The Indonesian government is set to simplify its investment regulations in response to the World Bank’s Business Ready (B-READY) 2024 report, issued in October of last year, which highlighted inefficiencies in the country’s business registration process.

“In […] Indonesia, it takes 65 days to register a new foreign company. In the most efficient economies, it takes three days,” said Norman Loayza, Director of the Global Indicators Group at the World Bank, during a discussion on the B-READY report in Jakarta on Monday, February 10, as quoted by The Jakarta Post.

In response, Minister of Investment and Downstreaming Rosan Roeslani acknowledged the findings and stated that the government is evaluating measures to improve investment processes.

“This will be an evaluation for all of us, and I will talk with other ministries that are closely connected to improving the investment climate and increasing the competitiveness [of businesses] in Indonesia,” Rosan told reporters at the event.

To address regulatory inefficiencies, the Investment Ministry is developing a “positive fictitious scheme,” which would allow automatic approval of business permits if they are not processed within the stipulated deadline.

The World Bank report ranked Indonesia second in ASEAN for overall business readiness, scoring 63.72 out of 100. While the country performed well in public services (84.25) and regulatory framework (80.42), it lagged in operational efficiency, scoring just 26.5, far below the global average of 78.67. Singapore topped the rankings with an overall score of 73.33, followed by Indonesia, the Philippines (60.27), and Vietnam (57.67).

Mari Elka Pangestu, Deputy Head of the National Economic Council, confirmed that the government is designing an action plan to address these concerns. “The Office of the Coordinating Economic Minister is responsible for implementing that plan,” she said, noting that Indonesia aims to reduce business registration time to 10 days “over a period of time.”

Beyond streamlining business registration, the government is also looking to enhance its investment climate amid increasing competition from regional peers and external economic pressures. Rosan emphasized that Indonesia’s strategic focus is to capitalize on its natural resources and downstream industrial sectors to attract investors. “So, the most important thing we convey is that we can always maintain stability. That becomes one of our positive points in inviting future investment,” he stated, according to Tempo.

The reforms come as Indonesia seeks to enhance its position amid ongoing global trade tensions, particularly between the United States and China.

A revised edition of the B-READY report is set to be released later this year, providing an updated assessment of Indonesia’s business climate and regulatory progress