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Reducing the Effect of Bureaucratization on Business Licensing Service in Indonesia

21/6/2018

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Muhammad Syafiq and Naufal Sabda Auliya
National Institute of Public Administration, Indonesia

Excessive bureaucracy has caused some bureaucratic pathologies that have impacted on the low performance of licensing services to start a business in Indonesia. The purpose of this study is to identify and analyze the problems in the business licensing process for starting a business, the barriers to simplify the process in business licensing service for starting business, and the strategy to optimize the business licensing process. Mixed methods of a qualitative nature have been used. Data shows that the problems in the business licensing process for starting a business are the number of required documents, the number of agencies involved, the emergence of unofficial fees, and the length of time. The barriers to simplifying the licensing process for starting a business are insufficient delegation of authority, lack of professional human resources, overlapping rules, less than optimal utilization of IT, and non-centralized population data. Some strategies that can be used in optimizing the simplification process of licensing service are synchronizing policies and regulations, delegating authority, optimizing the utilization of IT and capacity building of HR.

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​EASTERN REGIONAL ORGANIZATION FOR
​PUBLIC ADMINISTRATION

NCPAG Bldg., RP de Guzman St.,
University of the Philippines, Diliman,
Quezon City, Philippines 1101
Telefax: (+632) 8 929 7789
​WhatsApp / Viber: 63917 465 4300
  • Home
  • About
    • Our Story
    • Constitution
    • EROPA Centers
    • EROPA Secretariat >
      • Sec-Gen's Corner
    • EROPA Chairperson
  • Publications
    • Public Administration News
    • ARPA >
      • ARPA Editorial Board
      • ARPA Call for Papers
      • Publication Ethics and Malpractice Statement
      • Notes for Contributors
      • Abstracts >
        • 2019, Volume 30, Nos. 1-2
        • 2018, Volume 29, Nos. 1-2
        • 2017 Volume 28, Nos. 1 & 2
        • 2016 Volume 27, Nos. 1 & 2
        • 2015 Volume 26, Nos. 1 & 2
        • 2014 Volume 25, No. 2
        • 2014 Volume 25, No. 1
        • 2013 Volume 24, Nos. 1 & 2
        • 2012 Volume 23, Nos. 1 & 2
        • 2011 Volume 22, No. 2
    • EROPA Bulletin >
      • Call for Inputs
    • Resources >
      • EROPA Brochure & Forms
  • Membership
    • Members' Corner
    • Join EROPA >
      • Individual Membership Form
      • Group Membership Form
      • State Membership
    • State Members
  • Conferences
    • 2023 EROPA Conference
    • 2022 EROPA Conference
    • 2021 EROPA Conference
    • 2020 EROPA Conference
    • List of Past Conferences
    • Database for Past Conferences >
      • EROPA 2022 Conference
      • EROPA 2019 Conference
      • EROPA 2018 Conference
      • EROPA 2017 Conference
      • EROPA 2016 Conference
      • 2012-2015 Conferences
    • Carlos P. Ramos Award for Best Conference Paper
    • Asian Leadership Forum
    • Stories to Share
  • Activities
    • Latest Activities
    • EROPA ExP >
      • Find an Expert >
        • Peter Bergerson
        • Edna Estifania A. Co
        • Sofian Effendi
        • Akio Kamiko
        • Pan Suk Kim
        • Masao Kikuchi
        • Perla Legaspi
        • Lue Li
        • Akira Nakamura
        • Orlando Mercado
        • Jon Quah
        • Lisa Saye
        • Sombat Thamrongthanyawong
        • Prijono Tjiptoherijanto
        • Roger Wettenhall
        • Tao Zhang
        • Mohd Afzanizam Mohd Badrin
        • Wong Wai Lun, Vincent
      • JOIN ExP DATABASE
    • OYPA >
      • FAQs/Guidelines
      • OYP Nomination Form
  • #TAG Dialogue
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