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ERIA Workshop on Good Regulatory Practices in Indonesia's Retail Services Sector

13 October 2023

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Jakarta, 13 October 2023: The Economic Research Institute for ASEAN and East Asia (ERIA) hosted a validation workshop on the study of the application of good regulatory practices (GRP) in the retail services sector, held in ERIA’s Annex Office in Jakarta, Indonesia. The workshop was led by Ridha A Nugraha, ERIA's external consultant and a senior lecturer of Law from Prasetiya Mulya University, and was the first in a series of three GRP workshops also held in Malaysia and Thailand.

The primary objective of the case study was to highlight the practical application of sound regulatory practices within the national context of the retail services sector. It aimed to establish a clear link between the implementation of effective regulatory practices at the national level and their impact on economic performance, and reductions in trade-related costs. This case study will form part of a handbook designed to assist World Trade Organisation (WTO) member countries in familiarising themselves with the WTO reference paper on services domestic regulation (2021).

The case study focuses on the retail service sector, with a particular emphasis on the reforms introduced through the utilisation of Indonesia's Online Single Submission (OSS) system. Indonesia boasts the highest digital economy value among ASEAN Member States, with projections indicating it could reach $124 billion by 2025.

The OSS system has significantly contributed to improving Indonesia's ease of doing business (EOBD) index. It has streamlined the process for businesses, particularly those operating in the retail services sector, making it easier to establish and operate businesses within the country. Previously, entrepreneurs were burdened with complex and time-consuming bureaucratic procedures, such as multiple visits to various government offices.

The case study underscores the importance of sharing Indonesia's OSS reform experience with other developing nations, as it has effectively reduced bureaucratic hurdles related to investment and business establishment, leading to enhanced overall economic performance.

The validation workshop brought together a diverse group of participants, including business stakeholders, academics, and legal experts. It is an integral part of ERIA's collaborative research project with the World Trade Organisation (WTO) and the World Bank to develop the Handbook of Good Regulatory Practices to facilitate services trade in selected ASEAN countries.

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