PEMBATALAN BERBAGAI PERATURAN DAERAH YANG MEMPENGARUHI PELAYANAN PUBLIK DUNIA BISNIS DAN INVESTASI TINJAUAN EKONOMI DAN BISNIS

Abstract

This article discusses about the cancellation of various local regulations by the Central Government
in Jakarta which is inhibited the rate of investment in local region. It is contrary to higher level of
regulations and is contrary to the public interest. According to Act (UU) No. 23 year 2014 about
Local Government, the regional policies (Perda or Perkada) can be cancelled by the Central
Government (Minister of Home Affairs) totally and/or partially. The Ministry of Home Affairs
issued instruction of Minister of Home Affairs No. 582/476/SJ on February 16th, 2016 about
revocation/changing of Local Government Regulations (Perda) and announced the cancellation of
various local regulations including Perda in Regencies, City and East Nusa Tenggara Province.
The Central Government had cancelled 3,143 of Perda including 45 of Perda in City and Regencies
in East Nusa Tenggara. The used method for discussion in this article is data compilation study
from another articles written by the author previously. Investigation showed that the Region
Autonomy Policies was suspected increasing the transaction cost in investing process both foreign
investment and domestic investment. Investors who applied the licensing faced many charges which
are relatively greater than before decentralized authority. In addition, the services by investment
organization authority in the region charged uncertainty cost and time of completion of the licensing
process. Therefore, the Central Government evaluated the various local regulations which hamper
investment in the local area. Cancellation of various Perda by the Central Government impacted on
economic and business sectors in reducing bureaucracy regulatory barriers and the number of
charges which burden the business sector, thus it will encourage investment in the region. However,
the cancellation has reduced local government’s authority for gaining financial from Perda that
will reduce the regional revenues
Keywords: Local regulations,busines sector, public services, investment