Yogyakarta
Makassar
Palangka Raya
Bandung
Semarang
Palembang
Pekanbaru
Balikpapan
Surakarta
Banda Aceh
Denpasar
Manado
Jakarta
Surabaya
0
50
100
150
200
250
0
50
100
150
200
250
Time Cost
Day
sC
ost (%
of G
NI p
er cap
ita)Time and cost to deal with construction permits
Time and cost to transfer a property title
Balikpapan
Banda Aceh
Bandung
Denpasar
Jakarta
Makassar
Manado
Palangka Raya
Palembang
Pekanbaru
Semarang
Surabaya
Surakarta
Yogyakarta
0
10
20
30
40
50
60
70
10.00
10.20
10.40
10.60
10.80
11.00Time Cost
Day
s
Co
st (% o
f pro
perty valu
e)
Registering property is faster in Manado than in Surakarta
Yogyakarta
Bandung
Surakarta
Palangka Raya
Balikpapan
Palembang
Banda Aceh
Makassar
Surabaya
Manado
Pekanbaru
Denpasar
Jakarta
Semarang
0
10
20
30
40
50
60
70
0
5
10
15
20
25
30
35
40
45Time Cost
Day
s
Co
st (% o
f GN
I pe
r capita)
Time and cost to start a business
Starting a business in Yogyakarta—easiest in Indonesia
Indicator Indonesia's global
performance in DB2010 (represented by Jakarta)
Best performing city within Indonesia
Best local practice
Global rank (183 economies)How Indonesian
cities would compare globally
Number of procedures to deal with construction
permits 14 procedures Yogyakarta 8 procedures 5
Days to deal with construction permits 160 days Makassar 56 days 9
Days to register property22 days Manado 12 days 24
Cost to deal with construction permits 194.8% of income per
capitaSemarang
107.6% of income per capita
78
Number of procedures to start a business
9 proceduresYogyakarta, Palangka Raya,
Surakarta8 procedures 93
Days to start a business60 days Yogyakarta, Bandung 43 days 143
Some cities perform up to international standards in certain areas
75%
9 reformers
90%
28 reformers
Number of states
2005 - 2007 2007 - 2009
► Great Impact • Political support for reform
efforts has continued even after two rounds of local elections and one presidential election since first benchmark
• 59 reforms recorded in 3 years• Methodology transfer to local
think-tank with support from Mexican government and WBG quality control
reformers Non reformers
Doing Business in Mexico 2005, 2007 & 2009
Competition and peer learning drive reforms
Why does it matter?
Evidence from business start-up reform in MexicoEvaluation of impact on formal firm creation of a municipal reform which decreased the time to obtain an operation license from average 30 to 2 days in 93 municipalities.
Increase in new start-ups by about 4% (Kaplan, 2006)Increase in employment in eligible industries by 2.8% (Bruhn, 2008)
Indicative of how policy reform can lead to substantial real impact
For moeere information visit: www.doingbusiness.orgTERIMA KASIH
http://www.doingbusiness.org/Indonesia http://www.doingbusiness.org/subnational
For more information visit: