Research conducted by the Asia Competitiveness Institute (ACI) has shown that East Java was top in ease of doing business (EoDB) this year, followed by West Java, Central Java and Jakarta.
The research was based on a survey by the ACI with 925 business entities operating in 34 Indonesian provinces.
“There is competition among the regions to attract investors,” said research fellow and ACI deputy director Mulya Amri at a press conference in Jakarta on Tuesday, as reported by tempo.co.
There are three categories assessed by the ACI, namely attractiveness to investors, business friendliness and competitive policies, said Mulya.
In the attractiveness to investors category, Jakarta’s ranking fell from first in 2015 to third, replaced by West Java, which was fifth in 2015.
In the business friendliness category, Jakarta ranked seventh this year from second in 2015. Central Sulawesi ranked first, while in the competitive policies category, Jakarta’s position improved to 19th from 30th in 2015.
Jakarta Property Institute executive director Wendy Haryanto said Jakarta’s falling ranking in EoDB was because of the difficulty to arrange building construction permits in the capital.
“There is no innovation in the licensing process in Jakarta. The Jakarta Investment Agency and the One Stop Integration Service still have many problems,” said Wendy, adding that it was the reason why investors prefer to invest in other regions. (bbn, The Jakarta Post)