1. the Ease of Doing Business in Indonesia
Improvement of
the Ease of Doing Business in Indonesia

2. Improvement of Doing Bussiness
Target of DB 2017; Presiden is looking the country to achieve 40th position
Doing Business 2017
Comparison of Doing Business Regulation in 190 countries on 10 indicators performed by IFC/World Bank (Starting A Business, Dealing with Construction Permit, Getting Electricity, Registering Property, Getting Credit, Protecting Minority Investors, Paying Taxes, Trading Across Borders, Enforcing Contract, and Resolving Ensolvency).
DB 2017 Report
Indonesia is Top Reformer country based on improvement made in 7 indicators of Ease of Doing Business (starting a business, getting electricity, registering property, getting credit, paying taxes, trading across borders and enforcing contracts). From 190 countries surveyed, 139 countries made improvements to all indicators.
Indonesia’s ranking jumped 15 places to 91th position from 109th in the previous DB 2016 (or 106 after data adjustment).
Target Doing Business 2018
35th position on Government Work Plan (RKP) 01

3. Indonesia's Position on 10 Indicators
Doing Business 2017
Indonesia's Position on 10 Indicators
Indikator
DB 2017
DB 2016
Perubahan 91
106 15
Starting a Business
151
167 16
Dealing with Construction Permits
116
113 3
Getting Electricity 49 61 12
Registering Property
118
123 5
Getting Credit 62 70 8
Protecting Minority Investors 69 1
Paying Taxes
104
115 11
Trading Across Borders
108
Enforcing Contract
166
171
Resolving Insolvency 76 74 2
Ranking EoDB 2017
GNI per Capita
(USD)
SINGAPORE (2)
52,090
AUSTRALIA (15)
60,070
MALAYSIA (23)
10,570
THAILAND (46)
5,620
CHINA (78)
7,820
INDONESIA (91)
3,440
PHILIPPINES (99)
3,540
INDIA (130)
1,590 02

4. 10 13 37 91st World Bank Ease of Doing Business 2017 91 109 114
Indicator 13
Ministry/Institution and Local Government 37
Deregulation
91st
+ TOP REFORMER COUNTRY
Improvement from 106th position at Doing Business 2016
Ranking at EODB 2017
COUNTRY
Indonesia
Singapore
Malaysia
Thailand
Brunei
Vietnam
Philippines
RANK 91 2 23 46 72 82 99
Improvement of EoDB 1
Starting a Business √ 2
Dealing with Construction Permit 3
Registering Property √ 4
Getting Electricity √ 5
Paying Taxes √ 6
Trading Across Borders √ 7
Getting Credit √ 8
Protecting Minority Investor 9
Enforcing Contract √ 10
Resolving Insolvency 91
109
114
120
129
2013
2014
2015
2016
2017 03

5. EoDB Rank per Indicator
Trading Across Borders
Enforcing Contract
Resolving Insolvency
151
116
118 49
104 62 70
108
166 76 1 2 3 4 5 6 7 8 9 10
Indonesia EoDB Rank 91
2017
2016
Recalculation1
167
113
123 61
115 69
171 74
106
Starting a Business
Dealing with Construction Permit
Registering Property
Getting Electricity
Paying Taxes
Getting Credit
Protecting Minority Investor
TOP REFORMER EODB 2017
Minimum Capital shall be paid in accordance with the agreement of related parties.
Reduces time and cost of getting power connections.
Cadastral data digitization and utilization of GIS system.
Facilitate credit access through the registration of modern collaterals.
Paying taxes via online.
Facilitate export and import through improvement of customs and registration service (Exported Goods Declaration and Imported Goods Declaration).
The existence of a simple lawsuit procedure in a commercial court.
1 Recalculation Factor:
The existence of the addition of gender components on the indicators of Starting a Business, Registering Property, and Enforcing Contract;
Methodology change through the addition of postfilling process in Paying Taxes indicator;
There are data corrections for indicators of Construction Permits, Getting Electricity, Registering Property, Protecting Minority Investors, and Trading Across Borders.
A significant reform is urgently needed 04

6. 01 Starting a Business BEFORE AFTER COMPANY NAME CHECKING AND BOOKING
DONE VIA AHU ONLINE BY NOTARY
DONE VIA AHU ONLINE BY NOTARY AND PUBLIC
AUTHORIZED CAPITAL DEPOSITED
IN ACCORDANCE TO THE AGREEMENT OF RELATED PARTIES
COMPANY ESTABLISHMENT COST
COMPANY NAME BOOKING IDR 200,000
COMPANY NAME BOOKING IDR 100,000
LEGALIZATION OF THE LEGAL ENTITY IDR1,000,000
NOTARY FEES 1.5% from Deed of Establishment (IDR6,495,000)
GOVERNMENT FEES IDR 580,000
LEGALIZATION OF THE LEGAL ENTITY IDR600,000
NOTARY FEES IDR 4,000,000
GOVERNMENT FEES IDR 400,000
REGISTRATION OF NATIONAL HEALTH CARE SECURITY
7 DAYS
DONE VIA ONLINE IN 1 FORM AND WEBSITE
REGISTRATION OF NATIONAL SOCIAL SECURITY
LOOK AFTER THE LETTER OF BUSINESS PERMIT & COMPANY REGISTRATION
2 SEPARATED PROCEDURE
MERGED INTO 1 PROCEDURE AT OSS CENTER
REGISTRATION OF EMPLOYEE AT DEPARTMENT OF MANPOWER
1 SEPARATED PROCEDURE
MERGED INTO 1 PROCEDURE TOGETHER WITH LETTER OF BUSINESS PERMIT & COMPANY REGISTRATION AT OSS CENTER
SURVEY RESULT OF EODB
11 PROCEDURES
24.9 DAYS
IDR 2,780,000 (19.4% from income per capita) and Does not Require Minimum investation
5 PROCEDURES
IDR 1,950,000 (13.6% from income per capita) and Does not Require Minimum investation
BEST PRACTICE
Netherland (22)
Procedure: 4
Time: 4 hari
Cost: 4.5 % income per capita 05

7. Dealing with Construction Permit02
Dealing with Construction Permit
SIMPLE COMMERCIAL BUILDING / WAREHOUSING 2 FLOOR WITH BUILDING 1,300 M2
BEFORE
AFTER 17
Procedures 6
200
Days 49
IDR 115,381,380
(5% from warehouse value)
IDR 81,240,630
Maximum (3.75% from warehouse value)
PROCEDURE
TIME
COST
Reduction of Building Permit (IMB) Retribution Fee for MSMEs with a maximum area of < 1,300 m2 of 50%
BEST PRACTICE
Vietnam (24)
Procedure: 10
Time: 166 days
Cost: 0.8% building warehouse value 06

8. 03 Registering Property 5 4 28 5.5 5% 2.5% < BPHTB 5% BEST PRACTICE
On Cost*
Georgia (3): 0 %
New Zealand (1): 0.1 %
Singapore (19): 2.9 %
Vietnam (59) 0.6 %
* From Property Value
BEFORE
AFTER 5
Procedures 4 28
Working Days
5.5 5%
Income Tax
2.5%
Indonesia 8.3%
RP Rank: 118
Income Tax: 2.5%
Land and Building Transfer Duty (BPHTB): 5%
Administration: 0.8%
BPHTB
< 5%
NEEDS TO BE LOWERED
Land and Building Transfer Duty
*Income Tax 1% applicable for Simple House or Flats 07

9. 357% from income per capita 53.71% from income per capita**04
Getting Electricity
BEFORE (49)
AFTER (9)
Procedure
4.8 3
Installation Time
57.7 days
25 days
Installation Fee
IDR 775 / VA
(Pre-Paid)
IDR 775 / VA
(Installation Fee* to be installed 12/24 months together with monthly electricity bill)
Inspection and Compliance Certificate (SLO) Fee
IDR 17.5 / VA
IDR 15 / VA
Total Cost
357% from income per capita
53.71% from income per capita**
BEST PRACTICE
Brunei (21)
Procedure: 4
Time: 35 days
Cost: 54.2% from income per capita
*Total Installation Fee:
Installation Fee + Deposit Charges IDR 165/VA + Stamp duty. ** Assuming the WB DB team calculates the cost of IDR 0 included in the electricity bill for 12 or 24 months. 08

10. 05 Paying Taxes 54 10 OFFLINE SYSTEM ONLINE SYSTEM BEST PRACTICE
INDONESIA
Payments (number per year): 43
Time (hours per year): 221
Total tax rate (% of profit): 30.6%
Postfiling Index (0-100): 76.5
BEFORE
OFFLINE
SYSTEM
ONLINE
SYSTEM
Payments (number per year): 10
Time (hours per year): 221
Total tax rate (% of profit): 30.6%
Postfiling Index (0-100): 76.5 54
PROCEDURES 10
PROCEDURES
AFTER
TOTAL PROCEDURES
BEFORE
AFTER
COMPANY INCOME TAX 13 2
SOCIAL SECURITY CONTRIBUTION 1
CORPORATE GUARANTEE CONTRIBUTION 12
PROPERTY/CAPITAL GAIN TAX
PROPERTY TAX
VEHICLE REGISTRATION TAX
BIAYA MATERAI
EMPLOYMENT INCOME TAX
VALUE ADDED TAX (VAT)
BEST PRACTICE
Korea (23)
Payments (number per year) : 12
Time (hours per year) : 188
Total tax rate (% of profit) : 33.1%
Postfiling Index (0-100) : 92.58 09

11. 06 Getting Credit BEST PRACTICE BEFORE AFTER
Financial Service Authority (OJK) has issued licenses to private credit bureaus in indonesia:
PT Kredit Biro Indonesia Jaya
PT Pefindo Biro Kredit (soft launching operating 27 March 2017)
IMPACT
Enhance national competitiveness through providing credit information access for the financial service industry actors
BEST PRACTICE
Malaysia (20)
Strength of legal rights index (0-12): 7
Depth of credit information index (0-8): 8
Credit registry coverage (% of adults): 62.4%
Credit bureau coverage (% of adults): 76.4%
BEFORE
AFTER
FIDUSIA ONLINE SYSTEM
IMPACT:
DATABASE NOT YET DEVELOPED TO SEARCH BASED ON DEBTOR NAME, OBJECT TYPE, AND CERTIFICATE NUMBER.
SEARCHING FUNCTION ARE ALLOWED TO BE ACCESSED ONLY BY NOTARY.
THE COST IS IDR (DETERMINED BY THE GOVERNMENT REGULATION NO. 10/2015).
FIDUSIA DATA IMPROVEMENT ACCORDING TO DEED DONE MANUALLY BY THE OFFICER DURING 2 WEEKS.
ENHANCED FIDUSIA ONLINE CAPABILITY
IMPACT:
DATABASE COULD BE FOUND BASED ON DEBTOR NAME, OBJECT TYPE, AND CERTIVICATE NUMBER.
SEARCHING FUNCTION ARE ACCESSIBLE FOR PUBLIC NOT ONLY BY NOTARY.
THE COST IS IDR (DETERMINED BY THE GOVERNMENT REGULATION NO. 10/2015)
FIDUSIA DATA IMPROVEMENT ACCORDING TO DEED DONE ONLINE AND REALTIME. 10

12. CORPORATE TRANSPARENCY OWNERSHIP AND CONTROLLER07
Protecting Minority Investor
Adding Point
BEST PRACTICE
SHAREHOLDER RIGHTS
SHAREHOLDERS ACTION
CORPORATE TRANSPARENCY
India (13)
Extent of disclosure index (0-10): 7
Extent of director liability index (0-10): 6
Ease of shareholder suits index (0-10): 7
Extent of shareholder rights index (0-10): 10
Extent of ownership and control index (0-10): 8
Extent of corporate transparency index (0-10): 6
ACCESS TO EVIDENCE
OWNERSHIP AND CONTROLLER
INDONESIA
GENDER DIVERSITY
PUU No. 40/2007
POJK No. 33 Year 2014 on Board of Directors and Board of Commissioners of Issuers or Public Companies
BEFORE
Extent of disclosure index (0-10) : 10
Extent of director liability index (0-10) : 5
Ease of shareholder suits index (0-10) : 2
Extent of shareholder rights index (0-10) : 6
Extent of ownership and control index (0-10) : 6
Extent of corporate transparency index (0-10) : 5
New Assessment Index in EODB 2018
ACCESS TO EVIDENCE
New Policies for Shareholder Rights and Corporate Tranparency Index
Financial Service Authority (OJK) publishes two new regulations:
POJK No. 10/POJK.04/2017 Year 2017 about POJK Revision No.32/POJK.04/2014 on Plans and Implementation of GMS of PT (limited liability company) which gives 2 points “YES” on Shareholders Right Index (8/10).
POJK No. 11 Year 2017 on Ownership report or any change of share ownership of PT which gives 1 point “YES” on Corporate Tranparency Index (6/10).
AFTER
Extent of disclosure index (0-10) : 10
Extent of director liability index (0-10) : 5
Ease of shareholder suits index (0-10) : 2
Extent of shareholder rights index (0-10) : 8
Extent of ownership and control index (0-10) : 6
Extent of corporate transparency index (0-10) : 6 11

13. Trading Across Borders08
Trading Across Borders
CHANGES
BEFORE
AFTER
Delivery Order Online
3 days
0,5 days
Payment of Taxation and PNBP under
the Ministry of Finance
Separated Online
Online (MPN G2/State Acceptance Module 2nd Generation)
Exit/Entry Permit
INSW
INSW and integrated
Customs Registration
Different number identity/one by one
Single Identity Number
Docked and Sailed Ship
Inaportnet
Inaportnet integrated with INSW
THC/Terminal Handling Charge Payment
Manual
E-Billing
Norwegia (22)
Border Compliance Documentary Compliance
Time to export (hours): 2 Time to export (hours): 2
Cost to export (USD): 125 Cost to export (USD): 0
Time to import (hours): 2 Time to import (hours): 2
Cost to import (USD): 125 Cost to import (USD): 0
BEST PRACTICE 12

14. 09
Resolving Insolvency 13

15. 10
Enforcing Contract 14

16. Jl. Jend. Gatot Subroto 44, Jakarta 12190 P. O. Box 3186, Indonesia P
Jl. Jend. Gatot Subroto 44, Jakarta P.O. Box 3186, Indonesia P.  (Hunting)       (Contact Center) F.