East Java Tops Ease of Doing Business Index

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  • Illustration of business. credit: sxc.hu

    Illustration of business. credit: sxc.hu

    TEMPO.CO, Jakarta - The Asia Competitiveness Institute (ACI) reports that East Java Province is topping ease of doing business (EoDB) index 2017. Meanwhile, Jakarta stands in 4th position, below West Java and Central Java.

    The results were based on economic statistics and ACI research on 925 businesses in 34 provinces in Indonesia.

    “There’s some kind of competition between regions to attract investment. Jakarta is competing with East Java and Central Java because many labor-intensive industries have moved there [E. Java],” Research Fellow and Deputy Director of ACI Mulya Amri told reporters in a press conference yesterday at Grand Hyatt Hotel in Jakarta.

    ACI assessed three major categories in the research conducted from April to September 2017, namely attractiveness to investors, business friendliness, and competitive policies.

    Jakarta’s rank dropped in attractiveness to investors from first in 2015 to third this year. The top spot is held by West Java that was ranked 5th last year.

    In business friendliness, Jakarta is ranked 7 this year after being the runner-up in 2015. The category is won by Central Sulawesi that previously held 11th position.

    As for competitive policies, Jakarta is ranked 19th after standing in the 30th position in 2015.

    Director Executive of Jakarta Property Institute (JPI) Wendy Haryanto said that the application for the building permit was one of the main indicators of EoDB. Jakarta’s rank has dropped in the ACI research due to difficulties to apply for the building permit (IMB).