Most Indonesians earn their income from small businesses. This line of work absorbs nearly 90 percent of the country’s workforce but contributes only 50 percent of its GDP.
Small business owners also routinely face regulatory roadblocks in keeping their shops open, mostly in licensing, human resources, marketing and financing.
One of the most complained about regulatory roadblocks is the labyrinthine licensing process, made worse by a slow and inefficient bureaucracy.
Didi, the owner of a small furniture factory in Cakung, East Jakarta, said “The bureaucracy is still too rigid. It takes too long to get a permit that most businesses do away with it.”
In his case, it took him almost six months to get his furniture workshop licensed, and that was after paying a friend Rp 5 million ($375) to “speed up” the process.