Satu Atap or Satu Pintu? Small business start-ups, one-stop shops and regulatory reform in Indonesia

Although it is the largest neighbour of both Australia and New Zealand, relatively little is known in the local small business research community about the status and issues confronting micro and small-sized enterprises in Indonesia. There are more than 56 million micro, small and medium enterprises (MSME) operating in Indonesia. More than a million new firms commence trading each year, but the country continues to rank quite poorly on global comparisons about the ease of business formation. This paper discusses some of the attempts by government to reduce both the number and cost of registration steps in recent years, with a special focus on reforms in Jakarta. A key tool has been the development of so-called one-stop shops, with either a satu atap (one roof) or satu pintu (one door) approach. In a nation with highly devolved political and administrative structures, though, successfully implementing these reforms can be difficult.