ASIATODAY.ID, PARIS – The Organization for Economic Co-operation and Development (OECD) launched the latest Product Market Regulation (PMR) survey at the “Launch of OECD Product Market Regulation Indicators 2023-2024” event on Wednesday 10 July 2024 in Paris, France.
This survey is an initiative to identify how a country creates a conducive business environment, increases transparency in the business world, and supports the creation of quality jobs. This PMR survey was conducted in 38 OECD member countries and several partner countries, including Indonesia.
As an appreciation for the success in carrying out policy reform, Indonesia was invited by the OECD to be a speaker at the PMR release. Indonesia was invited along with Greece and Peru, which also succeeded in carrying out policy reforms.
Deputy for Macroeconomic and Financial Coordination at the Coordinating Ministry for the Indonesian Economy, Ferry Irawan, who was present representing the Coordinating Minister for the Economy Airlangga Hartarto, conveyed Indonesia’s commitment and success in implementing structural reforms.
“Implementation of the Job Creation Law has proven effective, as evidenced by the increase in Indonesia’s PMR indicators,” said Deputy Ferry.
Since 1998, Indonesia has implemented a series of structural reforms to strengthen governance, decentralize fiscal management, combat corruption, improve financial services, and ensure economic resilience through various legislative and regulatory measures.
In 2021, through an omnibus law approach, Indonesia will revise 79 laws through the Job Creation Law, which consists of 186 articles and 15 chapters divided into 11 clusters.
This cluster includes improving the investment ecosystem and business activities, business licensing, employment, research and innovation support, government administration, and ease of doing business.
“Success in improving the PMR indicator is a strategic step in line with Indonesia’s aspirations to become a full member of the OECD, which will further strengthen international cooperation and national economic competitiveness. “This success will not only strengthen Indonesia’s position at the global level, but also strengthen the ongoing OECD membership accession efforts,” said Deputy Ferry.
Indonesia will continue to pursue these reforms by using OECD accession as a benchmark for further improvements. This event also emphasizes Indonesia’s commitment to continuing structural reforms to support healthy business competition and sustainable economic growth.
The 2024 Indonesian PMR survey showed very good and positive results, with an increase in the PMR index from 2.79 in 2021 to 2.2 in 2024 (scale 0-6, where 0 indicates more competition-friendly regulations). Significant improvements can be seen in a number of indicators, including more transparent procurement of goods and services, increased public participation in regulations, and the use of more flexible regulatory evaluation methods.
Structural reforms have also succeeded in encouraging open competition in the railway sector, reducing barriers to foreign investment and international trade, as well as simplifying risk-based business licensing through the Online Single Submission Risk-Based Approach (OSS RBA) system.
“There is no country among the 47 whose current regulations are less competition friendly than in 2018, when the Product Market Regulation indicators were last collected. Several countries have made significant progress, including Indonesia, Brazil, Peru and Greece. “However, there is still room for further reform in these countries, because their regulations are still stricter than the average country in the OECD,” concluded OECD Secretary General Mathias Cormann. (AT Network)
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