Tulisan dibawah ini kemungkinan besar memang begitu. 
Tetapi jangan terlalu senang dulu, karena benang kusut
birokrasi di Indonesia tidak terlalu jauh berbeda
dengan di India.  Anggap saja ini pandangan orang
asing.

Salam,   
RM   
  
-------------------------------------- 
 
from the December 16, 2004 edition -
http://www.csmonitor.com/2004/1216/p05s01-wosc.html 

Opening shop in India? Bring scissors to cut red tape.
By Scott Baldauf | Staff writer of The Christian
Science Monitor 

NEW DELHI - So you want to start a business in India?
Great. First jot down these rules. You will have to
abide by them in order to get your permits from the
Indian government. (And the state government, and the
city government, too.)

Rule 1. Don't grow too large. Any business with more
than 10 employees will be covered by the Indian Labor
Act, which requires strict hiring and firing rules,
short working hours, and generous pension funds.

Rule 2. Leave your accounting software at home. The
government requires that all bank records, for
instance, be kept in books, in duplicate. Computers
didn't exist when the Constitution was written, so
those records are invalid.

Rule 3. Don't forget the Government Seal Act of 1862.
A holdover from British colonial rule, all Indian
businessmen and government agents must be able to seal
certain documents, with wax, with the imprint of the
East India Company. The British are gone, the East
India Company is, too, but the act remains on the
books.

If all of this is too complicated, business experts
say, a frequent practice is to offer local government
officials a small bribe.

Much has been done in the past decade to simplify
business rules here - to the applause of the World
Bank and foreign investors. The new government last
month made clear that economic reform would be its top
priority. But the challenges of giving India an
economic makeover are vast. For one, many bureaucrats
like to keep things as they are, since it is how they
derive their power and income. Also, many rules
protect Indian businesses from foreign markets, and
removing them is cause for concern.

But as a new World Bank report makes clear, India must
improve its investment climate soon - from easing
regulations to improving roads, airports, and power
grids - or it will remain mired in poverty for another
century at least.

"Until India does more to simplify its regulatory
environment and improve its infrastructure, it will
never achieve [the government's goal of] 8 percent
growth," says one Western diplomat based in Delhi,
speaking privately. Many businesses are bullish on
India today because of the potential they see, he
adds, but "few of those businesses are finding profits
today."

India's government leaders - many of whom set India on
its current reform path after a 40-year flirtation
with socialism - seem to recognize how much work they
have to do. Last month, Montek Singh Ahluwalia, the
chairman of the Planning Commission, India's top
economic panel, admitted that it would be difficult to
meet his own government's goal. But he promised more
reforms and economic benefits to follow.

Meanwhile, as foreign investors have pumped nearly $3
billion in investments this year, India-based
businesses complain that the country is still far too
regulated. In a survey of business owners conducted
for the World Bank, 51 percent of respondents said
that regulations and corruption were "major or severe
obstacles to growth." One-third also cited poor
infrastructure, such as bad roads or unreliable
electricity. On average, Indian manufacturers face 17
significant power outages per month, versus one per
month in Malaysia and around five in China, according
to the report. "As a result, almost 61 percent of all
Indian factories run their own generators. That's a
duplication that adds nearly 20 percent to many
businesses' operating costs," says Priya Basu, who
wrote the report.

The greatest regulatory impact comes from setting up
businesses and closing them down. It takes a
staggering 89 days to get government clearance to
start a business, compared with 41 days in China and
30 days in Malaysia. And it takes 10 years to complete
bankruptcy proceedings in India, compared with 2.4
years in China.

India has made progress over the past decade. The rate
of overstaffing - a result of labor laws that make it
difficult to fire workers - has dropped from 16.8
percent to 10.9 percent since 2001. The number of days
it takes for a shipment to clear customs has gone from
an average of 10 days to 7.3 days.

But Bibek Debroy, author of "In the Dock: Absurdities
of Indian Law," says that the sheer number of
regulations here leads to corruption. "With the
multiplicity of laws and regulatory agencies, you have
greater compliance costs," he says, using a euphemism
for "bribe." "At least if we begin to see some
movement on reform, then give it three or four years,
and these issues will no longer be that important."

Full HTML version of this story which may include
photos, graphics, and related links: www.csmonitor.com.


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