The Rank in Doing Business can Probably Improve

Indonesia has a big room for improvement in doing business in East Asia this year. Indonesia is still in rank 155, compared to Vietnam which is in rank 100 for doing business in the world. As a new emerging market in Asia, getting a higher rank would help to grow the domestic economy in the future.

Investment Coordinating Board of Republic of Indonesia

Based on Doing Business 2011, Indonesia ranks above the 100 line. This means that doing business in Indonesia is quite hard as compared to Vietnam of South East Asia region. Some indicators that government needs to improve are easing the dealing of construction permits, registering property, getting credit and protecting investors.

Investors need four days and it will cost them IDR200.000 to complete the form on their company details with the Ministry of Law and Rights. To notarize the company document, four days is needed in its completion with cost of IDR2,5 million. Registration of company with the Ministry of Trade takes 15 days with cost of IDR500.000.

In Vietnam, the investor needs 14 days to check the proposed company name. Making the company seal takes 6 days and registration of sea sample will take 4 days at the Department of Police. Registration for trade union takes about 7 days. Total time to complete a business registration in Vietnam takes 53 days, 6 days faster compared to Indonesia which takes 59 days.


The rank of doing business in Vietnam has improved this year compared to 2010. Vietnam was at 114 last year, jumping to rank 100 in 2011. Indonesia should be able to improve to 154 at least, seeing how it had improved 4 ranks from last year.

Indonesia can probably fix some indicators in doing business to get a higher rank through efforts of shortening registration time in Ministry on Manpower and Ministry of Trade.

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