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How to cut red tapes

Sunday, January 28, 2007

If you go to Sunda region (that is to say, west java), you will find sour -- but very tasty -- food called tape. You should try the food, but, let's skip the culinary talks for now ;)

Sarapan ekonomi suggest an easy way to boost indonesia's economy: cut the red tape. Here's what he said:
But, let me offer an "easy" shortcut to Indonesia's prosperity: Cut red tapes, leave entrepreneurs alone, and let them create jobs. As I have always said, all we need to do are shredding some paper forms and closing some offices. Nothing would be easier than that.

Can't agree more. I wrote in my 2005 article on how the red tape looks like in Indonesian legal system:
Indonesia's legal system recognizes the hierarchy of rules ranging from the Constitution, laws and Government Regulations in lieu of Law (Perpu), followed by Implementing Regulations that consist of Government Regulations (Peraturan Pemerintah), Presidential Regulations (Perpres) and Regional Bylaws (Perda). There have been around 8,000 such regulations in recent years.

That figure still excludes bilateral treaties to which Indonesia is a party and sectoral regulations. A note must be taken that in the wake of decentralization, local administrations will enact regulations more often. If there are 400 regencies and municipalities in Indonesia and each of them creates 10 regional regulations per year, then there might be an additional 4,000 or so regulations per year.

Some people think that more regulations means more justice. I think its misleading. More regulations means more tax, more desks, more envelopes to be prepared, more red tape. I am personally in favor of de-regulation. OK, in some cases it's no-no. But, if we really need regulation, why don't we just install an automated system? Computers can do it all and computers don't need retirement fees...