Good Regulatory Practices to Support Small and Medium Enterprises in Southeast Asia

image of Good Regulatory Practices to Support Small and Medium Enterprises in Southeast Asia

Small and medium-sized enterprises (SMEs) can find it challenging to cope and comply with regulations and adapt regulatory changes. Good regulatory practice (GRP) helps create a stable and enabling regulatory environment for investment, trade, and entrepreneurhsip, and thus supports healthy economies and regional competitiveness. This report is the first comprehensive stock-taking of GRP implementation in Southeast Asia to support local SMEs and their integration into global value chains. For each of the ten countries of the Association of Southeast Asian Nations (ASEAN), the report provides examples of GRP tools and approaches in areas such as administrative burden reduction, e-government, regulatory impact assessment, ex post evaluation, and stakeholder consultation. The report also includes an overview of collective efforts pursued at the ASEAN level to promote the GRP agenda across the region.



Indonesia has one of the most complex regulatory environments in Association of Southeast Asian Nations (ASEAN) for small and medium-sized enterprises (SMEs), with 22 ministries involved in regulatory policymaking and applying various regulatory policy processes and tools. The government recognises the importance of simplifying and improving administrative processes and regulations. As such, it has mandated regulatory impact analysis to be undertaken for all new regulations as of late 2017, although evaluations for existing regulations continue to be done on an ad hoc basis. Indonesia is advanced among ASEAN countries in using information and communication technologies (ICT) in regulatory delivery. There is an abundance of information made available online, with rules and regulations made available through government platforms alongside dedicated non-governmental fora for seeking expert comment or responding to regulations. The government is streamlining its digital portals for business licensing and investment procedures and is making good progress in developing an integrated portal to help businesses get all the permits and information they need in one platform.


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