The main challenge Indonesia faces is not a lack of regulation, but the large number of overlapping and frequently changing rules that undermine investor confidence,
Jakarta (ANTARA) - Indonesia’s deregulation task force can help foster a more investment-friendly climate by simplifying overlapping regulations and improving bureaucratic efficiency, according to an economist.

M. Rizal Taufikurahman, Head of the Center for Macroeconomics and Finance at the Institute for Development of Economics and Finance (Indef), observed that Indonesia’s investment appeal in Southeast Asia hinges not only on fiscal incentives but also on its cumbersome regulatory and bureaucratic procedures.

Speaking to ANTARA from Jakarta on Monday, he noted that the country urgently needs to resolve regulatory issues that have long hindered the business sector.

He added that the deregulation task force is expected to tackle these problems and significantly strengthen the national investment climate.

Rizal emphasized the importance of making permit processes more accessible and improving coordination among ministries and state institutions, which could support job creation and industrial growth.

However, he warned that the task force must pursue genuine structural reform rather than short-term symbolic administrative measures.

“It is vital that the government ensures the task force has strong authority, measurable targets, transparent regulatory evaluations, and active involvement from business players and regional stakeholders,” he said, stressing the importance of avoiding a Jakarta-centric approach.

He also stated that deregulation should go hand in hand with stronger oversight, environmental protection, and legal certainty to prevent excessive liberalization.

“The main challenge Indonesia faces is not a lack of regulation, but the large number of overlapping and frequently changing rules that undermine investor confidence,” he concluded.

Earlier, President Prabowo Subianto instructed State Secretariat Minister Prasetyo Hadi to oversee the formation of the task force, urging greater efforts to simplify business-related administrative procedures.

Prabowo described deregulation as essential not only for attracting investment but also for preventing corruption, which he believes often arises from overly complicated regulations.



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Translator: I. Silfia, Tegar Nurfitra
Editor: M Razi Rahman
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