Adrian Wail Akhlas, Jakarta – Indonesia's ranking in the World Bank's Ease of Doing Business (EODB) index has remained stagnant at 73rd despite efforts to attract investment by removing unfriendly regulations.
The country's ranking in the 2020 EODB index cuts against President Joko "Jokowi" Widodo's target for Indonesia to be ranked 40th next year.
According to the report, released on Thursday by the Washington, DC-based lender, Indonesia scored 69.6 out of 100, an increase of 1.64 points. The increase was slightly higher than last year's increase of 1.42 points to 67.96.
In the report, the World Bank highlighted Indonesia's rigid employment and minimum wage regulations.
"Strict employment protection legislation shapes firms' incentives to enter and exit the economy, which in turn has implications for job creation and economic growth [...] a 10 percentage-point increase in the minimum wage in Indonesia was associated with a 0.8-percentage point decrease in employment on average," the report stated.
It also highlighted Indonesia's reforms regarding starting businesses, paying taxes, trading across borders, improving electricity and enforcing contracts.
New Zealand topped the 2020 index with a score of 86.8, an increase of 0.21 points from 2019, followed by Singapore, Hong Kong, China, Denmark and South Korea.