Applying for investment can be a hassle, now Indonesia's government said on Thursday it aims to slash the time it takes to process investment applications, which can take up to five years in some sectors, to as little as one day.
According to The Jakarta Post President Joko Widodo, unveiled measures in a new package of government policies to cut red tapes.
The new measures include setting up task forces in ministries and regional governments, and ensuring that officials share data so no investment applications are held up.
Indonesia's economy has been growing at around 5 per cent in the last few years, but policymakers have been frustrated by an inability to speed up the pace, partly due to sluggish consumption and fairly tepid investment.
Foreign direct investment (FDI) into Indonesia represented less than 2 per cent of all global investment on average in 2012-2016, government data showed, and over that period less than 30 per cent of foreign commitments were eventually realized.
Incoming FDI declined in 2015 and 2016, and is rebounding now, Bank Indonesia's balance of payments data shows. The central bank recorded a nearly 40 per cent increase in the first half of 2017, to US$8.82 billion.
The goal of the new measures is to create a single submission system for investors so they only have to go one place to get all required licenses, said coordinating minister of economics Darmin Nasution.
This year, Mr. Widodo's administration aims to cut the time needed to get a full investment license from three-five years to a matter of months, and then try a new method of processing from January to cut the time to just a day.
Indonesia is aiming for 5.6 percent economic growth in 2018. The government will turn its focus to six sectors to achieve the target. But three priority sectors will play major role, those are processing industry, agriculture and tourism. These sectors will boost growth and create employment opportunities.