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TEMPO.CO, Jakarta - President Prabowo Subianto stated that certain Indonesian bureaucrats are making it difficult for foreign businessmen to obtain permits. This difficulty, according to Prabowo, has led to a surge in complaints from investors.
"Many foreign investors complain that securing permits in Indonesia takes a very long time, with so many requirements. Sometimes, these permits are irrational," Prabowo said at the Attorney General's Office in Jakarta on Wednesday, May 13, 2026.
Prabowo expressed bewilderment that such practices persist despite government efforts to streamline the licensing regime. He noted that even after permits are simplified, they are often complicated again through various technical regulations.
"The tendency for over-regulation is an initiative by bureaucrats to—to be honest—seek opportunities. Some will eventually ask for kickbacks or money to expedite the issuance of permits," Prabowo remarked.
The Gerindra Party Chair mentioned receiving grievances from a group of entrepreneurs eager to invest in Indonesia but stymied by red tape. He revealed that necessary permits often take one to two years to materialize, whereas neighboring countries can issue the same documentation within two weeks.
Therefore, Prabowo intends to look toward regional peers where licensing is more efficient. "If they can issue permits within two weeks, why does it take us two years?" he questioned.
The China Chamber of Commerce recently sent a letter to President Prabowo outlining various complaints regarding the Indonesian investment climate. In the letter, which circulated on Tuesday, May 12, 2026, Chinese business leaders highlighted several policies they believe are burdening the private sector.
Among the issues raised by the Chinese Chamber of Commerce were bureaucratic hurdles, a hike in mineral royalties, regulatory uncertainty, and perceived excessive law enforcement.
The Chamber asserted that their investments contribute to national development; however, they believed that the business community has recently faced increasingly greater challenges in Indonesia.
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