Bernarda Rurit, Yogyakarta – The Home Affairs Department has cancelled 968 of 6,500 regional regulations and draft regulations made by regional governments throughout Indonesia.

Djiman Murdiman Sarosa, Director General for Regional Development at the Home Affairs Department, said that the regulations were cancelled as it was considered they could hamper investment in the regions.

"If many of them were related to illegal levies, why would investors be interested," Djiman told reporters in Yogyakarta, yesterday (6/8).

He explained that the 6,500 regional regulations had been made within the last two years.

In addition to hampering regional investment, these also were not in line with higher level regulations like government regulations, state decrees and presidential decrees.

Indicators used to cancel the regulations were high retribution, high fees for permit arrangements, and down-payments for investor. Djiman said that regional governments had said that the high price of fees was because they wanted to increase their regional revenues.

In order to create a better investment climate, Djiman continued, the government has set up integrated one-door service centers to simplify the issue of licenses for investors. There are now 289 regions applying these integrated one-door services.

Djiman mentioned Yogyakarta as the best city in Indonesia for applying this one-door service. Sragen is the best Regency and has removed fees for permission arrangement for small- and medium-sized enterprises. "This will all help attract investors," said Dliman.

He suggested that good city planning was another way to attract investors, mentioning Cilegon and Batam as references. "Good city planning will make investors feel comfortable," he said.