Jakarta: Indonesia has been unmoved at 73rd among 190 nations in the World Bank's 2020 Ease of Doing Business Ranking.
According to the World Bank's Doing Business 2020 Study, Indonesia's ease of doing business score stood at 69.6, increasing by 1.64 points compared to the previous year.
Nevertheless, Indonesia was ranked in the top 40 in several areas, including Getting Electricity (33), Protecting Minority Investors (37) and Resolving Insolvency (38).
The report discussed employment regulations in Indonesia. The introduction of a minimum wage in Indonesia resulted in a reduction in both hours of work and employment. 10-percentage-point increase in the minimum wage in Indonesia was associated with a 0.8-percentage-point decrease in employment on average in a given province.
"Among lower-middle-income economies in East Asia and the Pacific, Indonesia is one of the economies with the most
rigid employment regulation, particularly on hiring," the report said.
Nevertheless, the report also praised economic reforms in the Southeast Asian country. Indonesia made starting a business easier by introducing an online platform for business licensing and replacing hard copies. The country also made paying taxes easier by implementing an online filing and payment system for the major taxes.
New Zealand was ranked first in the 2020 Ease of Doing Business Ranking. The country was followed by Singapore, Hong Kong, China, Denmark and South Korea.