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Doing Business in Indonesia: Legal and Bureaucratic Constraints

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Author Info
Ross H. McLeod ()

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Abstract

The World Bank's new series of Doing Business reports attempt to measure the relative ease of doing business in countries around the world. The output of this research is a set of rankings that enable each country to see how it looks relative to the others from the point of view of private sector businesses. This paper highlights a number of concerns about the Doing Business methodology, and presents a critique of the 'law and finance' view regarding the influence of legal system origins on countries' economic performance, which was highly influential in the first of the Doing Business reports. Selected data from the 2006 report are used to explain why Indonesia is having difficulty getting back to Soeharto-era rates of economic growth. The report's findings in relation to Indonesia are then interpreted within the framework of an analysis of the way the Soeharto 'franchise' operated.

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File URL: http://rspas.anu.edu.au/economics/publish/papers/wp2006/wp-econ-2006-12.pdf
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Publisher Info
Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number 2006-12.

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Length: 39 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:pas:papers:2006-12

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Related research
Keywords: business regulation; contract enforcement; law and finance; legal heritage;

Find related papers by JEL classification:
K2 - Law and Economics - - Regulation and Business Law
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
P14 - Economic Systems - - Capitalist Systems - - - Property Rights
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rafael LaPorta & Florencio Lopez de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. "Legal Determinants of External Finance," Harvard Institute of Economic Research Working Papers 1788, Harvard - Institute of Economic Research.
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  2. Ross H. McLeod, 1998. "From Crisis to Cataclysm? The Mismanagement of Indonesia's Economic Ailments," The World Economy, Blackwell Publishing, vol. 21(7), pages 913-930, 09. [Downloadable!] (restricted)
  3. Sisira Jayasuriya & Chris Manning, 1988. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 24(2), pages 3-41, August. [Downloadable!] (restricted)
  4. Ross Mcleod, 2005. "The struggle to regain effective government under democracy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 41(3), pages 367-386, December. [Downloadable!] (restricted)
  5. Chris Manning, 1996. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 32(2), pages 3-43, August. [Downloadable!] (restricted)
  6. Thomas Tomich, 1992. "Survey of Recent Developments 1," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 28(3), pages 3-39, December. [Downloadable!] (restricted)
  7. Pierre Eng, 1993. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 29(3), pages 3-35, December. [Downloadable!] (restricted)
  8. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December. [Downloadable!] (restricted)
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  9. Man Pangestu & Iwan Azis, 1994. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 30(2), pages 3-47, August. [Downloadable!] (restricted)
  10. Thorsten Beck & Ross Levine, 2003. "Legal Institutions and Financial Development," NBER Working Papers 10126, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Johnson, Simon & Boone, Peter & Breach, Alasdair & Friedman, Eric, 2000. "Corporate governance in the Asian financial crisis," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 141-186. [Downloadable!] (restricted)
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