Regulatory reform is a priority in the government work plan. President Joko Widodo prioritized this area since the economic development of Indonesia is often hampered by excessive regulations and bureaucracy on the sub-national level. Against this background, the Directorate of Legislation at the Ministry of Law and Human Rights – with support of the Hanns Seidel Foundation - held an expert meeting on 8 and 9 February 2018 in Tangerang.
The experts focused their presentations on the regulatory environment and on the harmonization of existing regulations. Two experts also presented case studies on the regulatory system in South Korea and in Japan. Regarding regional regulations in Indonesia, problems exist because decentralization grants vast authority to local governments to create their own regulations. Better co-ordination between the regional and the national level, and between the relevant ministries and agencies, is needed in order to harmonize the existing regulations. Cutting red tape must also be a priority in order to make Indonesia more attractive for foreign direct investment (FDI).
The Directorate General of Legislation is in charge of developing the draft legislation for the envisioned regulatory reform. The input and recommendations of the experts will help the ministry in the process of drafting the relevant legislation. Furthermore, as a result of the expert meeting it was decided by the Director general of Legislation to establish two expert working groups. One working group will conduct additional research; the second working group will draft a guideline on handling regulatory disputes outside of the court system (ADR). Hanns Seidel Foundation will support the work of both working groups.