Regulations must keep up with development dynamics

Development is a complex and dynamic process. Globalization, for example, is no longer about free trade and investment but also a continuously-free flow of information under inter-connected social network. On the other hand, at the local scale, public participation under the democratic process has become increasingly a norm in Indonesia and other developing countries. Sustainable Development Goals (SDGs) is a new development agenda that was born in this new environment.

Rising prosperity for all is the frontline of SDGs. Essential to this process is inclusive economic growth through increasing competitiveness and economic efficiency. Under imperfect system of the market economy, regulation can function to protect competition, improve efficiency and create enabling environment for innovation. We can also create regulations to prevent the market process from creating unfair outcomes. Regulatory reform is a process of improving existing regulations so they can keep up with that challenges.

Regulatory reform has been an important agenda in Indonesia. However, its process faces so many challenges. This issue is the topic of the recent seminar held on 13 October 2016 in Bandung, hosted by three institutions: Ministry of National Development Planning (BAPPENAS), Faculty of Law and SDGs Center of Universitas Padjadjaran. The seminar featured prominent speakers from various institutions in Indonesia including Dr. Diani Sadiawati (BAPPENAS), Dr. Susi Dwi Haryanti (Universitas Padjadjaran), Prof. Bernadette Rabbiani (Universitas Sriwijaya), Ms. Ineu Purwadewi Sundari (DPRD Jabar), Prof. Agus Pramusinto (Universitas Gadjah Mada) and Prof. R. Benny Riyanto (Universitas Diponegoro).

One of the main conclusion highlighted during the seminar is that achieving SDGs is more difficult in an increasingly more complex and dynamic world. Bad regulations can become a burden to this process by reducing efficiency and discouraging innovation. Good regulations need to keep up with this development dynamics.

Concrete recommendations include speeding-up legislation process by encouraging parliaments (instead of government) to initiate more legislations; improving the quality of bureaucracy as the administrator of regulations by improving the existing incentive system; insitutionalizing regular evaluations of existing regulations; enhancing participation in the legislative process to improve the sense-of-ownership and understanding of the spirit and mechanism of the regulations.

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