JAKARTA - Indonesian Chamber of Commerce and Industry (Kadin) Chairman Rosan Roeslani said that the implementation of the online single submission (OSS) system often faces obstacles due to lack of cooperation from local governments.
According to Mr Roeslani, many investors complain about licensing process at the regional level due to populist requirements, such as the obligation to recruit local residents as workers in the company involved despite questionable skills and productivity.
“Neighbouring countries always carry out policy reforms, and we should follow suit because otherwise we would be so far behind. In order to get out of the middle income trap, our economic growth must reach 7%,” said Mr Roeslani as quoted by Bisnis.com, Tuesday (16/7).
However, Mr Roeslani said, it is understandable that forcing local governments to implement the OSS system strictly as the central government wishes is no easy matter. With the system, local governments often transfer their authorities, especially in relation to licensing, to the central government.
Mr Roeslani added that he nevertheless appreciates a few local governments that are progressively opening up to investment and improving their population’s productivity. In addition, he said, a robust system must be developed to maintain regional investments. (MS)