Identification of Regulatory and Institutional Issues in Industry

Commission VII of the House of Representatives of the Republic of Indonesia (“DPR RI”) is currently discussing solutions to improve the competitiveness of domestic industry through a special Working Committee (“Panja”). Deputy Chairman of Commission VII of the DPR RI, Lamhot Sinaga, stated that this Panja will produce policy recommendations to improve industrial competitiveness.

“The recommendations issued by the Panja are aimed at making our industrial competitiveness competitive both nationally and internationally,” said Lamhot.

The Director-General of Metal, Machinery, Transportation Equipment, and Electronics Industries (“ILMATE”) of the Ministry of Industry (“Kemenperin”), Setia Diarta, revealed a number of challenges in industrial supervision and control. One of them is the potential conflict of interest between the coaching and supervisory functions within the ministry, so that not all directorates are able to carry out their supervisory duties optimally.

From an institutional perspective, Kemenperin also acknowledges that supervision and control (“Wasdal”) are not yet complete and that the institutional position does not yet fully support this, including the e-Wasdal system. Limited human resources also weaken the effectiveness of supervision, even though technical regulations are actually available.

“We also face several challenges, particularly the rapid changes in regulations and the complexity of their implementation,” explained Setia.