Indonesian President Prabowo Subianto has instructed a new taskforce to combat years-long bureaucratic delays and deregulate business permits.
The initiative aims to drastically cut processing times, comparing Indonesia’s current pace unfavorably with that of neighboring countries where licenses are issued in weeks.
“Why Two Years When Others Take Two Weeks?”
During a speech at the Attorney General’s Office on May 13, 2026, President Prabowo voiced strong criticism of the existing licensing system.
He noted that many investors, both domestic and foreign, complain of unreasonable and excessively lengthy procedures.
In some cases, he said, permits take one to two years to be issued.
“If they can issue permits in two weeks, why does it take us two years?” President Prabowo Subianto said.
The President noted that while the government has tried to simplify processes, some bureaucrats create new complications through technical rules, and even use the delays as opportunities for corruption.
He instructed Minister Prasetyo Hadi to assemble a task force in collaboration with experts, reiterating that honest entrepreneurs must be supported, not obstructed.
“Simplify, don’t complicate. Entrepreneurs must be helped, must be supported,” Prabowo said during his speech at the Attorney General’s Office in Jakarta.
New Pressure from Chinese Investors
The push for deregulation follows a formal letter of complaint from the China Chamber of Commerce on May 12, 2026.
According to Chinese investors, there are several main hurdles which include difficult permits, rising mineral royalties, regulatory uncertainty, and what they called excessive law enforcement.
While acknowledging their contribution to Indonesia’s development, the chamber warned that businesses are facing growing challenges in the country.
Prabowo’s planned task force is a direct response to investor complaints, aiming to simplify the process and cut red tape that has long choked off direct investment.
Source: nasional.kontan.co.id, tempo.co
Feat Image: RRI.co.id
