Procedure for the establishment of a new business in Indonesia takes 151 days. Though President Susilo made the commitment to shorten the period to 30 days when he was sworn in, there has been very little improvement since.
Getting a property registered in Indonesia takes 42 days, slower than the previous 33days. Furthermore, the registration fee accounts for 10.9 percent of the covered property, the highest in South East Asia.
To enforce a contract through judicial means is a protracted process usually taking 570 days, the slowest in South East Asia except East Timore. Besides, payment for such procedure is very high, often as high as 126.5 percent of the payment involved in the enforced contract.
Besides, foreign investors often have to pay more than is due during their investment and business processes when dealing with the Indonesian Government agencies, which lack efficiency and the awareness and attitude to provide good services and facilitation to foreign investors. Besides, the legal system in Indonesia is confusing, manifested by a lack of regulations in many sectors and a lack of transparency in policy. Owing to the corruption in the judicial system, the chances of getting risks or disputes mitigated or settled through judicial compensation are small and the procedure takes time, energy and money.
