Regulations issued by regional administrations should not hamper the implementation of the series of policy packages launched by the central government over the past years, the president said.
"The regions should take follow up steps to implement the policy packages, but the regulation should not hamper our own movements," Jokowi said in a ceremony here on Saturday (May 7).
He said currently the government focused on two priority targets - deregulation and acceleration of infrastructure development.
Deregulation is needed by a big nation to act faster not hampered by regulations, he added.
Meanwhile Vice President M. Jusuf Kalla said ministries are in charge of the supervision over the implementation of the economic policy packages in their respective areas.
The ministries will report to the president the progress made in the implementation of economic policy packages, Kalla said.
Earlier, the office of the Coordinating Minister for Economy announced the 12th economic policy package focusing on business facility for micro, small and medium enterprises (UMKM).
"We have focus each time we issue a policy. Yesterday, the focus (of the 11th policy package) was on logistics and the 12 policy package is focused on how to create business facility," Eddy Putra Irawady, a deputy at the office of the coordinating minister for economy in charge of commercial and industrial coordination said in Balikpapan, on Wednesday last week (May 4).
Eddy said UMKMs are still restricted with the requirements to have business license, certification and other red tape.
The Association of Indonesian Young Business People (Hipmi) asked regional administrations not to be interested only in large investment and belittle the role of UMKMs in the countrys economic development.
"In aggregate the role of UMKMs is stable and significant. This is why they are important," Himpi chairman Bahlil Lahadalia said.
Bahlil said showed that UMKMs contribute around 50 percent to the countrys total investment. UMKMs even account for 97 percent of jobs in the country, and contribute 50 percent to the countrys Gross Domestic Products per year.
"The red carpet should be spread not only for big investors," he said.
Earlier, chairman of the People Consultative Assembly (MPR) Zulkifli Hasan said regional administrations should be encouraged to expand and improve the welfare of the people in their respective areas.
"Regional administration should facilitate UMKMs in marketing their products and involved them in exhibition, workshops and trade promotion," Zulkifli.
He said marketing is not only about capital but also concerns various other factors often found in small industrial centers.
"Regional administrations need to facilitate meetings between sellers and buyers of products of small industries. Regional administration could also give priority to using the products of UMKMs ," he said.
He said heads of regional administrations should remembers the promise they gave ahead of their elections.
They should not betray the people which have chosen them as their leaders.
The chamber of commerce and industry (Kadin) also called for heads of regional administrations such as regents not to issue regulations that would run counter to the policy of President Jokowi.
"Kadin said the spirit of deregulation of President Jokowi could be followed by the regions or at least stop issuance of restrictive regulation in the regions," deputy chairman of East Indonesia Kadin Andi Rukman Karumpa said after the opening of an exhibition by the Association of all Indonesian Regencies here on Saturday.
Andi said Kadin hopes that district administrations not to issue regulations that would discourage investors to do business in the country.
He said currently there are still many restrictive regional regulations not in line with the policy of the central government.
The central government is working hard to attract investment but many regional administration still issue restrictive regulations that discourage investors, he said.
The target is that evaluation of the regional regulation would wrapped up in early 2016 including licensing procedure in the energy sector, Andi said.
"The central government has given an example taht so fat it had cancelled or abolished 270 regulations of the home affairs minister," he said.
He said there are a number of regional regulations that hamper state companies (BUMNs) in carrying out its order to immediately improve public services.