REPUBLIC OF INDONESIA RESULTS OF THE RURAL INVESTMENT CLIMATE ASSESSMENT (RICA) IN INDONESIA - FINAL REPORT June 2008 Report no. 44033 - 10 THE WORLD BANK THE WORLD BANK OFFICE JAKARTA Jakarta Stock Exchange Building Tower II/12th FI. JI. Jend. Sudirman Kav. 52-53 Jakarta 12910 Tel: (6221) 5299-3000 Fax: (6221) 5299-3111 Website: http://www.worldbank.org/id Rural Investment Climate Assessment Website: http://www.worldba n k.org/id/rica THE WORLD BANK 1818 H Street N.W. Washington, D.C. 20433, U.s.A. Tel: (202) 458-1876 Fax: (202) 522-1557/1560 Email: feedback@worldbank.org Website: http://www.worldbank.org Printed in June 2008 This volume is a product of staff of the World Bank. The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement of acceptance of such boundaries ACKNOWLEDGMENTS This report is a product of the World Bank's Rural Development, Natural Resources and Environment (EASRE) and Poverty F.eduction and Economic Management (EASPR) Sector Units of the East Asia and Pacific Region. The team leader for this report was Shobha Shetty (Sr. Economist, EASRE). Neil McCulloch (Director, Economic Programs, The Asia I=oundation) prOVided valuable inputs and gUidance. The principal authors of the report are Gunther Schulze and Susanne Quadros of the University of Freiburg, Germany. Dewi Sutisna (EAClF) provided valuable administrative assistancE:. This stud\' was supported by the World Bank-Dutch Trust Fund (WBDTF) for Institutional Development and Capacity Building f)rogram to Improve Indonesia's Trade Policy. Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report iii Executive Summary The rural investment climate survey carried out in 2006 sampled more than 2,500 predominantly very small firms in six rural districts in Indonesia [Labuhan Batu (North Sumatra), Kutai Kalimantan), Barru (South Sulawesi), Malang Java), Badung (Bali), Sumbawa (NTB)llt compiled information on labor force, credit, infrastructure, marketing and competition, the diffusion oftechnical knowledge, local governance and the main obstacles that firms face. The key findings are: · There is a strong rural-urban divide in educational attainment of workers and huge differences between districts with Malang being particularly disadvantaged. Workers in household enterprises, the production sector and part time workers are significantly undereducated. · A significant percentage of enterprises are constrained by the labor market as they would like to increase their staff if they could. This is particularly so for firms in urban areas and firms with five employees or more. These firms experience a higher and increasing duration for hiring new staff. Hardly any firms ever fire staff. · Only 13 % of all firms applied for credit in the last twelve months with most of the applications being approved; yet 54 % of all firms state that they need more funds to increase capital and to purchase materials. Rural and micro firms are particularly in need of additional funds. The firms are credit constrained mainly because of complicated procedures. Half of the firms that do not apply for formal loans state this as an obstacle compared to 17 % that are lacking collateral and 14 % that regard high interest rates as an obstacle. Insufficient collateral prevents mainly small firms from applying for loans. · Many small firms are hugely undercapitalized; that refers to firms in the trade sector in particular. · 36 % of all firms have no electricity with micro firms being particularly affected. Reliability of electricity is a major concern (esp. in Sumbawa), cost of electricity is another. Tax payments are highly skewed: Only medium and large firms pay a large share of their taxes to the central government, whereas for small and micro-enterprises the motor vehicle tax and levies from village and sub-district officials playa large role. All of the payments have a highly skewed distribution with many firms (43%) paying no levies and fees at aiL · Major obstacles to operation and growth of the firms are (in order of importance): ~ credit constraints (mainly small and micro firms), ~ demand constraints (micro- and small firms), ~ bad governance, Le. corruption, uncertain policies and restrictive regulations (all firms), ~ lacking transport infrastructure (rural firms), traffic congestion (medium and large firms) and ~ costly and unreliable electricity. iv Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report Table of Contents Introduction - The Indonesian Rural Investment Climate Survey ......................................................"...................................... Key Findings ,................................................................................................................................................................................................................ 4 Major Obstacles to Growth and Development of Firms .................................................................................................................... 24 APPENDIX Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report V vi Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report ~ -.-.-~-~-.- .. ~--- 1. Introduction -The Indonesian Rural Investment Climate Survey 1.1 Overview The Indonesian Rural Investment Climate Survey (RICS) is an in-depth, quantitative surveyof2549 non-farm enterprises, 2782 hOJseholds and 149 communities in 6 rural districts (Kabupaten). The survey was conducted in January/February 2006 and comprised a linked survey of non-farm enterprises and households. Non-farm enterprises are defined as all entelOrises except those undertaking primary agriculture, forestry and fishery activities, although firms which underta=100 1 9 0.11 Type offirm Standalone 299 618 0.48 HHEnterprise 1,053 1)57 0.60 Listed 50 146 0.34 Sector Production 159 283 0.56 Trade 793 1,355 0.59 Services 450 883 0.51 Total 1402 2,460 057 The share of firms that have unpaid workers is particularly large in Malang; it is still beyond average in Sumbawa. Rural and urban firms differ not very much, but the size of the firm has a strong influence on the existence of unpaid workers as larger firms are less likely to have unpaid workers. Unsurprisingly, household enterprises have the highest share of unpaid workers, listed firms the lowest. The average extent to which firms employ any given unpaid worker differs not very much by sector, firm size, and Kabupaten averages are around 10.5 to 11 months per worker for the different cuts with rural firms having a lower value at 10.5 months than urban firms at 11.2 months. The median is consistently 12 months; the standard deviation however is at 2.5 months indicating a significant variation within groups. The number of days per month cluster 6 Aspects coverec: Q~es.tionna;r ,V,odS: B!ock X.A, :3:oc~ X.B. Block X.C ,Block nl arj Block XI:I.,t.,. 4 Result of The Rural Investment Climate Assessmert (RICA) in Indonesia - Final Report around the value 25 for all cuts and the number of hours per day worked were 8.3. There is little variation between 2002 and 2005 except for the hours worked per day they have gone up by one hour on average. Paid workers - full-time and part-time Part-time workers account for 22 % of the labor force; they are significantly more frequent in Sumbawa and Barru, and in ruralcreas. Part-time workers have a larger share in household enterprises, in larger firms, and in production. The overall share of female workers is higher in full-time employment than in part-time employment (39 and 25 percent, respectively), but there is a huge variation across districts and sectors. Table 6: Full-time, part-time workers and share offemale workers No. of workers Share of Female share of Full-time Part-time Total Full-time Part-time Full-time Part-time workers workers workers workers Kabupaten Badunq 2376 506 2882 0.82 0.18 45.72 29.24 Kutai K 724 171 895 0.81 0.19 3853 4455 Sumbavva 306 188 494 0.62 0.38 18.17 25.39 L. Batu 250 88 338 0.74 0.26 31.33 32.05 Malanc: 1228 170 1398 0.88 0.12 31.94 8.87 Barru 411 365 776 053 0.47 17.95 4.03 Region Urban 3981 926 4907 0.81 0.19 39.66 35.99 Rural 1314 562 1876 0.70 0.30 35.37 12.07 Size of firm (by employment) 1-4 645 99 744 0.87 0.13 43.05 28.71 5-19 1232 351 1583 0.78 0.22 3259 23.32 20-99 1271 685 1956 0.65 0.35 34.78 13.08 >=100 2147 353 2500 0.86 0.14 50.92 37.69 Type of firm Standalone 1323 293 1616 0.82 0.18 42.16 28.47 HHEnterprise 763 407 1170 0.65 0.35 33.73 22.65 Registered 3209 788 3997 0.80 0.20 31.01 24.81 Sector Production 2199 1041 3240 0.68 0.32 23.43 8.25 Trade 1861 206 2067 0.90 0.10 44.42 22.42 Services 1235 241 1476 0.84 0.16 36.76 33.85 Total 5295 1488 6783 0.78 0.22 38.67 24.77 Full-time workers are significantly better educated than part-time workers. While half of all full-time workers have finished high school, less than a third of part-time workers have the same educational attainment. Likewise, around five percent of full-time workers are illiterate, for part-time workers the figure is twice as high Tables 7 and 8). There j:i strong regional divide in educational attainment: For instance, rural workers are much more likely to be illiterate than urban workers (9 percent versus 4 percent for full-time workers and 19 % versus 6 % for part-time worker:;), They are much less likely to have finished high school - while 56 % of urban full-time workers have finished high scnool, only 29 % of their rural counterparts have the same qualification. For part-time workers the difference is even more pronounced. Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 5 Larger firms tend to have a substantially better educational profile of their work force than smaller firms. Educational attainment is particularly low in household enterprises and in the production sector. There are significant differences at the Kabupaten level. Firms in Badung and Barru have relatively highly educated full time employees, whereas Kutai has a large share of illiterate workers. Malang stands out with a very high percentage of illiterate full-time workers (17 %) and a very low percentage of high school graduates of only 14 %. Table 7: Full-time workers by educational level (weighted sample) The picture largely carries over to part-time workers, except for their overall lower educational attainment. The rural urban divide and the size effect are stronger than for full-time workers; likewise household enterprises have an even worse educational profile compared to other type of firms and so has the production sector compared to services and trade. Malang still stands out as a particularly undereducated district, but the share of illiterate workers is even higher in Kutai Kertanegara and particularly in Barru (30 %). Barru and Maiang have a very low number of high school graduates among their part-time workers. 6 Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report - - _...._-_.... _ - - -- Table 8: Part-time workers by educational level (weighted sarno/e! Hiring and firing The employment dynamics differs significantly across Kabupaten and fi rm sizes. Table 9 shows the percentage of firms that have hired new skilled labor in 2005 and 2002 Table 9: Share of firms that hired skilled labor (in shares, weighted sample) .<.;" .P ..' ~;Y.f\1i,5~t;<·.i..t'.j; ;·;.f'.il~i; f~&j Kabupaten Badunq 0.080 0.036 Kutai K,::'rtanegara 0.066 0.059 Sumbawa 0.013 0.015 Labuar Batu 0.034 0.019 MalanCi 0.001 0.002 Barru 0.004 0.002 Region Rural 0.020 0.014 Urban 0.057 0.Q28 Size of firm (by employment) 1-4 0.014 0.017 5-19 0.155 0.036 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report 7 20-99 0.601 0.261 >=100 0.522 0.506 Type of firm Stand alone 0.094 0.029 HHEnterprise 0.020 0.018 Listed 0.122 0.136 Total 0.038 0.020 There is a substantial amount of variation, also over time, between districts in the percentage of firms that hired skilled labor with Badung, Kutai and to a lesser extent Labuan Batu hiring more than Barru and Malang. Firms in urban areas are more than double as likely to hire skilled labor. Most importantly, there is a very strong size effect! More than half of all firms with 20 workers or more stated that they had hired skilled labor in 2005, whereas only 16 % of firms with 5 to 19 workers and only one percent of firms with less than five workers had done so. Unsurprisingly, listed firms are significantly more likely to hire skilled workers than standalone firms, which in turn are more likely than household enterprises to do so. These results mirror the existing educational profile (see above). Sectoral differences are negligible. Also, the time to hire and fire a worker differs substantially, pOinting to different local labor markets and different regulations/customs. Table 70: Average number ofdays to hire and fire employees (weighted sample) Average number of days to Hire a new employee Fire an employee 2005 2002 2005 2002 Kabupaten Badung 15.8 4.3 21.6 30.4 Kutai K. 4.9 6.4 7.9 7.9 Sumbawa 12.6 11.6 3.2 4.3 Labuan Batu 7.9 1.5 10.6 9.2 Malanq 1.6 2.6 4.0 27.0 Barru 5.1 0 1.6 Region Urban 14.4 4.0 5.1 23.8 Rural 7.3 6.3 11.3 13.3 Size of firm 1-4 5.2 2.4 3.7 10.9 5-19 15.3 11.4 18.1 11.8 20-99 17.9 8.0 12.8 56.5 >=100 13.7 14.1 30 30 Type of firm Standalone 14.0 6.4 13.8 24.9 HHEnterprise 10.0 4.0 5.6 12.8 Registered 16.5 11.8 18.7 23.8 Sector Production 16.8 6.1 8.6 25.0 Trade 8.6 4.0 3.0 34.2 Services 16.8 5.1 11.3 6.9 Total 12.4 4.9 8.9 16.7 8 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report Overall, the time to find a new employee has increased dramatically from 5 days to more than 12 days. Behind this increase is hidden a wide variety of different labor market situations. In Kutai, Malang, and Barru firms find new employees very it takes them no more than 5 days, in Sumbawa and Badung it takes 13 and 16 days, respectively. In Badung in particular, but also in Labuan Batu things have changed to the worse from the business perspective, indicating a change in labor market situation (higher employment). This "deterioration" from the employers' perspective has predominantly been an urban phenomenon, where time requirement has qone up by ten days whereas it has remained almost the same in rural areas. Moreover, household enterprises and very small firms (below 5 workers) find it significantly easier to hire workers and so do tr,de firms. Long durations tc find new workers indicate disequilibrium in the labor market. People were asked how they would like to change their number of employees if they could do so freely. Table 13: Desired changes in employment (in shares, weighted sample) Want to hire more people No change Reduce no. of emptoyees Kabupaten Badunc .14 .85 .014 Kutai .12 .87 .006 Sumbawa .095 .90 :009 Labuan Batu .041 .96 .003 Malanq .019 .98 0.001 Barru .035 .95 .016 Region Urban .11 .88 .016 Rural .051 .95 .003 Firm size 1-4 .0595 .9358 .0047 5-19 .1604 .8066 .033 20-99 .1742 .7405 .0853 100 or more .3178 5557 .1265 Type of firm Standa!one .1512 .8436 .0052 HHEnterprise .0546 .9351 .0104 Listed .081 .8852 .0338 Total .078 .91 .009 Especially in :hose districts where the time to hire a worker is long a larger share of businesses would like to increase their wC'kfor:e, indicating that are constrained by the labor market conditions. This is particularly evident in the urban areas end very pronounced for large firms! The tim:~ to fire a worker has almost halved between 2002 and 2005. No clear pattern emerges with respect to the time it LIkes to fire a worker and changes seem huge within three years. Note, however, that the share of firms that state to have ever fired an unskilled employee is extremely low. It ranges from 2 % in Sumbawa to 0.1 % in Malang. Only very few fi rms actually have experience in firi ng employees and hence the information received may not be very reliable. Almost a third of all large firms seem to be constrained by the availability of labor and 16 to 17 % of small and medium firms (5 to 99 employees) would like to hire more people. That points towards a severe restriction of business activity and groNth for firms beyond the micro size! Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 9 2.2 Credit 7 Over all firms, the initial capital consists to 55% of own assets originating from non-agricultural production. 24% stem from own assets of agricultural production, around 8% are formal loans, another 8% are informal loans and around 5% are Figure 1: Initial capital by source, aggregate for all firms Initial capital by source 100% _ informal loan 8, 80% - 111 c (I) ... u 60% 40% III formal loan (I) 0.. 20% _ own money/assets from 0% non-agriculture : _ own money/assets from . agriculture Overall firms 2.2.1 Credit applications and approvals Only slightly more than twenty percent of all firms had currently some form of loan or credit to finance their operations. The source of the loans is given by the following table 14 Table 14: Source of existing loans (unweighted) Note that the number of firms that had received loans or credit from more than one type of source is very small; most firms take out loans from one type of source only. In the last 12 months 309 non-agricultural firms (12.3 % of all firms) have applied for loans, most ofthem for one loan only (96.5% of those applying). Out of the 309 applications forthe first loan 277 have been approved, 21 and 11 were still pending. That amounts to an approval rate of 93 %. Three quarters of all borrowers needed collateral, which consisted mainly of land (37%), houses (1 and buildings (12%). Urban firms are more likely to apply for a loan and they are more likely to have it approved. Q_estionnaice ModB Block III B. Block VB 19. alock VI!I. Block XII (F) & Block X!II A 10 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report There is no clear size effect: small, but not micro firms, are most likely to apply for loans and they are more likely to receive :hem as well. Ent~rprisetr~t,lps bytlln'lployment 1-4 5-19 20-99 >=100 Total Enterprises having applied for a loan 11.59% 19.96% 15.53% 6.37% 12.58% Loans approved 89.46% 96.31% 85.17% 100.00% 90.67% Loans approved in less than 1 week 65.50% 68.82% 77.57% 0.00% 66.25% Again there s a Nide variation across districts. Application rates are very high in Badung and very low in Labuan. Approv,;1 rates tend to be lower in districts with low application rates, esp. in Labuan and also in Barru.ln these districts it takes also much longer to process an application, which towards a lower effectiveness of the crediting process,~s. .. .... ~bt,lpaten Badung Kutai Sumbawa" Labusn MaJartg Barru Total Enterprises having 19.16% 10.94% 9.74% 5.76% 10.88% 13.86% 12.75% applied for a loan Loans .Jpproved 95.55% 89.13% 94.05% 78.62% 99.35% 78.37% 90.97% Loans ,lpproved in less 69.00% 51.96% 79.44% 35.72% 81.58% 45.27% 64.52% than 1 week Overall 57 tfi. of credit applications are decided within a week, another 30 percent within one month indicating a relative '{ spE·edy decision-making process. Rejections take a little more time than approvals. Listed f rms are less likely to apply for loans (9.6% compared to an average of 12.75%)' but have comparable approval rates. TI'ere are riuch fewer loan applications in the production sector and the approval rate in the service sector is significantly below average 8 , sector of firm. ProdJ.lctiijn. '.' '.' Trade Services Total Enterprises having applied for a loan 8.30% 14.01% 12.36% 12.75% Loans approved 96.50% 96.59% 80.61% 90.97% 2.2.2 Credit constraints Sectior 2.r lists only those firms that decided to apply for credit. The approval rates are high to little restrictions overall with the exception in the districts of Labuan and Barru and for the service sector. Yet this only applies to those firms that have decided to apply for credit (that is 13 % of the sample). There may be many more firms that do not apply for credit in anticipation of the denial of their application. A number of firms stated that they needed additional funding Table 19). More than half of the firms need funds V'ihich theywould mainly use to increase capital (42 %), buying material or stock up inventories (38%), purchasing equiprnent (8%) or buildings (5%). Rural firms are Significantly more disadvantaged than urban ones and there is a distinct variation across districts with Sumbawa, Labuan and Barru having more firms in need of additional funding. There i~, also a strong size effect with small and especially micro firms being more likely to need more funds. This result mirrors the resul::s from the formal loan data firms having better access to credit were less likely to state that are credit constrained. Q:..estioi 7 8 oCi<.V,11 (average 2nnua~ IntereSl rate of Indivicua' c~ecitor) IS wrorgly (oded iJS 'It is not dear whetrer zeros dC:1ote zero percent inte~e:,t rate o~ no credit given, TI'us, we do ~.now Lt'~:: prevails if firms bono'!'".' form Inciiv,cual cred:;:ors Result of The Rural Investment Clirr·ate Assessment (RICA) in Indonesia Final Report 11 Table 79: Firms that need additional funding ..... I Kabupaten Badung 32.11% Kutai K. 56.52% ! Sumbawa 73.74% Labuan B. 70.12% Malang 44.43% Barru 70.26% Region Urban 45.00% Rural 62.80% Size of firm (by employment) 1-4 56.22% 5-19 40.24% 20-99 32.86% >=100 6.37% Type of firm Standalone 39.12% Household ent. 58.44% Listed ent. 52.98% Sector Production 58.36% Trade 58.93% I Services 46.16% Total 54.25% In order to assess the relative capital needed we calculated the amount that firms stated to need relative to their current capital (own funds receivables, cash, savings and loans and credits). Our calculations include also those firms that did not require additional capital. This is given in Table 20. Table 20: Capital requirements relative to current capital In% Amount of mqney ne~e~:hobarrow as a percentaQeof total capital (mean) Kabupaten Badunq 113.59 Kutai K. 55.96 Sumbawa 39.74 Labuan B 998.50 Malang 108.33 Barru 267.69 Region Urban 110.07 Rural 405.47 Size of firm (by employment) 1-4 277.81 5-19 102.74 20-99 10.36 >=100 4.81 12 Result of The Rural Investment Climate Assessment (RICA) i:1 Indonesia Final Report Type of firm i Standalone 156.77 ·Household 278.91 Listed 189.69 Sector Production 25.05 Trade 397.44 Services 94.19 Total 253.58 Table 2C shows that many firms are highly undercapitalized, if we regard the stated need for additional funds as a goodndication for actual capital needs. Especially the small firms and thus the household firms are extremely undercapitalized and that refers predominantly to firms in the trade sector. Firms in Labuan are hugely in need of additional funds. On average (including those firms that do not need additional funds) firms need 2.5 times their current funds! That is a huge quantity and underscores the importance of credit restrictions as a major development obstacle. Only a c Jarter of all firms would apply for a loan from formal institutions,9 all others would not resort to the formal credit sector. The pattern is typical: large and urban firms are more likely to apply for a formal loan, household firms and firrr; in tile production sector are less likely to do so. Table 21: Share of firms that would apply to the formal credit sector for their additional funds i; ¥ ... .. A:pplyln9~·~forQ1_rft.... m:iafin$tltU~ion Kabupaten Badunq 49.46% ·Kutai K. 20.66% .Sumbawa 26.29% ! Labuan B 14.65% Malanq 21.97% i Barru 23.85% .Region Urban 35.24% Rural 19.92% Size of firm (by employment) 1-4 25.05% 5-19 35.02% 20-99 45.11% >=100 100.00% Type of firm Standalone 42.28% Household 22.98% Listed 29.42% Sector Production 11.29% Trade 28.98% Services 26.31% Total 25.93% This underscores credit constraints as major obstacle to growth and development. The reasons for these credit 9 Su"prisi 19ly, the ;urvey provides :-'0 answe' why fnns did not apply for a loan if they needed it and said that they would apply. Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 13 constraints are predominantly complicated procedures! Almost half of all firms stating that they would not apply for a loan at formal credit institutions administrative procedures as effective obstacle for credit applications. Interestingly, there is no clear size effect: medium sized firms are equally affected by complicated procedures as micro firms. Listed firms state complicated procedures even more often as obstacle than household enterprises and stand alone firms. There is also no difference between urban and rural areas. Insufficient collateral is the second most important obstacle to credit applications with 17 percent of the firms stating it as a reason for not applying. It affects mainly micro and small enterprises, but not medium sized firms (20 or more employees) and hardly listed firms. Firms in the production sector are particularly affected (24 %). High interest rates are the third obstacle with 14% of firms stating it as effective deterrent for formal credit applications. They affect urban firms to a lesser extent than rural firms. In a related the inability to repay the loan is an important reason not to apply for a loan for small and micro firms and for household and stand alone firms. Lacking knowledge how and where to apply or inaccessibility of credit institutions do not playa role in hindering firms to apply. Table 22: Obstacles for borrowing from formal institutions Region Ent, groups by employment Type affirm Total Reasons for not borrowing from Urban Rural 1-4 5-19 20-99 Standalone Household listed aformal6nanciat institution Ent. No debt 2.1% 3.5% 2.6% 9.4% 0.0% 8.3% 2.4% 2.0% 3,0% Save own money 3.1% 3.3% 2.7% 6.6% 0.0% 3.4% 3.3% 1.1% 3.3% Borrow from family/friends 0.6% 0.1% 0.3% 0.0% 0.0% 0.2% 0.3% 10.0% 0.3% Possible inability to pay the debt 6.5% 7.6% 7.0% 9.0% 0.1% 8.3% 7.1% 0.7% 7.2% Don't know where to apply 0.5% 0.0% 0.2% 0.0% 0.0% 0.0% 0.2% 0.0% 0.2% Don't know how to apply 0.8% 1.4% 1.3% I 0.0% 0.0% 0.3% 1.3% 0.0% 1.2% No financial institution nearby 0.5% 0.1% 0.2% 0.0% 0.0% 0.0% 0.2% 2.6% 0.2% '~"':: i,":CTsl :T.es ',06% ' 5.4% 13.7% 18.8% 16.8Q1:: 18.2% 13.2% '8.5% 13.7% '·-:·J~-·ce'~. c):'ateral :6.2% 16.8% 16.9% '03% 0.0% 15.7% 16.7% 5,Ogt 16.6% Problems with previous loans 0.6% 1.4% 1.0% 2.8% 10.4% 1.5% 1.1% 4.3% 1.2% .. J ' .: :e(1: rOC2(j G(e5 47.6q6 47.70[. /r8.8S '6 1 34.L% 573°/J 36.c% Lq 1% .. 6: ,991r) 47.7% Other 10.9% 2.8% 5.4% 8.8% 15.4% 7.7% 5.3% 3.9% 5.6% 2.3. InfrastructurelO Infrastructure has been measured by access, cost and quality to electricity, telecommunication phones and landline), water, roads, and postal services. We provide selected results (for further results see Section Electricity In our sample 1601 firms use electricity (i.e. 64%)n 97% of these 1601 firms use PLN as their provider. Firms without electricity are concentrated predominately in Malang, but also in Barru and Labuan as shown in Table 23: In Malang around 60 % do not have electricity, in Badung it is only around 15%. Urban firms are significantly more likely to have electricity than rural firms. Table 23: Percentage of firms without electricity (un weighted and weighted) District Region Badung Kutai Sumbawa Labua" Malang Barru Urban Rural No.offirms 63 91 135 193 256 175 404 509 10 Aspects coverEd: Questionnal:e ModS- Biock XL Block Xlii (A, B, C D, E) dnd Block Xlli.A 11 In Jrweighted sa'''lple 36% do not have electric ty, in ~he weig~t2;j sample it:5 a total of 38 percent. 14 Result of The Rural Investment Climate Assessment (RICA) in Indonesia· Final Report Percentage 15.0 22.0 32.1 46.3 60.5 41.6 31.2 41.8 Percentage weighted 17.8 23.1 36.0 55.7 73.6 39.6 27.5 47.6 As expected there is a strong size effect: 41 percent of the micro-enterprises (1-4 employees) have no electricity and 21 percent of the small enterprises (5-19 employees); almost all larger firms have electricity. 22 % of standalone firms and 42 % of household enterprises have no electricity whereas only 7 % of listed firms are lacking electricity. Half of all producti()n firms, 40 % of service firms and a third of all trade firms have no electricity. The reliability of electricity supply varies for those firms that do have electricity. Only 17 percent experienced no blackouts, around half of the firms experienced no more than 2 days with blackouts per month, three quarters no more th :In 6 days with blackouts. There is a strong regional variation hidden behind these figures: In Labuan 37 percent :)f the firms experienced blackouts on ten days or more per month, in Sumbawa more than a fifth of all firms that do have electricity experiences blackouts every day. With respect to the change in losses due to blackouts there, the shan' of f rms for which losses have increased almost equals the share of firms for which losses have diminished (18.5 % clnd 15.1 % respectively). More than 80% of firms state that electricity access is not a problem, followed by 9 % of firms that consider it a minor problerr. The quality of electricity and cost of electricity is not a problem for 64 % and 62% of firms, respectively. In contrast 13 % and 17% of firms respectively consider quality and cost of electricity a major problem (unweighted 12 ~irms that do not have an access to electricity do not consider their missing access as a problem in 91 % of all cases. Figure 2. Infrastructure obstacles due to electricity Electricity obstacles 90 80 70 ~ 60 I. N;;t a problem S 50 .· Minor problem s: ~ 40 Ell Somewhat a problem , Q) 30 D.. 20 · Major problem '------- .... _-- .... _ - - .... _ j 10 a Electricity Electricity Electricity Access Quality Cost Source: C;ileulated b:Jsed on ModB- J2w. Telecommunication Only 18 percent of all firms are using a landline telephone and only 20 percent are using a cell phone to do business. Out those 20 percent 57 percent do not have a landline; in other words 29 % of all firms use a phone for doing busines;, either a landline or a cell phone or both. 12 to a I ~ rms excluding missing Result of The Rura' Investment Climate Assessment (RICA) in Indonesia Final Report 15 I· Table 24: The usage of telephones for doing business 2005 (weighted sample) ~.,g~~I~p~n~ . .· Using illill"JdlinelelePttorte (in%) '., «fJ~l , . .... .', " ..... . , '. Using a cellular phone On %) Yes No Total Yes' 435 565 100 47.7 135 19.7 No 11.7 88.4 100 52.3 865 80.3 Total 17.9 82.1 100 100 100 100 Key: row proportions column proportions Again there is a strong geographical divide in landline connection and a strong divergence between rural and urban areas, as shown in Table 25. Table 25: Businesses that have a landline (unweightedj ~..'"'.'1....;. I' tap...a" ,.·..:,." Kt4a' . ·. .,um.-wa 'Satu . '.' f'ItcIi~ng BarrU Total Urban Rural Frequency 96 35 39 18 47 44 279 371 126 Percentage 485 19.1 18.2 17.3 34.6 23.2 27.2 28.8 10.5 The eighty percent that do not have a landline have little chance to receive one: 5.4 percent of all firms stated that it is possible to get a new landline connection, only 3.7 percent offirms that did not have a land line said it would be possible to get one! Interestingly, only 10 of all firms considered access to landline a problem or even a major problem (5 % each). Access to cellular phones was regarded a problem or a major problem by 8 percent only (weighted sample). 2.4. Marketing and Competition 13 There is a total of 283 firms in the production sector, 1355 firms are in the trade sector and 883 firms in services. Most production firms operate predominantly locally: On average half the firms made the majority of their sales to consumers in their Village, 88 percent sold mostly to consumers within their own district. Rural firms a more focused on their own village. There are differences between districts with firms in Malang and Labuan being less concentrated on their own village with Malang firms serving more the district and the province and Labuan being focused on the sub district (kecamatan). The figures for the inputs purchased show a similar picture. Table 26: Geographical distribution ofmain Sales and Purchases (weighted sample) ~¢at~~~;ritadeto, '. ~··.'2.ftQ$/~pg~nn . ' . KaQupaten < · Region Badung Kutai Sumbawa Labuan Malang Barru Urban Rural Total Same Village 81,1% 41,5% 72,8% 28,0% 19,5% 78,2% 44,2% 50,9% 49,1% Same sub-district 6,4% 34,1% 19,3% 65,8% 5,0% 7,4% 13,2% 13,3% 13,3% Same district 9,2% 19,3% 6,3% 5,5% 47,3% 12,4% 22,6% 25,7% 24,9% Same province 0,9% 5,1% 1,7% 0,8% 22,7% 1,5% 18,6% 6,7% 10,0% Different province 1,2% 0,0% 0,0% 0,0% 5,6% 0,6% 0,3% 3,4% 2,5% Different country 1,2% 0,1% 0,0% 0,0% 0,0% 0,0% 1,0% 0,0% 0,3% 13 far trade and subcha:):ers rear:anged in the Final do flies ac:ordlr>g to the orde;- of quesrcns covered for processing 6rms, Topics covered: Question naire Moda alock IV, Block XII (G). Block XII,A 16 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report Location where inputs uSed aremade,processing'ffrm, '.' 2005 SameVillaqe 55,4% 60,1% 62,8% 24,4% 76,6% 81,1% 52,8% 71,4% 66,2% Same sub-district 0,1% 22,3% 28,6% 37,3% 2,6% 9,0% 3,1% 12,9% 10,1% Same district 16,4% 1,5% 6,1% 17,3% 12,0% 2,8% 19,8% 6,5% 10,2% Same province 17,1% 14,6% . 1,7% 21,0% 6,9% 4,1% 15,2% 7,7% 9,8% Different province 11,0% 1,5% 0,8% 0,0% 0,1% 3,1% 9,2% 0,6% 3,0% Different country 0,1% 0,0% 0,0% 0,0% 1,8% 0,0% 0,0% 0,9% 0,7% As expected, larger firms sell a larger share to more distant customers, The 'same holds true for listed firms compared to housl?holc and standalone enterprises, Location of ~tes ' , j; '" ..... " ept.groups'by.empIOyrn~nt . TfP. C)ffit'Jl\ "" ... I". made~,2ofSi . > ' . ".. .'''' .' ' < } prO(es~ing 8m f<, t"4, ..... ,5-;19 ~Ow99 >=:too StandalOfle . ~oJd (i~~. I>To~' ,"'.' I' Same Village 50,46% 46,52% 1,66% 9,11% 51,71% 48,65% 18,87% 49,07% Same sub-district 13,94% 10,64% 14,53% 0,00% 13,74% 13,19%' 8,51% 13,27% Same district 22,90% 34,37% 22,87% 0,00% 28,78% 23,98% 38,26% 24,88% Same province 10,74% 7,22% 6,21% 25,16% 2,23% 11,60% 21,02% 9,98% Different province 1,87% 0,76% 54,73% 4,41% 2,22% 2,58% 1,00% 2,51% Different country 0,10% 0,49% 0,00% 61,33% 1,31% 0,00% 12,35% 0,28% I=t~$.;~· Inputs i firm,lOOS ·... Same Village 74,86% 31,63% 0,33% 34,26% 43,13% 70,58% 16,99% 66,16% Same sJb-district 9,42% 12,00% 24,51% 0,00% 4,24% 11,21% 6,15% 10,12% Same district 6,94% 23,90% 30,54% 0,00% 32,29% 6,20% 17,87% 10,24% Same rrovince 8,11% 18,28% 6,12% 4,41% 19,77% 7,85% 36,60% 9,80% Different province 0,66% 14,20% 0,82% 43,24% 0,56% 3,35% 19,62% 3,00% Different country 0,00% 0,00% 37,68% 18,09% 0,00% 0,80% 2,77% 0,69% Compared to 2002, more sales are made to farer regions, For instance, the percentage of firms making the majority of their sales tc the same village has decreased while the corresponding share to foreign countries has increased, The pe'centage of sales based on written or verbal contracts has increased consistently in all sectors from 2002 to 2005, II' 20C5, percentages are especially high for the production sector at the Kabupaten level (cf. Table 27), The service sector is ranked second, In micro enterprises of the production sector, 21 % of sales are based on contracts, followed by the service sector, where 18% can be found, For small and medium sized firms the service sector is strongest represented concerning contracts made, For large enterprises in all but the trading sector, 100% of all sales are bas,~d on contracts, In the trade sector, only 75% of sales are based on contracts, On average, the percentage of sales that is based on written or verbal contracts is very low - it is 27 percent in the production sector, 22 percent in the service sector and only 11 percent in trade, The percentage increases with firm size and it is higher for listed firms in production and trade, but not in services, Table 27: Percentage ofsales based on written or verbal contracts, 2005 ~r .. , .·,..t Ptoductkin J Trade I Service Kabupaten Badun,] I 5231 I 19.34 I 46.69 Result of The Rural l~vestmef1t Climate Assessment (RICA) in I~donesia - Final Report 17 Kutai K. 47.50 14.40 23.04 Sumbawa 28.75 7.60 29.00 Labuan B. 19.10 11.38 1557 I Malang 10.25 359 650 Barru 26.70 5.48 16.11 Region Urban 31.07 9.65 19.05 Rural 23.40 11.87 24.91 Sizeofftrm 1-4 20.73 9.07 18.27 5-19 33.62 23.10 44.28 20-99 42.38 50.38 55.42 >=100 100.00 75.00 100.00 Typeofftrm Standalone 21.10 12.78 25.60 H HEnterprise 19.69 9.36 20.73 Listed 57.10 24.21 21.36 Sector Total 26.68 10.72 21.74 Source: Calculated based on Mod8-12w. More than half of the firms face many competitors and have many buyers already at the level. The competition on the input side however is less intense. It is remarkable that about half of the firms do not know how many suppliers of the inputs they need are in the village. That seems to point towards stable supply relationships and little competition on the input side. There are strong differences between Kabupaten with Sumbawa having little competition on the output and input side and Badung and Barru having much of both. Table 28: Competition on the village and district level, processing firm Kabupaten Badung Kutai K. Sumbawa Labuan B. Malang Barru Total Competitors, same village, processing firm More than 20 62,9% 0,0% 5,7% 22,4% 30,6% 70,0% 35,5% 11 to 20 1,9% 33,2% 7,8% 10,9% 17,5% 3,6% 12,4% 6 to 10 4,0% 12,2% 32,9% 0,3% 5,8% 5,7% 9,2% 1 to 5 21,9% 52,2% 38,6% 66,3% 21,3% 20,2% 28,9% Don't know 9,4% 2,4% 15,% 0,3% 24,9% 0,5% 14,0% Suppliers, same village, processing firm More than 20 9,1% 15,5% 0,0% 7,0% 1,7% 4,7% 4,9% 11 to 20 17,9% 16,9% 1,. 4,0% 2,1% 1,4% 7,1% ! 6 to 10 15,3% 21,6% 4,8% 0,9% 5,0% 5,9% 8,7% 1 to 5 47,5% 30,2% 14,3% 61,9% 23,9% 17,1% 30,0% Don't know 10,2% 15,7% 9,3% 26,2% 67,4% 71,0% 49,3% Buyers, same village, processing firm More than 20 26,9% 55,8% 33,5% 34,9% 32,3% 10,2% 31,5% 11 to 20 0,4% 21,1% 5,2% 38,0% 18,2% 4,5% 12,3% 6 to 10 1,1% 6,1% 15,5% 12,3% 4,9% 36,1% 9,1% 1 to 5 68,9% 16,7% 8,1% 7,0% 15,4% 44,7% 29,6% 18 Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report Don't know 2,7% 0,3% 37,7% 7,9% 29,3% 4,5% 17,6% Badung Kutai K. Sumbawa Labuan B. Malang Barru Total Competitors, same district, processing firm More than 20 70)% 17,3% 0,1% 14,3% 29,3% 6,2% 31,1% 11 to 20 0,7% 22)% 0,0% 0,0% 2,2% 6,2% 4,0% 6to 10 7,9% 7,9% 0,0% 20,1% 3,4% 1,9% 5,0% 1 to 5 0,0% 0,3% 0,0% 0,9% 0,7% 5,1% 0,8% Don't know 20,7% 51,8% 99,9% 64)% 64,4% 80,6% 59,0% Suppliers, sa'ne district, processing firm More tr an 20 15,1% 36,7% 0,0% 11,1% 19,0% 2,6% 15,1% 11 to 20 2,2% 15,0% 0,0% 1,0% 0,0% 4,6% 2,2% 6to 10 14)% 0,0% 0,0% 0,9% 1)% 0,2% 4,4% 1 to 5 50,5% 7,2% 0,1% 12,0% 5,1% 4,8% 16,2% Don't know 17,6% 41,2% 99,9% 75,1% 74,3% 87,9% 62,1% Buyers, same district, processing firm More tr.an 20 17,1% 48,6% 2,9% 3,0% 56,5% 11)% 33,0% 11 to 20 1,3% 0,0% 0,0% 0,0% 1,9% 1,9% 1,2% 6 to 10 9,5% 2,5% 0,0% 10,1% 2,8% 0,0% 4,1% 1 to 5 53,0% 9,8% 1,1% 11,6% 0,1% 1,9% 14,7% Don't k,ow 19,0% 39,1% 95,9% 75,4% 38,8% 84,6% 47,1% The larger th,~ area that is considered (village, sub district, district, province), the higher is the ignorance about the market ';ituaton. Almost 60 percent of the firms do not know how many competitors they face at the district level compan:'d to 149) at the village level, which suggests that these firms operate only locally. Likewise, ignorance levels for suppliers (lnd customers go up with increasing geographical coverage. Ignorance levels go down with firm size; in additior to that, there is no clear size pattern with respect to competition intensity. Out of :;;30 proce;sing firms, 90% stated that they did not have any problems with competitors, suppliers or buyers. However, for ~he remaining 10% offirms where problems occurred, the solution was solved for 37% of all cases directly with those in'lolv·3d. In 30% of all cases, the arising conflict was solved informally by involving a respected individual. One of the Ie 1St fc:vored methods is to involve the Business Competition Supervisory Commission, which accounts for only 4% of cc'ses 'vhere problems prevail. In the tr Jding sector out of 1344 firms only 4% were found to have a problem with other market agents. The preferred method of handling these problems was directly with those involved for 76% of all cases, followed by "other" in 17%. The way throiJgh the Business Competition Supervisory Commission is a method used only in 2% of the cases when problems arise. For the service sector out of 876 firms observed, 4% stated that they had a problem with competitors or Again, the most preferred method of solving these probiems is for 64% of all cases for 19% other methocs are stated and in 13% informal ways of finding a solution are applied. It is remarkable that none of the process Ig, trading or service enterprises solved their problems with competitors, suppliers or buyers through the courts! 2.5. The Diffusion ofTechnical Knowledge 14 There ae a total of 304 firms for which innovations are recorded. After 2001 there has been a steady increase in the number of implementations launched. Three quarters of all firms state as source for the idea the category "other". 14 ModB Bbck XI, Block XII' U), Block XIII A.. A I :he in section refer to the unwelghT.E'd sarnple 15 from 1982 onwards, a total f.rms stating the date of the i~novatlon However, only frorll Result of The Rural Investment ClilT!ate Assessment (RICA) in Indonesia Final Report 19 Five percent of the ideas are from the parent firm and 7 % from client/supplier and machine supply each. For 51 % of all cases the innovation was paid by the Enterprises'funds. 40% were paid by "other'; where "sendiri" is the most stated category. Only 7% of innovations are funded by bank loans and 2% are enabled by government programs. None of the innovations observed is funded by a NGO program or by a foreign donor. Asked for the source of technical support to implement the innovation, 79% of all cases named the category "other'; where "sendiri" takes account for 23%. 14% of support was provided by the private sector. The regional government only is involved in 3% of the implementations. The private sector especially finances registered firms, as there are 31 % of registered firms supported by the former. 16 The main technology obstacle was for 57% of all technology obstacles the lack of training. For the second most important obstacle lack of training even accounts for 75%.ln Kutai Kertanegara there are no other technology obstacles but lack of training. Whereas lack of training and cost of accessing information and technology are most influential in urban areas, in rural areas the access to computers and to information and technology is particularly problematic 2.6. Local Governance 17 Taxes Businesses have to pay taxes and levies at each level (center, province, district, and village) which consists of official taxes and fees and unofficial levies. They comprise 1. central: income tax, land and building tax, value added tax, customs, other central taxes and unofficial levies 2. provincial: Motor vehicle tax, Tax on changing vehicle ownership, other taxes, unofficial levies 3. district: Hotel tax, restaurant tax, entertainment tax, advertising tax, class C mining tax, other district taxes and levies, unofficial levies 4. other: payments to security officials, to thugs, to sub-region and village officials, others. Note that a large share of firms does not pay taxes at all in some subcategories. For instance 78 % of all firms do not pay central taxes at all. The corresponding figures for all categories are given below. not pay taxes and levies in the respective category (weighted sample) Share offirms that do - Tax category Central 78% Provincial 72% District 84% Other 68% Any Tax or Levy' 47 % The composition of all taxes and levies are given in Table 29: Table 29: Structure of taxes and levies by level (weighted sample) subtotal tit_I 2OQS* '. tn'% . Central gov;. taxes I proVinCe G9V.taxeS reafonGov.taxes other levies Kabupaten Badung 37.39 18.25 21.96 22.40 Kutai K. 47.57 15.56 20.45 16.42 Sumbawa 51.35 10.50 21.18 16.97 2002 ai! six aspects of possibie hirdrances are fGJrd to be of sorrewhat a proo:em tor around 90%. Those s:x areas are lack of t:ainjng, lir'litec to info'mation ar,d technology a~d h:gh cost of accessi:lg information and tecr,rology. Block VII. Block XI:I IH, K, lj, Block XIII.A 20 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report Labuan B. 34.13 31.19 15.15 19.52 Malang 31.77 26.01 24.44 17.77 , Barru 44.30 15.98 21.13 18.58 'Region , Urban 39.38 18.60 21.86 20.16 I Rural 41.89 19.95 20.21 17.94 Size of firm 11-4 40.97 19.39 20.92 18.73 5-19 38.19 19.22 21.40 21.19 20-99 37.41 20.20 21.45 20.94 >='t00 62.37 10.89 14.85 11.89 Type of firm Standalone 37.33 19.70 21.59 21.39 Household 41.56 19.22 20.86 18.37 Listed 63.96 10.44 14.30 11.29 Sector Production 40.57 19.04 22.27 18.12 Trade 40.53 19.36 20.71 19.40 Services 40.97 19.30 21.00 18.73 Total 40.69 19.30 21.00 19.01 - *8ase sue are 251 rJ firms Central governrrent taxes account for 41% of total taxes. Region government taxes are slightly higher (21%) than province government taxes and other levies (19% each). While there is no clear pattern of the tax structure with respect to firm size, region or sector listed and large firms pay a much larger share in central government taxes. There is also consiCJerable variation across districts: Malang and Labuan have a much lower share of central taxes. In 2005, central government taxes consist for 37% of income tax, for 12% of land and bUildings tax, for 47% of value added:ax, for around 4% of customs and for only very slight shares of other taxes and unofficial levies by the central governrnent Provincial taxes consist largely of revenues from the motorized vehicle tax (98%) and tax on changing vehicle ownership (1.5%). On the regional level, 37% account for other regional government taxes, followed by hotel taxes, which make up 24% of all regional taxation. Unofficial levies of regional government taxes consist of 20%, followed by Class C mining taxes \l'dth 13%. The other shares are of restaurant taxes (5%), advertising taxes (1 %) and a very small amount of entertainment taxes. Table 30: Distribution ofother levies (weighted sample): Kabupaten Badung 8.35 2.54 52.30 36.82 Kutai K. 5.86 7.08 71.98 15.07 Sumbawa 5.98 2.67 75.74 15.62 Labuan B. 39.10 7.85 17.45 35.60 Malang 24.06 7.53 17.67 50.73 Barru 6.14 13.86 63.53 16.47 Region -~"-~.-"'-~-"'-~-- Result of The Rural Investment Climate Assessment (RICA) in Indonesia .. Final Report 21 Urban 10.10 5.12 51.86 32.92 Rural 16.81 7.96 49.42 25.81 Size of firm 1-4 14.17 6.76 50.57 28.50 5-19 9.98 5.36 49.10 35.56 20-99 10.77 4.87 47.97 36.38 , >=100 7.55 12.98 62.75 16.72 Type of firm Standalone 10.84 4.10 48.79 36.27 Household 14.37 7.27 51.05 27.31 Listed 8.05 12.76 62.77 16.42 Sector Production 14.75 6.39 46.76 32.11 Trade 13.45 6.44 51.57 28.54 Services 13.44 6.90 50.41 29.25 Total 13.60 6.60 50.59 29.21 *Over all firms There is a strong regional variation in the "other levies": In and Labuan payments to security official playa large role while payments to village and subregional officials are very important in Kutai, Sumbawa and Barru. Listed firms pay relatively less to security officials and more to thugs; rural firms pay more to security officials. Sectors are very similar. Permits In 72% of all cases none of the following permits exist bUilding permit, industrial permit/registration, enterprise registration, trade permit, application for a commercial electricity connection, work safety permit/certificate from Committee for Health and Work Safety, others. 14% of firms have one permit only, 7% of firms have two permits, 3% have three permits, 2% have four permits, and 1% has five permits. Table 31: Share of firms that have permits Ent.groups by employment Type of firm Region Having a permit Total Household Listed 1-4 5-19 20-99 >=100 Standalone Urban Rural Ent Ent. Permit. all different 18.4% 53.9% 97.6% 100.0% 49.4% 16.1% 96.1% 36.2% 12.0% 23.5% fields Building Permit 7.1% 21.7% 91.4% 100.0% 17.6% 7.3% 42.6% 15.3% 4.5% 9.6% Industrial permit! 1.9% 13.0% 78.3% 100.0% 8.7% 2.3% 21.7% 5.1% 2.4% 3.7% Registration Enterprise registration 4.9% 21.4% 86.2% 77.4% 22.6% 2.9% 75.6% 12.0% 3.0% 7.3% Trade permit (S,UP) 10.8% 41.4% 94.2% 87.4% 34.9% 9.3% 83.0% 25.0% 5.9% 15.0% Application for a 1.8% 7.2% 20.6% 56.7% 6.2% 1.5% 12.7% 3.0% 2.1% 2.5% commercial electricity connection Work safety permit! 1.6% 1.7% 26.0% 88.7% 0.9% 1.9% 9.0% 1.6% 1.9% 1.7% certificate from Comminee for Health and Work Safety (P2K3) As expected we have a clear size effect in the existence of permits. Also, household enterprises are much less likely to Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report have permits than standalone firms which are in turn much less likely to have permits compared to listed enterprises, Urban firms are more likely to have permits than rural ones, There is confusion about the reason why firms do not have permits, Half of the firms state that permits are simply not requested from them. Table 32: Building permits (un weighted sample) Building permit necessary? Total Yes No Don'tknow Have building Yes 293 11 7 311 permit No 522 821 594 1,937 Total 815 832 601 2,248 The bui ding permit may serve as an example, Those who have a permit overwhelmingly think that it is necessary for them, p mong those who do not have it a large share (27%) thinks it is necessary, Of those who think it is necessary for therYI 36 percent actually have it. Yet, when asked why they do not have it, those who think it is necessary for them 5:)% sad it was not requested, Corruption On averdge, ~wo thirds did not regard corruption as a problem, yet 20 percent regarded it a major problem; a quarter of all firms a protlem, There are significant differences between districts with Kutai and Malang being less affected by corrupt ::m Ulan 1he other districts. Household enterprises are somewhat less affected by corruption than listed and standalone frms, There is no clear size pattern, Table 33: Is corruption a problem? Kahupaten Region Corruption 2005 Total Badung Kutai K. Sumbawa LabuanB. Marang Barru Total Urban Rural Not a problem 59,0% 78,0% 69,5% 50,7% 80,5% 64,6% 66,8% 69,0% 64,8% 66,8% A mino' problem 8,7% 6,2% 3,5% 9,0% 2,4% 7,7% 6,5% 7,0% 6,1% 6,5% Somevv hat 0' a 6,0% 6,9% 4,3% 10,6% 5,1% 7,4% 6,6% 2,8% 9,9% 6,6% problem A majo problem 26,3% 8,8% 22,7% 29,7% 12,0% 20,3% 20,2% 21,2% 19,2% 20,2% Ent.group$ by employment Typeofnrm Sector of firm Corruption Household 1-4 5-19 20-99 >=100 Standalone Listed Production Trade Services 2005 Em. Not a problem 67,8% 59,8% 71,5% 46,3% 69,1% 66,2% 44,1% 69,1% 70,0% 61,3% Aminor 6,2% 8,9% 3,3% 0,0% 8,7% 5,9% 25,2% 2,8% 7,3% 6,5% I problem Somewnat of a 7,1% 2,2% 7,3% 0,0% 3,8% 7,4% 6,7% 5,4% 5,3% 8,8% I problem A major 18,9% 29,1% 17,9% 53,7% 18,5% 20,6% 24,0% 22,7% 17,3% 23,4% ·problem The issl;e of time and cost of registering an Enterprise is especially of relevance for medium sized firms! where 38% state trat it is a minor problem, a moderate problem or a major problem, Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 3. Major Obstacles to Growth and Development of Firms In addition to questions on marketing and competition, infrastructure, credit labor, technology and governance, firms were asked to classify a given list of potential problems as major, moderate, minor, or no problem. Full results are given in Table 34 below. Below we highlight the major obstacles and point out if they apply to a specific subset of firms in particular. 1. Credit restrictions are a major problem for more than a quarter of the firms. This refers to all aspects of borrowing through the formal credit system, including high interest rates, too complicated procedures and the fear not to be able to repay the loan. Micro- and small firms are particularly affected by this obstacle as are household and sta nda lone enterprises. 2. More than a fifth of all firms bemoan the lack ofdemand for their goods and services. This applies predominantly micro- and small enterprises, and household and standalone firms, and much less to listed and to medium and large firms. 3. Bad governance is a problem for all of firms. Twenty percent see corruption as a major obstacle, almost a quarter of all firms regard uncertain economic poliCies as a major problem. Restrictive regulations and registration procedures and high taxes are major problems for ten percent of all firms with rural and micro-firms being somewhat less affected by presumably because they operate below the radar screen of official regulations and many do not pay taxes at all. 4. Road infrastructure is a major problem for 10 to 17 % of all firms. Especially rural firms suffer from insufficient road quality and road access; high transportation costs are a major problem for all types of firm. For many medium and large firms traffic congestion is a major problem. 5. Electricity quality and cost (not is a major problem for 12 and 17 percent of all firms, respectively. Rural firms suffer more from insufficient quality. The situation is particularly bad in Sumbawa. 6. Labor market issues seem not to be major problems for most firms; the lack of skilled labor and work permits for foreigners is a problem for some small (5-19 workers) and urban firms. It is a problem especially in Labuan. 24 Result of The Rural Investment Climate Assessment (RICA) in Indonesia· Final Report Table 34: Major problems to the enterprise's growth and operation Ka~ten 1 ... ~. ~;g~bJemployment I Typeaffirm 5ectorofilrm Majorproblem,2OO5 rota! 1~+.KutaiP~;W;f~i!.l~lBiHr~+ijibaqJ~' t4.1S-19l ~9~~9.1.i1;.l!lO l$l.mdctkiil~ I H~I ro V> 17,0% I 22,0% I 12,2% I 20,1% I 17,2% I 11,5% 16,4% I 15,2% I 18,6% 16,0% 23,6% I 18,3% I 25,5% 17,9% 16,7% 18,2% 19,5% 13,6% I 21,1% '" 3 (1) 4,8% I 7,6% I 4,8% I 6,0% I 6,3% I 0,6% 2,2% I 3,6% I 5,9% 4,9% 4,1% I 4,2% I 6,4% 2,8% 5,3% 5,3% 3,6% 4,9% I 5,0% ;a ;0 3,6% I 4,7% I 5,2% I 5,1% I 3,9% I 0,6% 1,4% I 2,4% I 4,7% 3,5% 4,2% I 3,7% I 6,4% 2,4% 3,9% 6,8% 3,8% 4,2% I 2,6% ~ 6,7% I 16,0% I 7,4% I 4,5% I 4,0% I 0,0% I 0,7% I 9,1% I 4,4% I 5,4% I 17,0% I 8,0% I 6,4% 13,0% 4,9% 8,3% 3,8% 6,4% I 7,9% :::; "'100 Standalone Household Listed Production Trade Services (j) '" ill Access to computers 4,7% 6,5% 2,9% 1,6% 8,4% 1,9% 6,1% 4,8% 4,7% 5,3% 1,5% 0,0% 19,0% 1,0% 5,7% 3,6% 3,9% 4,7% 5,0% Access to Information & 4,3% 6,2% 2,1% 1,4% 7,1% 1,9% 5,8% 4,4% 4,2% 4,7% 1,9% 1,5% 19,0% 1,4% 5,1% 3,8% 3,9% 4,3% 4,4% ~ :::> technology 9!.. Quality of information & 4,1% 5,7% 1,1% 1,4% 7,1% 1,9% 6,2% 4,2% 3,9% 4,4% 1,7% 3,0% 6,4% 1,4% 4,8% 3,2% 3,8% 3,9% 4,4% I technology Cost of accessing inform. & technology 6,3% 13,9% 1,0% 1,5% 8,0% 1,9% 6,5% 8,8% 4,1% 5,7% 12,0% 11.9% 19,0% 8,6% 5,7% 6,5% 3,7% 6,1% 7,5% Governance Corruption 19,6% 26,3% 8,7% 22,6% 29,5% 11,9% 17,8% 20,2% 19,1% 18,4% 28,8% 17,8% 52,8% 18,4% 20,0% 23,0% 22,5% 17,0% 22,5% Uncertain economic policy 23,4% 33,2% 21,3% 26,8% 30,1% 13,7% 10,9% 23,0% 23,7% 22,9% 27,2% 24,4% 36,6% 25,8% 22,7% 18,5% 27,0% 21,1% 25,4% Restrictive laws and regulations 14,6% 20,4% 10,2% 19,9% 18,3% 8,4% 9,0% 14,9% 14,4% 13,6% 21,0% 28,8% 36,6% 13,9% 14,8% 18,1% 19,4% 12,1% 16,8% TIme/cost to register Enterprise 9,2% 18,5% 7,8% 4,8% 8,1% 0,7% 7,9% 13,1% 5,6% 8,6% 14,4% 14,7% 0,0% 13,6% 8,0% 4,2% 1,7% 9,0% 11,9% Time &Cost of obtaining Enterprise 9,4% 17,0% 11,6% 4,7% 7,9% 0,7% 7,8% 12,7% 6,3% 8,9% 14,1% 13,7% 17,6% 11,6% 8,8% 5,1% 2,3% 8,4% 13,0% permits Compl1cated regulations to register 10,1% 18,1% 13,1% 3,3% 9,3% 0,7% 9,0% 13,8% 6,7% 9,7% 14,7% 15,4% 12,7% 12,3% 9,5% 7,3% 2,5% 9,2% 13,9% Enterprise &obtain permits High taxes 10,6% 16,7% 3,5% 12,9% 20,3% 1,4% 7,6% 11,9% 9,4% 10,3% 13,8% 15,4% 30,2% 12,3% 10,1% 14,4% 5,7% 8,7% 14,8% Complicated tax regulations 9,3% 16,3% 3,6% 8,2% 17,7% 0,6% 6,8% 10,1% 8,6% 8,4% 16,8% 15,2% 12,7% 9,8% 9,2% 8,0% 5,2% 7,7% 13,1% Unofficial levies 7.2% 6,8% 6,1% 8,4% 16,4% 0,6% 7,4% 5,9% 8,4% 7,1% 7,8% 18,4% 17,6% 5,0% 7,8% 9,3% 5,5% 5,3% 10,5% -- - ----~ ----- ---- -------~-- Table 35: The Most Important Obstacle to Operation and Growth if c: ;::;: a ::;l '" :;0 c !il ::; I a Q '3< m m *~ 3 " 'a 55 ~ 5' ::J n o ::J 3i 0;< 51 ~ I N '-J N co ~ ;=+ ~ -i ::;, CD ::0 c: ~ ::> I CO a Q ~r ru $" [ 3 co a ;0 £ ::J ::J C4 a ::J [!l ii;' Sl ~ ::0 13 ~ Firms were also asked for the most important obstacle for their businesses. Results are in Table 35. The picture is in matly cases similar to the previous picture, where respondents were asked to rate potential obstacles as major, modera~e, minor or no problem. Since each firm now had to pickjust one obstacle, there may be significant differences. For instance, many firms regarded complicated procedures for credit application as major problem, but a very few firfT's ranked them as the most important obstacle to development. Credit onstr3ints, demand constraints, bad road and electricity infrastructure and bad governance were dominant also as the most i"llportant obstacles. Yet some patterns become amore differentiated. · Demand constraints are the most important o~stacle for 13 percent of all firms, but these firms are located in Surnbavia ard they are not medium or sized. · Credit constraints are the most important obstacle for 16 percent of all firms, either as difficulty to borrow from formel credit institutions or in the form of high interest rates. The is not uniform across Kabupatens and listed large enterprises and urban firms state this less often as the most important obstacle. · Road infrastructure (access, cost, quality) is the most important obstacle for 13 percent of all firms, but these firms are mostlyocated in Malang, Sumbawa, and Labuan; they are rural and they are mostly in the production sector. · Electricity quality and cost is the major problem for 9 percent of the firms. Cost is the major problem mainly for urbar firms and firms in Badung and Barru, quality is a problem for rural firms and those in Kutai, Sumbawa and Labuan. Mediu'Ti and firms are not among them. · Uncertain economic policies are the most important problem for many medium sized and firms. Half of all firms with 20-99 workers state that as the most important problem I Since they constitute only a small share of all firms, ::mly 4 percent of all firms state this problem as the most pressing one. · High taxes 3re: he most important problem for almost a quarter of the listed firms. Table 3:, can also be read column-wise which allows for a targeted policy response to the most important investment climate obsLcles. We give some important examples: - Medium and large firms suffer most from uncertain economic credit constraints and high taxes, - Micro firms s'Jffer most from demand constraints, credit constraints and insufficient road and electricity infrastructlre, - Production firms suffer much more from insufficient road infrastructure and to a lesser extent from lacking demalid. - Sumi)awa needs to focus on electricity and road infrastructure whereas in Barru credit and demand constraints are mLch more important. Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report 29 Appendix i. Master Do File do Added_Mod B-12w.do: Adding variables rural. entype. sector and emplgrp. which were not included in version 1.2. anymore. Data file used: ModB-12w Data file generated: ModBEnt-12wnew do Cleaning.do: Generating new variables. controlling for outliers and labelling all variables. Data file used: ModBEnt-12wnew Data file generated: ModBEnt12wnew_clean do Final_Tables_unweighted.do: Running the final analysis on the unweighted data. Data file used: ModBEnt-12wnewJlean Running the final analysis with weights for the whole sample. which is dominated by Malang (wCbus: business sampling probability weight). Data file used: ModBEnt-12wnew_clean Running the final analysis with weights which give an equal weighting for each Kabupaten (nwcbus: normalized business weight). Data file used: ModBEnt-12wnew_clean ii. Data Cleaning The most important changes and corrections for outliers of the data shall be briefly outlined in this section.'B The data showed some inconsistency as there were more firms that answered to the of the educational level compared to the question whether a firm has full-time and part-time workers respectively at all. The number of total full-time workers was corrected by the number of total full-time workers according to educational level; it was assumed that the information given on the educational level is more precise than on the question if an enterprise has full-time workers. The same corrections had to be done for the total number of part-time workers. For variables recruitOS. recruit02. everfirOS. everfir02. chnempl05. chnempl02 zeros were set to missing values since the answer categories of these variables (yes/no. etc.) excluded any further The variable used for the question whether a firm has ever applied for a loan or credit had to be corrected since it has to be assumed that firms. which answered in the following that their loan was approved respectively that it was in process. had applied for a loan in the first place. Out of 12 firms. which answered the question if their loan was 18 Note trat all analysis was ;ormedy dC'le en data set :::;;terpr!Ses"""v~' However, the analysis was updated for ModB~ 12w. 30 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report approved although they had not stated that they have ever applied for a loan. 9 firms have actually received a loan or their loan was in process. In order to be abie to directly compare avamloan and avapploan the same base size was created since their number of obsevations did not differ substantially. For the variables "Estimated value of loan needed as a percentage of the loan" and "Average amount repaid. as a percentage of initial loan" outliers were found. which had to be set to 100. However. it should be mentioned that for the fowler the amount of corrections to be made was immense such that there might be a systematic data error at this poi 1t. The var able on the year of a permit most recently issued had to be alternated as below: Year of Jermit 0 was set to 2000 if permit was obtained owas set to if permit was not obtained b7r'i'k5b was setto if b7r'j'kSb==12 ~ was set to 2001 2 was set to 2002 3 was set to 2003 4 was set to 2004 6 was set to 2006 98 was set to 1998 99 was set to 1999 iii. List of Variables elecacc05 %21 constr Electricity Access elecquil05 %21.0g constr Electricity Quality elecstO: lJyte %8.0g Electricity cost elecacc02 byte %21.0g constr Electricity Access. change since 2002 elecqua02 byte %21.0g constr Electricity Quality. change since 2002 elecst02 byte %8.0g Electricity cost. change since 2002 fxlnaCCl)S byte %21.0g constr Fixed line access. 2005 fxlnquaOS %21.0g constr Fixed line quality. 2005 fxlncstCS oyte %21.0g constr Fixed line cost. 2005 celiacc05 byte %21.0g constr Cellular access. 2005 ceilquaJ5 byte %21.0g constr Cellular quality. 2005 celicstC5 jyte %21.09 constr Cellular cost. 2005 fxlnacc l )2 byte %21 constr Fixed line access. change since 2002 fxlnqua02 %21.0g constr Fixed line quality. change since 2002 fxlncst02 byte %21.0g constr Fixed line cost. change since 2002 ceilacc02 byte %21.0g constr Cellular access. change since 2002 ceilqua02 oyte %21.0g constr Cellular quality. change since 2002 celicstC2 byte %21.0g constr Cellular cost. change since 2002 wataccJS byte %21.0g constr Water Access waqua05 byte %21.0g constr Water Quality wacst05 byte %21.og constr Water Cost wataccJ2 byte %21.0g constr Water Access. change since 2002 waquaC2 byte %21.0g constr Water Quality. change since 2002 wacst02 byte %21.0g constr Water Cost. change since 2002 postaccOS byte %21.0g constr Postal Services. Access postquaOS byte %21.0g constr Postal Services. Quality postcstOS byte %21.0g constr Postal Services. Cost. change since 2002 postacc02 byte %21.0g constr Postal Services. Access. change since 2002 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report 31 postqua02 byte %21.0g constr Postal Services. Quality. change since 2002 postcst02 %21.0 constr Postal. Service Cost troacc05 byte %21.0g constr Transportation. Road access troqua05 byte %21.0g constr Transportation. Road quality trcst05 byte %21.0g constr Transportation. Cost trtraff05 byte %21.0g constr Transportation. Traffic trfac05 byte %21.0g constr Transportation. Facilities to transport goods troacc02 %21.0g constr Transportation. Road access. since 2002 troqua02 %21.0g constr Transportation. Road quality. change since 2002 trcst02 byte %21.0g constr Transportation. Cost. change since 2002 trtraff02 byte %21 constr Transportation. Traffic. change since 2002 trfac02 byte %21.0g constr Transportation. Facilities to transport change since 2002 obstfam05 byte %21.0g constr Possibility to borrow from family. friends or others obstinst05 byte %21 .Og constr Possibility to borrow from formal financial institutions obstirate05 byte %21.0g constr Obstacle due to Interest rate obstioanpro05 byte %21.0g constr Complicated bank loan procedures (too many obstinstall05 byte Fear of not being able to pay loan installments obstfam02 byte %21.0g constr Possibility to borrow from family. friends or others. change since 2002 obstinst02 byte %21.0g constr Possibility to borrow from formal financial institutions. since 2002 obstirate02 byte %21.0g constr Obstacle due to Interest rate. change since 2002 obstioanpro02 byte %21 .09 constr Complicated bank loan procedures (too many change since 2002 obstinstali02 byte Fear of not being able to pay loan installments. change since 2002 accmark05 byte %21.0g constr Access to markets(distance and cost) infomark05 byte %21.0g constr Difficulty to obtain information on your product's market demmark05 %21.0g constr Demand for goods and services produced accmark02 byte %21.0g constr Access to markets(distance and cost). change since 2002 infomark02 byte %21.09 constr Difficulty to obtain information on your products market. change since 2002 demmark02 byte %21.09 constr Demand for goods and services produced. change since 2002 corrOS byte %21.09 constr Government: Corruption. 2005 corr02 %21.og constr Government: Corruption. change since 2002 b13rh2_02 byte %21.0g constr Government. Uncertain economic policy b13rh3_02 byte %21.0g constr Government. Restrictive laws and regulations b1 byte %21.0g constr Criminality. theft and lawlessness b1 byte %21.0g constr Safety. Conflicts and social friction b13ri1_02 byte %21.0g constr Safety. Criminality. theft and lawlessness b13ri2_02 byte %21.0g constr Safety. Conflicts and social friction IcktrOS byte %21.0g constr Technology: Lack ofTraining. 2005 rescstOS byte %21 .Og constr Technology: Research Cost. 2005 acccompOS byte %21 .09 constr Technology: Access to computers. 2005 accinfOS byte %21.0g constr Technology: Access to information and technology. 2005 quainfOS byte %21.0g constr Technology: of information & technology. 2005 cstinf05 byte %21.0g constr Technology: Cost of accessing information & technology. 2005 Icktr02 byte %21.0g constr Technology: Lack ofTraining. change since 2002 rescst02 byte %21.0g constr Technology: Research Cost. change since 2002 acccomp02 byte %21 .Og constr Technology: Access to computers. change since 2002 accinf02 byte %21.0g constr Technology: Access to information and technology. change since 2002 quainf02 byte %21.0g constr Technology: Quality of information & technology. since 2002 cstinf02 byte %21 constr Technology: Cost of accessing information & technology. change since 2002 regenOS byte %21.0g constr Registration & Permits: Time & Cost of registering Enterprise. 2005 32 Result 01 The Rural Investment Climate Assessment (RICA) in Indonesia Final Report obtprm05 byte %21.0g constr Registration & Permits: Time & Cost of obtaining Enterprise permits. 2005 compreg05 byte %21.0g constr Registration & Permits: complicated regulations to Enterprise & obtain regenD:2 byte %21.0g constr Registration & Permits: Time & Cost of registering Enterprise. change since 2002 obtprrr02 byte %21.0g constr Registration & Permits: Time & Cost of obtaining Enterprise permits. change since 2002 comprE(j02 byte %21.0g constr Registration & Permits: complicated regulations to Enterprise & obtain permit htax05 byte %21.0g constr Taxation: High taxes. 2005 comptc.x05 byte %21.0g constr Taxation: complicated regulations to calculate & pay taxes. 2005 unlevOS byte %21.0g constr Taxation: Unofficial levies. 2005 htax02 Dyte %21.0g constr Taxation: High taxes. change since 2002 comptcJx02 byte %21.0g constr Taxation: complicated regulations to calculate & pay taxes. change since 2002 unlevO:) byte %21 constr Taxation: Unofficial levies. change since 2002 rural float %9.0g Urban=O/rural=l entype float %9.0g Type of firm. standalone= 1. HHent.=2. Registered=3 sector tloat %9.0g Sector of fi rm. production= 1. trade=2. services=3 emplgrp ~loat %10.0g emplgrpl Ent.groups by employment kabu tloat %1 kabu Kabupaten nomorthsOS 'loat %9.0g Average no of months worked unpaid. 2005 nomorthsO~: !loat %9.0g Average no of months worked unpaid. 2002 nodays:)5 'loat %9.0g Average no of days worked per month unpaid. 2005 nodays02 ~loat %9.0g Average no of days worked per month unpaid. 2002 nohrsOj ·loat %9.0g Average no of hours worked per day unpaid. 2005 nohrsO ~loat Average no of hours worked per day unpaid. 2002 fillit 'loat %9.0g Illiterate full-time workers funfin 'loat %9.0g Full-time workers unfinished elementary school flow loat %9.0g Full-time workers finished elementary or junior high school fhigh "loat %9.0g Full-time workers finished high school or more pillit 'loat %9.0g Illiterate part-time workers punfin noat %9.0g Part-time workers unfinished elementary school plow float %9.0g Part-time workers finished elementary or junior high school phigh tloat %9.0g Part-time workers finished high school or more feduall float %9.0g Full-time workers. all educational levels pedual float %9.0g Part-time workers. all educational levels ftime float %9.0g No. of full-time workers per enterprise. male + female ftimerr float %9.0g Full-time paid male workers per enterprise ftimef float %9.0g Full-time paid female workers per enterprise ptime float %9.0g No. of part-time paid workers per enterprise. male + female ptimem float %9.0g Part-time paid male workers per enterprise ptimef float %9.0g Part-time paid female workers per enterprise maleernpl float Male paid part-time and full-time per enterprise femempl float %9.0g Female paid part-time and full-time per enterprise perff float %9.0g Percentage offemales among full-time workers perfp 'loat %9.0g Percentage of females among part-time workers perfillit float %9.0g Percentage of illiterate per full-time total perfunln float %9.0g percentage of full-time workers who unfinished elementary school perflov/ float %9.0g percentage of full-time workers finished element school or jun. high perfhigh float percentage full-time workers who finished high school or more perpillit float %9.0g Percentage of illiterate per part-time total Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 33 perpunfin float %9.0g percentage of part-time workers who unfinished elementary school perplow float %9.0g percentage of part-time workers finished element. school or jun. high perphigh float %9.0g percentage part-time workers who finished high school or more ttrainb float Total number of workers who received training before employed ttrain float %9.0g Total number of workers who received training from the enterprise ftrainb float %9.0g Full-time workers who received training before employed ftrain float %9.0g Full-time workers who received training from enterpr. ptrainb float %9.0g Part-time workers received training before employed ptrain float Part-time workers received training from enterpr. matrainb float %9.0g Male workers received training before employed matrain float %9.0g Male workers.training from enterprise fetrainb float %9.0g Female workers.training before employed fetrain float %9.0g Female workers.training from enterprise perftitrainb float %9.0g percentage of full-time workers trained before employed perftitrain float %9.0g percentage of full-time workers trained by enterprise perptitrainb float %9.0g percentage of part-time workers trained before employ. perptitrain float %9.0g percentage part-time workers trained from enterprise permatrainb float %9.0g percentage male. trained before employed permatrain float %9.0g percentage male. trained from enterprise perfetrainb float %9.0g percentage female. trained before employed perfetrain float %9.0g percentage female. trained from enterprise tun float %9.0g Total workers unionized. part-time/full-time/male/female fun float %9.0g Full-time workers unionized fmun float %9.0g Full-time male workers unionized ffun float %9.0g Full-time female workers unionized pun float %9.0g Part-time workers unionized pmun float %9.0g part-time male workers unionized pfun float %9.0g part-time female workers unionized perfmun float %9.0g percentage full-time male unionized perffun float %9.0g percentage full-time female unionized perpmun float %9.0g percentage part-time male unionized perpfun float %90g percentage part-time female unionized avwage05ftm float %90g Aver.monthly wage full-time. male 2005 avwage05ftf float Aver.monthly wage full-time. female 2005 avwage05ptm float %9.0g Aver.monthly wage part-time. male 2005 avwage05ptf float %9.0g Aver.monthly wage part-time. female 2005 avwage05 float %9.0g Aver.monthly wage 2005 avwage05m float %9.0g Aver.monthly wage male 2005 avwage05f float %9.0g Aver.monthly wage female 2005 avwage05ft float %9.0g Aver.monthly wage full-time 2005 avwage05pt float %9.0g Aver.monthly wage part-time 2005 avwage02 float %9.0g Aver.monthly wage 2002 recruit05 float %9.0g Have you recruited any new skilled employees? (1 =Yes. 2=no). 2005 recruit02 float %9.0g Have you recruited any new skilled employees? (1 =Yes. 2=no). 2002 everfirOS float %9.0g Have you ever fired an unskilled employee? (1 =Yes. 2=no). 2005 everfir02 float %9.0g Have you ever fired an unskilled employee? (1 =Yes. 2=no). 2002 mnewemp05 float %9.0g days needed to hire a new employee to fill an opening 2005 mnewemp02 float %9.0g days needed to hire a new employee to fill an opening 2002 munfir05 float %9.0g no. unskilled employees fired 2005 among firms that have already fired employees munfir02 float %9.0g no. unskilled employees fired 2002 among firms that have already fired employees mdfire05 float %9.0g days needed to fire an unskilled employee 2005 34 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report mdfire02 float %9,Og days needed to fire an unskilled employee 2002 chnemplOS float %9.0g If you could freely change number of employees. how would you do sO.200S? chnempl02 float %9.0g If you could freely change number of employees, how would you do so,2002? mlobsCl str2 %95 One of the labor obstacles is the most important obstacle miobsC2 str2 %95 One of the labor obstacles is the second most important obstacle miobsC3 str2 %9s One of the labor obstacles is the third most important obstacle mlobstA 5tr2 %9s One of the labor obstacles is the fourth most important obstacle mlobstrem float %9,Og % income change if one of the labor obstacles was removed. most important obstac mlobstrem_2 iloat %9.0g % income change if one of the labor obstacles was removed. second most importan mlobstrem_3 float %9.0g % income change if one of the labor obstacles was removed. third most important mlobstrem_ 4 float %9.0g % income change if one of the labor obstacles was removed. fourth most important moagr float %9.0g Initial capital as own money/assets from agriculture. % monorlagr float Initial capital as own money/assets from non-agriculture. % lofo float %9.09 Initial capital formal loan. % loinfo float %9.0g Initial capital informal loan. % gift float %9.0g Initial capital gift.% receivC,) float %9.0g Receivable 200S.current assets and loan structure receivC2 float %9.0g Receivable 2002.current assets and loan structure cashOS float %9.0g Cash 200S.current assets and loan structure cash02 float %9.0g Cash 2002.current assets and loan structure saveOS float %9.0g Savings 200S.current assets and loan structure save02 float %9.0g Savings 2002.current assets and loan structure 10bankJS float %9.0g Loan or credit from bank 2005 lobank:)2 float %9,Og Loan or credit from bank 2002 10suppOS float %9.0g Loan or credit from suppliers 2005 losupp02 float %9.0g Loan or credit from suppliers 2002 IofrfaO'l float %9.0g Loan or credit from friends or family 2005 10frfaO:) float %9.0g Loan or credit from friends or family 2002 100thO:; float %9.0g Loan or credit.other 2005 100thO? float %9.0g Loan or credit.other 2002 loan float %9.0g Enterprises that have ever applied for a loan or credit appl float 1st loan approved app2 float %9.0g 2nd loan approved app3 float %9.0g 3rd loan approved app4 float %9.0g 4th loan approved float %9.0g 5th loan approved app6 float %9.0g 6th loan approved app7 float %9.0g 7th loan approved tapp_y float %9.0g Loan approved. 1.-7.loan tapp_n float %9.09 Loan not approved. 1.-7.1oan tapp_p float %9.0g Loan in process. 1.-7.loan tneedl float %9.0g 1.loan.time needed tneed2 float %9.0g 2.loan.time needed tneed3 float %9.0g 3.1oan.time needed tneedL float 4.1oan.time needed tneed5 float %9.0g S.loan.time needed tneed6 float %9.0g 6.1oan.time needed tneed! float %9.0g 7.loan.time needed Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 35 float No of loans which were granted in less than 1 week. 1.- 7.1oan float No of loans which were granted in less than 1 month. 1 7.loan float No of loans which were granted in less than 3 months. 1." 7.loan No of loans which were granted in less than 6 months. 1.-7.loan float No of loans which were granted in less than 1 year. 1 7.loan float No of loans which were granted in more than 1 year. 1 7.loan source1 float l.1oan. loan source source2 float 2.1oan. loan source source3 float %9.0g 3.1oan. loan source source4 float %9.0g 4.1oan. loan source source5 float %9.0g 5.1oan. loan source source6 float %9.0g 6.1oan. loan source source7 float %9.0g 7.1oan. loan source float %9.og 1.1oan. objective float %9.0g 2.loan. objective float %9.0g 3.loan. objective float %9.0g 4.loan. objective float %9.0g 5.loan. objective float %9.0g 6.loan. objective float %9.0g 7.loan. objective float %9.0g 1.loan. interest rate as a % of loan float %9.0g 2.loan. interest rate as a % of loan float %9.0g 3.loan. interest rate as a % of loan intper4 float %9.0g 4.loan. interest rate as a % of loan float %9.0g 5.loan. interest rate as a % of loan intper6 float %9.0g 6.1oan. interest rate as a % of loan float %9.0g 7.1oan. interest rate as a % of loan inttime1 float Interest in time unit. 1.loan inttime2 float Interest in time unit. 2.1oan inttime3 float Interest in time unit. 3.1oan inttime4 float Interest in time unit. 4.1oan inttime5 float Interest in time unit. 5.loan inttime6 float Interest in time unit. 6.loan inttime7 float Interest in time unit. 7.loan float Tirle unit of interest. weekly float Tirne unit of interest. monthly float Interest of loans in time unit. quarterly float Interest of loans in time unit. biannually float %9.0g Interest of loans in time unit. yearly float Interest type. 1.loan float Interest type. 2.loan float Interest type. 3.loan inttype4 float %9.0g Interest type. 4.loan float %9.0g Interest type. 5.loan float %9.0g Interest type. 6.loan float %9.0g Interest type. 7.loan float %9.0g Interest type. flat (fixed interest) float %9.0g Interest type. flat (fixed interest) amloan float %9.0g Aver. amount received as loan apploan float %9.0g Aver. amount applied for avamloan . float %9.0g Average amount received as loan. corrected avapploan float %9.0g Aver. amount applied for. corrected leloan float %9.0g Aver. lenght of loans. months avleloan float %9.0g Aver. lenght of loans. months. corrected Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report coll_y float %9.0g Collateral used. 1.-7.loan colU float %9.0g Land used as collateral. 1.-7.loan colU float %9.0g Building used as collateral. 1.-7.1oan coll_3 float %9.0g House used as collateral. 1.-7.1oan coiL4 float Machinery used as collateral. 1.-7.1oan col '-5 float %9.0g Other valuable goods used as collateral. 1.-7.1oan coll_6 float %9.0g Other used as collateral. 1.-7.loan loneed noat %9.0g estimated value of loan needed. as %of loan avloneE'd no at %9.0g Average estimated value of loan needed. as %of loan. corrected amrep iloat %9.0g amount repaid. as a percentage of initial loan avamrep iloat Average amount as a percentage of initial loan. corrected aviind float annual interest rate. individual creditor matcred 1loat %9.0g In one year. what % of materials/inputs used are usually paid for with credit? payoff 'loat %9.0g Time it took to payoff the debt fundsp':~nt float %9.0g If having additional funding. what would you spend it primarily on? monbcrr noat %9.0g Amount of money needed to borrow (000 Rp) noborrow !loat noborrowlb Why wouldn't you borrow from a formal financial Institution? fobstOs 'loat %9.0g Obstacles. Financial services. 2005 fobstO; ~loat %9.0g Obstacles. Financial services. change since 2002 mfobst ;tr2 %9s One of the financial obstacles is the most important obstacle mfobsC2 ;tr2 %9s One of the financial obstacles is the second most important obstacle mfobsC3 ;tr2 %9s One of the financial obstacles is the third most important obstacle mfobsc4 ;tr2 %9s One of the financial obstacles is the fourth most important obstacle mfobstrem 'loat %9.0g % income change if one of the financial obstacles was removed, most important obstacle % income change if one of the financial obstacles was removed. second most important obstacle mfobstrem_3 Aoat %9.0g % income change if one of the financial obstacles was removed. third most important obstacle mfobstrem_ 4 "Ioat %9.0g % income change if one of the financial obstacles was removed, fourth most important obstacle methelec float Method of electricity generation used the provider. 2005 avblacL_d float Average days blackouts or power surges experienced in one month. 2005 %9.0g On average how many times do you experience blackouts or power surges in one month 'loat %9.0g /\verage length each blackout lasts (minutes), 2005 lossbla ::k float %9.og Revenue loss from blackouts (000 Rp), 2005 lossblom02 float How did this ioss compare to 2002? neWCOln float %9.0g Did you for a new electricity connection from PLN(and got connected) in 20 elecconn float %9.0g days to get a new electricity connection. 2005 landlo.: float %9.0g Does your business have a land line telephone. 2005 landlO~ float %9.0g Does your business have a land line telephone. 2002 newlandl float Possibility to get a new landline telephone connection. 2005 nwlndcst05 float Cost of getting a new landline telephone connection. 2005 (OOORp) nwlndcst02 float %9.0g Cost of getting a new land line telephone connection. 2002 (OOORp) nwlndclysOS float %9.0g Days to get a new land line telephone connection, 2005 nwinddys02 float %9.0g Days to get a new landline telephone connection. 2002 ceilbizC5 float %9.0g Does anyone in your enterprise use cellular phones to do business, 2005 Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 37 celibiz02 float %9.0g Does anyone in your enterprise use cellular phones to do business. 2002 fax05 float %9.0g Does your Enterprises send/receive faxes. 2005 fax02 float %9.0g Does your Enterprises send/receive faxes. 2002 pc05 float %9.0g Enterprises using a computer in their business. 2005 pc02 float %9.0g Enterprises using a computer in their business. 2002 webs05 float %9.0g Enterprises having/using a website. 2005 webs02 float %9.0g Enterprises having/using a website. 2002 ell'ail05 float %9.0g Enterprises having/using email. 2005 email02 float %9.0g Enterprises having/using ell'ail. 2002 assoc05 float %9.0g Enterprises being a lI'ember of a trade or business association. 2005 assoc02 float %9.0g Enterprises being a member of a trade or business association. 2002 benassoc float %78.0g benassoclb Benefits of joining an association: Information othben str20 %20s Other Benefits of joining an association wasource float %35.0g wasourcelb Water source wacstlc float %9.0g Cost per m3 (000 Rp). local gov. owned pipes wacstpri float %9.0g Cost per m3 (000 Rp). private water Enterprise watime float %9.0g Time needed to get a new pipe connection (days). PDAM miobsCl str2 %9s One of the infrastructure obstacles is the most important obstacle miobsC2 str2 %9s One of the infrastructure obstacles is the second most ill'portant obstacle miobsC3 str2 %9s One of the infrastructure obstacles is the third rrost ill'portant obstacle miobsC4 str2 %9s One of the infrastructure obstacles is the fourth rrost important obstacle miobstrem float %9.0g % income change if one of the infrastructure obstacles was rell'oved. most importa rriobstrell'_2 float %9.0g % income change if one of the infrastructure obstacles was removed. second most miobstrem_3 float %9.0g % income change if one of the infrastructure obstacles was rerroved. third 1I'0st lI'iobstrem_4 float %9.0g % income change if one of the infrastructure obstacles was removed. fourth 1I'0st comp float %9.0g Type of corrpany locsls05_p float %9.0g Location of where the majority of total sales are rrade to consumers. processing locsls02_p float %9.0g Location of where the rrajority of your total sales are rrade to onsurrers.process sld05_p float %9.0g Total dorrestic sales. %.2005. processing firrr totsld05_p float %9.0g Total domestic sales. %. 2005. processing firm. corrected pgvsld05_p float %9.0g % of sales sold to governrrent. 2005 ptrasld05_p float %9.0g % of sales sold to traders. 2005 pmulsld05_p float %9.0g % of sales sold to domest. multinational enterpr.. 2005 pparsld05_p float %9.0g % of sales sold to parent enterpr. or branch of this enterpr.. 2005 plarsld05_p float %9.0g % of sales sold to large domes. enterpr. (>300 workers). 2005 pagrsld05_p float %9.0g % of sales sold to agricultural enterpr.. 2005 pconsld05_p float %9.0g % of sales sold to consurrers. 2005 pothsld05_p float %9.0g % of sales sold to other. 2005 sld02_p float %9.0g Total domestic sales. %. 2002. processing firm totsld02_p float %9.0g Total domestic sales. %. 2002. processing firrr. corrected pgvsld02_p float %9.0g % of sales sold to government. 2002 ptrasld02_p float %9.0g % of sales sold to traders. 2002 pmulsld02_p float %9.0g % of sales sold to dOll'est. multinational enterpr.. 2002 pparsld02_p float %9.0g % of sales sold to parent enterpr. or branch of this enterpr.. 2002 38 Result of The Rural Investment Climate Assessment (RICA) in Indones;a - Final Report plarsld02_p float %9.0g % of sales sold to large domes. enterpr. (>300 workers). 2002 pagrsld02_p float %9.0g % of sales sold to agricultural enterpr.. 2002 pconsld02_p float %9.0g % of sales sold to consumers. 2002 pothsld02_p foat %9.0g % of sales sold to other. 2002 pcontr05_p float %9.0g % of sales based on written or verbal contracts. processing firm. 2005 pcontr02_p float % of sales based on written or verbal contracts. processing firm. 2002 10cinpO'i_p float %9.0g Location where inputs used are made at. processing firm. 2005 10cinpO:;_p foat %9.0g Location where inputs used are made at. processing firm. 2002 pincon05_p f oat %9.0g % of material inputs bought through agreements or contracts. processing firm pinconCl2_p float %9.0g % of material inputs bought through agreements or contracts. processing firm mat05_o f'oat %9.0g tmat05 ..p foat %9.0g Total material goods bought.%. 2005 unpr05...p foat %9.0g % unprocessed agricultural goods of material goods bought. 2005 pr05_p float %9.0g % processed agricultural goods of material goods bought. 2005 non05_p float %9.0g % non-agricultural goods of material goods bought. 2005 mat02_p foat %9.0g Total material goods bought.%. 2002 tmat02._p float %9.0g Total material goods bought.%. 2002. corrected unpr02.. p foat %9.0g % unprocessed agricultural goods of material goods bought. 2002 pr02_p float %9.0g % processed agricultural goods of material goods bought. 2002 non02_p float %9.0g % non-agricultural goods of material goods bought. 2002 compvill_p ~tr1 %9s monthly average of competitors. same village. processing firm suppvilLp 5tr1 %9s monthly average of suppliers. same village. processing firm buyvill_p 5tr1 %9s monthly average of buyers. same village. processing firm compsubd_p 5tr1 %9s monthly average of competitors. same subdistrict processing firm suppsuod_p str1 %9s monthly average of suppliers. same subdistrict. processing firm buysub::Cp str1 %9s monthly average of buyers. same subdistrict. processing firm compd s_p 5tr1 %95 monthly average of competitors. same district. processing firm suppdi~_p 5tr1 %9s monthly average of suppliers. same district. processing firm buydis_p 5tr1 %95 monthly average of buyers. same district. processing firm compp'_p str1 %9s monthly average of competitors. same province. processing firm SUpPU) 5tr1 %95 monthly average of suppliers. same province. processing firm buypr_J str1 %9s monthly average of buyers. same province. processing firm pr_p float %9.0g Problems with competitors. suppliers or buyers in the last 3 years. processing firm solpU: float %56.0g solpr_plb Way of solving these problems. processing firm 10cslsO':;_t float %9.og Location of where the majority of commodities are sold. trade company. 2005 locsls02_t float %9.0g Location of where the majority of commodities are sold. trade company. 2002 sld05_t float %9.0g Total domestic sales. %. 2005. trade company totsldOCU float %9.0g Total domestic sales. %. 2005. trade company. corrected pgvsld05_t float %9.0g % of sales sold to government. 2005 pmulslc05_t float %9.0g % of sales sold to domest. multinational enterpr.. 2005 pparsld05_t float %9.0g % of sales sold to parent enterpr. or branch of this enterpr.. 2005 plarsld05_t float %9.0g % of sales sold to large domes. enterpr. (>300 workers). 2005 pagrslc05_t float %9.0g % of sales sold to agricultural enterpr.. 2005 pconsld05_t float %9.0g % of sales sold to consumers. 2005 pothslcl05_t float %9.0g % of sales sold to other. 2005 sld02_t float %9.0g Total domestic sales. %.2002. trade company totsld02_t float %9.0g Total domestic sales. %. 2002. trade company. corrected pgvsld02_t float %9.0g % of sales sold to government. 2002 pmulsld02_t float %9.0g % of sales sold to domest. multinational enterpr" 2002 _ . _ - - - - - - _ ...._ - _ . Result of The Rural Investment Climate Assessment (RICA) in Indonesia· Final Report 39 pparsld02_t float % of sales sold to parent enterpr, or branch of this enterpr.. 2002 plarsld02_t float %9,Og % of sales sold to large domes. enterpr. (>300 workers), 2002 pagrsld02_t float %9,Og % of sales sold to agricultural enterpr.. 2002 pconsld02_t float %9.0g % of sales sold to consumers. 2002 pothsld02_t float %9.0g % of sales sold to other. 2002 pcontr05_t float %9.0g % of commodity sales based on written or verbal contracts, trade firm. 2005 float %9.0g % of commodity sales based on written or verbal contracts. trade firm. 2002 locinp05_t float Location where commodities sold are bought at. trade firm. 2005 locinp02_t float %9.0g Location where commodities sold are bought at. trade firm. 2002 pincon05_t float %9.0g % of commodities bought through agreements or contracts. trade firm. 2005 float %9.0g percentage of commodities bought through agreements or contracts. trade firm, 200 sal05_t Aoat %9.0g Total of Enterprise's sales,%. 2005 tsal05_t float %9.0g Total of Enterprise's sales,%. 2005, corrected unpr05_t Aoat %9.0g % unprocessed agricultural goods of total sales. 2005 float %9.0g % processed agricultural goods of total sales. 2005 non05_t float % non-agricultural goods of total sales. 2005 sal02_t float %9.0g Total of sales,%.2002 tsal02_t float %9.0g Total of Enterprise's sales,%, 2002, corrected unpr02_t float %9,Og % unprocessed agricultural goods of total sales, 2002 pr02_t Aoat %9.0g % processed agricultural goods of total sales. 2002 non02_t float %9.0g % non-agricultural goods of total sales. 2002 compvilU str1 %95 monthly average of competitors, same village. trade firm suppvilU str1 %9s monthly average of suppliers. same village, trade firm str1 %9s monthly average of buyers. same village, trade firm compsubd_t str1 %9s monthly average of competitors, same subdistrict. trade firm suppsubd_t str1 %9s monthly average of suppliers. same subdistrict. trade firm buysubd_t str1 %9s monthly average of buyers. same subdistrict. trade firm compdis_t str1 %95 monthly average of competitors. same district. trade firm suppdis_t str 1 %9s monthly average of suppliers. same district. trade firm buydis_t str1 %9s monthly average of buyers, same district trade firm comppu str1 %95 monthly average of competitors, same province, trade firm suPPu str1 %9s monthly average of suppliers. same province. trade firm buyPU str1 %9s monthly average of buyers. same province. trade firm PU float Problems with competitors. suppliers or buyers in the last 3 years, trade firm solpU float %66.0g solpUlb Way of solving these problems. trade firm locsls05_5 Aoat %9,Og Location of where the majority of sales are made, Service Enterprise, 2005 float %9.0g Location of where the majority of sales are made. Service Enterprise. 2002 sld05_s Aoat %9,Og Total domestic sales, %. 2005. service ent. totsld05_s float %9,Og Total domestic sales, %. 2005. service enL corrected pgvsld05_s float %9,Og % of sales sold to government. 2005, service ent. pmulsld05_s Aoat %9.0g % of sales sold to domest. multinational enterpr.. 2005. service ent. pparsld05_s float %9.0g % of sales sold to parent enterpr. or branch of this enterpr.. 2005, service ent float %9,Og % of sales sold to large domest. enterpr, (>300 workers), 2005. service ent. pagrsld05 _s Aoat %9,Og % of sales sold to agricultural enterpr.. 2005. service ent. pconsld05_s float %9,Og % of sales sold to consumers. 2005, service ent. 40 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report pothsld05_s float %9.0g % of sales sold to other. 2005. service ent. sld02_s fl oat %9.0g Total domestic sales. %. 2002. service ent. float Total domestic sales. %. 2002. service ent. corrected pgvsld02_s float % of sales sold to government. 2002. service ent. pmulsld02_s float %9,Og % of sales sold to domest. multinational enterpr.. 2002. service ent, pparsldClLs float %9.0g % of sales sold to parent enterpr. or branch of this enterpr.. 2002. service ent float %9,Og % of sales sold to domes, enterpr. (> 300 workers). 2002. service ent. pagrsld02_s float %9,Og % of sales sold to agricultural enterpr.. 2002. service ent. pconsld float %9.0g % of sales sold to consumers. 2002. service ent. pothsldC2_s float %9,Og % of sales sold to other. 2002. service ent. pcontrO:i_s foat %9.0g % of commodity sales based on written or verbal contracts. Service Enterprise. 2005 pcontrO 2_s float %9,Og % of commodity sales based on written or verbal contracts. Service Enterprise. 2002 serv05_; Aoat %9.og Total income. %. 2005. service ent. tserv05_5 Aoat %9.0g Total income. %. 2005, service ent.. corrected phot05_5 float %9.0g % of income from hotels. 2005 float %9.0g % of income from restaurants. 2005 ptransO:)_s float %9.0g % of income from transportation. 2005 pfinanO:~_s float %9.0g % of income from financial services. 2005 pothbu<;C15_s float % of income from other business serv.. 2005 ppriv05_s float %9.0g % of income from private individ, serv.. 2005 float %9.0g Total income. %. 2002, service ent tserv02_5 float %9.og Total income. %. 2002, service en!.. corrected phot02_5 Aoat %9.0g % of income from hotels, 2002 prest02__s foat %9.0g % of income from restaurants. 2002 ptransO,)_s foat % of income from transportation, 2002 pfinan02_s float %9.0g % of income from financial services. 2002 pothbu';02_s float %9.0g % of income from other business serv.. 2002 float %9,Og % of income from private individ. serv.. 2002 mmobs' str2 %95 One of the market obstacles is the most important obstacle mmobs:_2 s:r2 %9s One of the market obstacles is the second most important obstacle mmobs:_3 str2 %95 One of the market obstacles is the third most important obstaCle mmobs:_4 str2 %95 One of the market obstacles is the fourth most important obstacle mmobs:rem f oat %9.0g % income change if one of the market obstacles was removed, most important obstacle mmobs:rem__ 2 float %9.0g % income change if one of the market obstacles was removed. second most important obstacle mmobs:rem__ 3 fioat % income change if one of the market obstacles was removed. third most important obstacle mmobs:rem_4 fioat %9,Og % income change if one of the market obstacles was removed, fourth most important obstacle innmntl- float %9.0g Year the innovation was implemented innyr float mtobsCl str2 %95 One of the technology obstacles is the most important obstacle mtobst2 str2 %9s One of the technology obstacles is the second most important obstacle mtobsC3 str2 %9s One of the technology obstacles is the third most important obstacle mtobstA str2 %95 One of the technology obstacles is the fourth most important obstacle Result of The Rural Investment Climate Assessment (RICA) in Indones;a - Finai Report 41 mtobstrem_l float %9.0g % income change if one of the technology obstacles was removed. most important 0 mtobstrem_2 float %9.0g % income change if one of the technology obstacles was removed. second most imp mtobstrem_3 float %9.0g % income change if one of the technology obstacles was removed. third most impo mtobstrem_4 float %9.0g % income change if one of the technology obstacles was removed. fourth most impo cgov05 float %9.0g Total Central governmentTaxes. 2005 inct05_c float %9.0g Income tax. 0/0. 2005 landt05_c float %9.0g Land & Buildings Tax. %. 2005 valad05_c float %9.0g Value added tax. %.2005 cust05_c float %9.og Customs. %. 2005 otht05_c float %9.0g other taxes by central gov.. %.2005 unofft05_c float %9.0g Unofficial levies by centr. gov.. 0/0. 2005 cgov02 float %9.0g Total Central governmentTaxes. 2002 inct02_c float %9.0g Income tax. %. 2002 landt02_c float %9.0g Land & Buildings Tax. %. 2002 valad02_c float %9.0g Value added tax. %. 2002 cust02_c float %9.0g Customs. %. 2002 otht02_c float %9.0g other taxes central gov.. %. 2002 unofft02_c float %9.0g Unofficial levies by centr. gov.. %. 2002 pgov05 float %9.0g Total province government Taxes. 2005 veht05_p float %9.0g Motorized vehicle tax.%. 2005 chvehownt05_p float %9.0g Tax on changing vehicle ownership. %. 2005 otht05_p float %9.og Other taxes by province gov.. %. 2005 unofft05_p float %9.0g Unofficial levies by province gov.. %. 2005 pgov02 float %9.0g Total province governmentTaxes. 2002 veht02_p float %9.0g Motorized vehicle tax.%. 2002 float %9.0g Tax on changing vehicle ownership. %. 2002 otht02_p float %9.0g Other taxes by province gov.. %.2002 unofft02_p float %9.0g Unofficial levies by province gov.. %. 2002 rgov05 float %9.0g Total government Taxes. 2005 hot05_r float %9.0g Hotel taxes. %. 2005 restOS_r float %9.0g Restaurant taxes. %. 2005 enter05_r float %9.0g Entertainment taxes. %,2005 advert05_r float %9.0g Advertising taxes. %. 2005 cmin05_r float %9.og Class C mining taxes. %. 2005 otht05_r float %9.0g Other gov. taxes. 0/0. 2005 unofft05_r float %9.0g Unofficial levies. %. 2005 rgov02 float %9.0g Total governmentTaxes.2002 hot02_r float %9.og Hotel taxes. %. 2002 rest02_r float %9.0g Restaurant taxes. %. 2002 enter02_r float %9.0g Entertainment taxes. %. 2002 advert02_r float %9.0g taxes. %. 2002 cmin02_r float %9.0g Class C mining taxes, %. 2002 otht02_r float %9,Og Other regional gov. taxes. %, 2002 unofft02_r float %9.0g Unofficial levies. %, 2002 othlev05 float %9.0g Total Other Levies. 2005 secoff05_0 float %9.0g Levies to security officials. %. 2005 thug05_0 float %9.0g Levies to thugs, %,2005 vi IIoff05_0 float %9.0g Levies to sub-region and/or village officials. %, 2005 otht05_0 float %9.0g Other Levies. %. 2005 othlev02 float %9,Og Total Other Levies. 2002 42 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report ............................... secoff02_0 float %9.0g Levies to security officials. %. 2002 thug02_0 float %9.0g Levies to thugs. %. 2002 vii Ioff0 2_0 float %9.og Levies to sub-region and/or village officials. %. 2002 otht02_o float %9.0g Other Levies. %. 2002 tottaxO: float %9.0g Total Taxes and Levies. 2005 p_cgov05 float %9.0g Sub total central gov. taxes. %. 2005 p_pgovJ5 float %9.0g Sub total province gov, taxes. %, 2005 p_rgovOS float %9,Og Sub total region gov. taxes. %,2005 p_othlev05 float %9.0g Sub total Other Levies, %. 2005 tottaxO~ float %9.0g Total Taxes and Levies, 2002 p_cgov(12 foat %9.0g Sub total central gov, taxes. %. 2002 p_pgovQ2 foat %9,Og Sub total province gov, taxes. %, 2002 p_rgov02 float %9.0g Sub total region gov, taxes. %, 2002 p_othlev02 float %9.0g Sub total Other Levies, %,2002 perm_y float %9,Og Permit received, all different fields reabldprm float %9,Og Reason for which enterprise does not have Building permit reaindprm float %9.og Reason for which enterprise does not have Industrial permit reaentreg foat %9,Og Reason for which enterprise does not have enterprise registration reatrdprm float %9,Og Reason for which enterprise does not have trade permit reaeleccr pp float %9.0g Reason for which enterprise does not have commercial electr. connect. reasfeprm float Reason for which enterprise does not have Work safety permit/P2K3 reaotha float %9.0g Reason for which enterprise does not have other a permit reaotht float %9,Og Reason for which enterprise does not have other b permit reaothc float %9,Og Reason for which enterprise does not have other c permit necbldr;rm float %9,Og Is Building permit necessary? 1=Yes/2=No/3=1 dont know necindprm float %9,Og Is Industrial permit necessary? 1=Yes/2=I\lo/3=1 don't know necentreg float %9.og Is Enterprise registration necessary? 1=Yes/2=No/3=1 don't know nectrd~'rm float %9.0g Is Trade permit necessary? 1=Yes/2=No/3=1 dont know necelecapp float %9,Og Is Applic for a commercial electr, connect. necessary? 1=Yes!2=No/ 3=1 don't know necsfer: rm float %9,Og Is Work safety permitlP2K3 necessary? 1=Yes/2=No/3=1 don't know necbldprm_'Y float %9.0g Is Building permit necessary for case that firm has permit? 1=Yesl 2=No/3=1 don't know necbldprm_'l float %9.0g Is Building permit necessary for case that firm does not have permit? 1=Yes/2=No/3=1 don't know necindprm_l float %9,Og Is Industrial permit necessary for case that firm has permit? 1=Yes/ 2=No13=1 don't know necindprm_ l tloat %9.0g Is Industrial permit necessary for case that firm does not have permit? 1=Yes!2=No/3=1 don't know necentr eg_y float %9.0g Is enterprise registration necessary for case that firm has permit? 1=Yes/2=No/3=1 don't know necentreg_n float %9.0g Is enterprise registration necessary for case that firm does not have permit? 1=Yes/2=No/3=1 don't know nectrdprm_y float %9.0g 15 trade permit necessary for case that firm has permit} 1=Yes!2=No/ 3=1 don't know nectrdprm_n float %9.og Is trade permit necessary for case that firm does not have permit! 1=Yes/2=No/3=1 don't know necelecapp_y float %9,Og Is Applic. for a commercial electr. connect. necessary for case that firm has permit necelecapp_n float %9.0g Is Applic for a commercial electr. connect necessary for case that firm does not have permit necsfeprm_y float %9.0g Is Work safety permit/P2K3 necessary for case that firm has permit? 1=Yes/2=No/3=1 don't know ~- ....- - , - . Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report 43 necsfeprm_n float %9.0g Is Work safety permit/P2K3 necessary for case that firm does not have permit? 1=Yes!2=No/3=1 don't know necotha_y float %9.0g Is other a permit necessary for case that firm has permit? 1=Yesl 2=No/ 3=1 don't know necotha_n float %9.0g Is other a permit necessary for case that firm does not have permit! I =Yes/2=No/3=1 don't know necothb_y float Is other b permit necessary forcase that firm has permit? 1=Yesl 2=No/3=1 don't know float %9.0g Is other b permit necessary for case that firm does not have permit7 1=Yes/2=No/3=1 don't know necothc_y float %9.0g Is other c permit necessary for case that firm has permit! 1=Yesl 2=No/3=1 dont know float %9.0g Is other c permit necessary for case that firm does not have permit? 1= Yes/2=No/3=1 don't know mbldprm float %9.0g Month of building permit most recently issued ybldprm float %9.0g Year of building permit most recently issued mindprm float %9.0g Month of Industrial permit most recently issued yindprm float Year of Industrial permit most recently issued mentreg float %9.0g Month of enterprise registration most recently issued yentreg float %9.0g Year of enterprise registration most recently issued mtrdprm float %9.0g Month of trade permit most issued ytrdprm float %9.0g Year of trade permit most recently issued melecapp float %9.0g Month of Applic. for a commercial electr. connect. most recently issued float Year of Applic. for a commercial electr. connect. most recently issued msfeprm float %9.0g Month of Work safety permitlP2K3 most recently issued ysfeprm float %9.0g Year of Work safety permit/P2K3 most recently issued motha float %9.0g Month of other a permit most recently issued yotha float %9.0g Year of other a permit most issued mothb float Month of other b permit most recently issued yothb float %9.0g Year of other b permit most recently issued mothc float %9.0g Month of other c permit most recently issued yothc float %9.0g Year of other c permit most recently issued whbldprm float %9.0g Where do you obtain or register for building permit whindprm float %9.0g Where do you obtain or register for industrial permit whentreg float %9.0g Where do you obtain or for enterprise registration whtrdprm float Where do you obtain or register for trade permit whelecapp float %9.0g Where do you obtain or register for Applic. for a commercial electr. connect. wrsfeprm float %9.0g Where do you obtain or register for Work permit/P2K3 whotha float %9.0g Where do you obtain or register for other a permit whothb float %9.0g Where do you obtain or register for other b permit whothc %9.0g Where do you obtain or for other c permit float Validity (years). building permit vindprm float %9.0g Validity (years). industrial permit ventreg float %9.0g Validity (years). enterprise registration vtrdprm float %9.0g Validity (years). trade permit velecapp float Validity (years). Applic. for a commercial electr. connect. vsfeprm float (years). Work safety permitlP2K3 votha float %9.0g (years). other a vothb float %9.0g Validity (years). other b permit vothc float %9.0g Validity (years). other c permit tbldprm float %9.0g Time to the last building permit (work days) tindprm float %9.0g Time to the last industrial permit (work days) 44 Result of The Rural Investment Climate Assessment (RICA) in Indonesia Final Report - ----. tentreg float %9.0g Time to get the last enterprise registration (work days) ttrdprm float %9.0g Time to get the last trade permit (work days) telecapp float %9.0g Time to get the last Applic. for a commercial electr. connect (work days) tsfeprm float %9.0g Time to get the last Work safety permitlP2K3 (work days) totha float %9.0g Time to get the last other a permit (work days) tothb float %9.0g Time to get the last other b permit (work days) tothc float %9.0g Time to get the last other c permit (work days) tbldprmc float %9.0g Compared to 2002. time to obtain bUilding permit tindprmc float %9.0g Compared to 2002. time to obtain industrial permit tentregc float %9.0g Compared to 2002. time to obtain enterprise registration ttrdprmc float %9.0g Compared to 2002. time to obtain trade permit telecappc float %9.0g Compared to 2002. time to obtain Applic. for a commercial electr. connect. tsfeprmc float %9.0g Compared to 2002. time to obtain Work safety permitlP2K3 tothac float %9.0g Compared to 2002. time to obtain other a permit tothbc float %9.0g Compared to 2002. time to obtain other b permit tothcc float %9.0g Compared to 2002. time to obtain other c permit cstbldprrr float %9.0g Cost to obtain last building permit (Rp). after Dec.2004 cstindprrr float %9.0g Cost to obtain last industrial permit (Rp). after Dec.2004 cstentreg float %9.0g Cost to obtain last enterprise registration (Rp). after Dec.2004 csttrdprm float %9.0g Cost to obtain last trade permit (Rp). after Dec.2004 cstelecapp float %9.0g Cost to obtain last commercial electr. connect (Rp). after Dec.2004 cstsfeprm float %9.0g Cost to obtain last Work safety permit/P2K3 (Rp). after Dec.2004 cstotha float %9.0g Cost to obtain last other a permit (Rp). after Dec.2004 cstothb float %9.0g Cost to obtain last other b permit (Rp). after Dec.2004 cstothc float %9.0g Cost to obtain last other c permit (Rp). after Dec.2004 cstbldprmc: float %9.0g Current cost compared to 2002. building permit after Dec.2004 cstindprm:: float %9.0g Current cost compared to 2002.industrial permit. after Dec.2004 cstentregc float %9.0g Current cost com'pared to 2002. enterprise registration. after Dec.2004 csttrdprmc float %9.0g Current cost compared to 2002. trade permit. after Dec.2004 cstelecapi=C float %9.0g Current cost compared to 2002. commercial electr. connect. after Dec.2004 cstsfeprmc float %9.0g Current cost compared to 2002. Work safety permitlP2K3. after Dec.2004 cstothac float %9.0g Current cost compared to 2002. other a permit. after Dec.2004 cstothbc float %9.0g Current cost compared to 2002. other b permit. after Dec.2004 cstothcc float %9.0g Current cost compared to 2002. other c permit after Dec.2004 unbldprm float %9.0g Tot. unoff. fees paid. bUilding permit (Rp). after Dec.2004 unindprm float %9.0g Tot.unoffJees paid. industrial permit (Rp). after Dec.2004 unentreg float %9.0g TotunoffJees paid. enterprise registration (Rp). after Dec.2004 untrdprm float %9.0g Tot.unoffJees paid. trade permit (Rp). after Dec.2004 unelecapp float %9.0g Tot.unoff.fees paid. commercial electr. connect. (Rp). after Dec.2004 unsfeprm float %9.0g Tot.unoff.fees paid Work safety permitlP2K3 (Rp). after Dec.2004 unotha float %9.0g Tot.unoffJees paid. other a permit (Rp). after Dec.2004 unothb float %9.0g TotunoffJees paid. other b permit (Rp). after Dec.2004 unothc float %9.0g Tot.unoffJees paid. other c permit (Rp). after Dec.2004 unbldprmc float %9.0g Unoff. fees compared to 2002. bUilding permit after Dec.2004 unindprmc float %9.0g Unoff. fees compared to 2002. industrial permit. after Dec.2004 unentregc float %9.0g Unoff. fees compared to 2002. enterprise registration. after Dec.2004 untrdprmc float %9.0g Unoff. fees compared to 2002. trade permit. after Dec.2004 Result of The Rural Investment Climate Assessment (RICA) in Indonesia· Final Report 45 unelecappc float %9.0g Unoff. fees compared to 2002. commercial electr. connect..after Dec.2004 unsfeprmc float %9.og Unoff. fees compared to 2002. Work safety permit/P2K3. after Dec.2004 unothac float %9.0g Unoff. fees compared to 2002. other a permit. after Dec.2004 unQthbc float %9.0g Unoff. fees compared to 2002. other b permit. after Dec.2004 unothcc float %9.0g Unoff. fees compared to 2002. other c permit. after Dec.2004 mgobsCl str2 %9s One of the government obstacles is the most important obstacle mgobsC2 str2 %9s One of the government obstacles is the second most important obstacle mgobsC3 str2 %9s One of the government obstacles is the third most important obstacle mgobsC4 str2 %9s One of the government obstacles is the fourth most important obstacle mgobstrem_l float %9.0g % income change if one of the government obstacles wa~ removed. most important 0 mgobstrem_2 float %9.0g % income change if one of the government obstacles was removed. second most imp mgobstrem_3 float %9.0g % income change if one of the government obstacles was removed. third most impo mgobstrem_4 float %9.0g % income change if one of the government obstacles was removed. fourth most impo 46 Result of The Rural Investment Climate Assessment (RICA) in Indonesia - Final Report