YOGYAKARTA - At least 10 laws related to bureaucracy in the investment services need to be revised. The Laws are considered inhibiting the growth of the investment climate in Indonesia. The ten laws that need to be revised are Law on Limited Liability Company (Company Law), Law on Disturbance Field (HO), Law on Company Ordinance, Investment Law, Land Law, Customs Law of Acquiring Land Rights and Buildings, Law on Mineral and Coal Mining, Labor Law, Capital Market Law and Law on Establishment of Legislation. This issue was delivered by Drs. Taufiq Effendi, MBA, in his open doctoral examination at Faculty of Law, Universitas Gadjah Mada, Friday (15/4). As a promoter was Prof. dr. Muchsan, SH, and co-promoter was Prof. Dr. Nindyo Pramono, SH, M.S.
In front of board of examiners led by Prof. Dr. Marsudi Triamojo, SH, LLM, Taufiq Effendi delivered several reasons to revise these Laws, the first is the ten laws that are not consistent with national laws namely, Pancasila and State Constitution 1945. Second, they are centralized which is inconsistent with the spirit of decentralization and regional autonomy. Third, legislations are overlapping as seen in the articles that govern them. "Ten laws relating to the bureaucracy in the investment contain problems while the content of legislation needs to be improved or revised to conform with good legal theory and direction of legal policy of Indonesia," said the member of Commission II of House of Representatives of Indonesia.
Besides, the former minister of Administrative Reform, said the existence of this law hampers bureaucracy reform efforts which should focus on changing the mindset and cultural set of bureaucracy from 'to be served' to 'serve' to be able to perform its role as a servant of community. He added, bureaucratic obstacle causes the investment climate undeveloped in Indonesia. "There are bureaucratic obstacles in the implementation of legislation, so that the investment climate has not grown and undeveloped in Indonesia," he said.
Bureaucratic obstacles still occur due to conflict of interest between the central and local governments. Furthermore, there is a barrier in the implementation of institutional standard between the central and local governments. "The centralization of authority in the investment service and obscurity of regulation about local institutions cause the application of institutional standard in regions has different interpretations," he explained.
Furthermore, constraints in limited personnel who have high professional competence in service causes bureaucratic reform has not been realized. This is due to the recruitment process, especially in areas difficult to get employees who have the required competence. In fact, lack of welfare among employees is not able to change people’s way of thinking as community servant and they tend to corrupt which leads to unqualified service.
In the doctoral promotion exam, Taufiq Effendi graduated cum laude. Chairman of the examiners team Marsudi Triamojo mentioned that Taufiq Effendi is the 63rd doctor from Faculty of Law and the 1362nd graduated from UGM. Attending the event were Minister of Cooperatives and SMEs of Indonesia, Dr. Syarifuddin Hasan, MM, MBA, Chairman of the House of Representatives’ Commission II, Chairuman Harahap, former Rector of UGM, Prof. Dr. Sofian Effendi, MPIA, and Constitutional law observer, Prof. Dr. Harun Al-Rasyid.