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2025 Business Regulatory Impact Report The Energy Sector

A dynamic and well-functioning private sector should, hopefully, play a pivotal role in alleviating extreme poverty and promoting inclusive economic growth within a sustainable global framework. By fostering innovation and entrepreneurial activity, the private sector has the potential to expand economic opportunities—particularly among underserved populations—while also supporting a more efficient and responsible use of natural resources.

Currently, in developing economies such as Indonesia, the private sector accounts for approximately:

  • 90% of employment,
  • 75% of capital investment,
  • Over 70% of total economic output, dan
  • More than 80% of government revenue.

However, the momentum of this vital sector has slowed markedly since the 2008–2009 global financial crisis. Private investment has weakened significantly within Indonesia, with per-capita investment growth projected to average just 3.7% between 2023 and 2024, which is roughly half the pace observed during the previous twenty years.

While it is crucial for the private sector to perform well for the sake of economic and social development, other external factors—in addition to internal company operations—may also affect the performance of specific business sectors within the country.

These factors are specifically addressed in the 2024 Business Ready Report (B-Ready), a new data collection and analysis initiative by the World Bank Group that assesses the overall business and investment climate worldwide. This report follows the legacy of the World Bank’s previous Ease of Doing Business Report.

According to B-Ready, three key pillars influence a country’s business performance:

  1. Regulatory frameworks, as determined by the government
  2. Public services, and
  3. Operational efficiency

Source:

https://dml.or.id/wp-content/uploads/2025/06/ILD-2025-Business-Regulatory-Impact-Report-The-Energy-Sector-.pdf

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