Jakarta (ANTARA) - The governments of Indonesia and the United Kingdom have agreed to strengthen regulation reform to maintain the momentum of the country's economic growth that has, so far, been sound.
The agreement was marked by the signing of a memorandum of understanding (MoU) on the development of regulation reform between Indonesia's Coordinating Ministry for Economic Affairs, Foreign and Commonwealth Office, Ministry for Business, Energy, and Industrial Strategy of the United Kingdom and Northern Ireland in Jakarta on Wednesday.
This collaboration aims to offer technical support for the development of regulation reform amounting to £1.14 million (equivalent to Rp20.6 billion) that will be valid for five years until March 31, 2023.
This support was garnered from a grant of the Foreign and Commonwealth Office of the United Kingdom and Northern Ireland, through the England Welfare Fund, managed by the Regulatory Services International Unit, Ministry for Business, Energy and Industrial Strategy of United Kingdom and Northern Ireland.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono has projected that the collaboration can encourage economic growth by stepping up economic activities in the long term.
"We are upbeat that this collaboration would improve regulation to increase investment. As a result, the cooperation can boost economic growth and reduce poverty in Indonesia," he stated.
The signing of the MoU will be followed up with training and workshops on border post and product market surveillance regime in Indonesia as the first agenda.
Also included are the exchange of information, program, education, training, workshop, and capacity building or another collaboration agreed by both countries.
The cooperation also encompasses a work plan that is detailed in its implementation to be observed annually, with a clear purpose.
"The program is flexible to tackle priority issues from the Indonesian government," Susiwijono remarked.
Recently, Indonesia's economic growth has been good despite several global threats in the form of escalating tension in trade wars that can slacken global trade performance.
Improvements in the competitiveness ranking and Indonesian debt ratings also increased investment realization as was apparent from the growth of 5.3 percent in the first quarter of 2019.
Hence, the government will continue structural reformation to improve the investment climate and implement the integrated service system.
Technical cooperation with the Commonwealth of the United Kingdom of Great Britain and Northern Ireland was dependent on the support of ministries and institutions to realize the regulation reform.
British Ambassador to Indonesia Moazzam Malik remarked that the International Civil Service Effectiveness Index (InCisSE) recently named Britain as the best country in forming and implementing regulations.
The United Kingdom has a regulatory system, such as economic regulations. The United Kingdom can share expertise with partners in Indonesia in implementing regulation in accordance with the market requirements.
"Those regulations must be implemented to ensure that markets can run effectively for economic growth and job creation. A good regulation creates a government that can encourage startup businesses and investment as well as meet the consumer requirements," the ambassador stated.
Hence, the ambassador expects that the partnership can boost competitiveness, open business opportunities for people, accelerate investment activities, and drive economic growth in future.
"Through collaboration, we can support progress of the Indonesian economy. If Indonesia can do it successfully, we will be able to create a more prosperous world," the ambassador affirmed.
EDITED BY INE