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Kepolisian Indonesia menahan delapan dari kematian mahasiswa Timor Leste di Jogjakarta

Polisi Indonesia telah menangkap delapan orang yang dicurigai melakukan pembunuhan terhadap seorang pelajar Timor Leste, Joao Bosco di Pro...

09 November 2010

Doing Business 2011 in Timor-Leste

Lao Hamutuk Dili 20/11/2010 For those without the time to read the World Bank's 267-page "Doing Business 2011" report, La'o Hamutuk has excerpted what it says about Timor-Leste (in addition to the improvements in the courts highlighted in the Bank's press release below). It's not a pretty picture.

Table 1.2: Rankings on the ease of doing business:
DB2011  Timor-Leste ranks 174 out of 183  (9 African countries are worse)
DB2010  Timor-Leste ranked the same 174 out of 183 in last year's report.
Reforms: 1  (scores range from 0 to 4)

Table 3.4: Paid-in minimum capital to start a business
In Timor-Leste, you need USD$5,000 = 921% of annual GNI per capita. This is the highest in the world. (Niger is second at 613%.)

Table 5.1: Where is registering property easy—and where not? (average of procedures, time and cost)
Timor-Leste ranks among the most difficult -- 180 out of 183 (Micronesia, Marshall Islands and Brunei are worse)

Table 6.1: Where is getting credit easy—and where not? (sum of the strength of legal rights index and the depth of credit information index)
Timor-Leste is the second most difficult -- 182 out of 183  (Palau is worse)

Page 50: "In East Asia and the Pacific half the economies have no credit bureau or registry, scoring 0 on the depth of credit information index. But things are improving. Timor-Leste is working to make its new public credit registry fully operational. ..."

Table 6.4: Who has the most credit information and the most legal rights for borrowers and lenders—and who the least?
Timor-Leste is in a 4-way tie for third-worst (only Palau and West Bank/Gaza are worse)

Table 8.3: Who makes paying taxes easy and who does not—and where is the total tax rate highest and lowest?
Timor-Leste is 8th best in number of payments per year, at  6.
Timor-Leste has the lowest total tax rate, at 0.2% of profit. (Vanuatu is next at 8.4%)
[See the box on for La'o Hamutuk's comment on these figures.]

Table 10.1: Where is enforcing contracts easy —and where not? (procedures, time and cost to resolve a commercial dispute through the courts.)
Timor-Leste is the worst in the world.

Table 10.4: Who makes enforcing contracts easy—and who does not?
Timor-Leste is the fifth worst in the world in number of procedures (51, better than Brunei, Syria, Sudan and Kosovo).
Timor-Leste is the 10th slowest in the world, at 1,285 days.
Timor-Leste is the most expensive in the world, with cost at 163.2% of claim.

Table 12.1: Who makes getting electricity easy—and who does not?
Timor-Leste is in a 9-way tie for best, with only three procedures.
[Apparently the Bank doesn't know that it is impossible to get electricity in most of the country, and that service is intermittent even in the capital.]
The cost of getting an electric connection (7,389% of annual per capita income) in Timor-Leste is the 12th highest in the world.

Country Table for Timor-Leste (East Asia & Pacific)
Gross National Income (GNI) per capita (US$) 543
Ease of doing business (rank) 174
Lower middle income
Population (m) 1.1

Starting a business (rank) 167
Procedures (number) 10
Time (days) 83
Cost (% of income per capita) 18.4
Minimum capital (% of GNI per capita) 921.3

Dealing with construction permits (rank) 128
Procedures (number) 22
Time (days) 208
Cost (% of GNI per capita) 138.2

Registering property (rank) 183
Procedures (number) NO PRACTICE
Time (days) NO PRACTICE
Cost (% of property value) NO PRACTICE

Getting credit (rank) 182
Strength of legal rights index (0-10) 1
Depth of credit information index (0-6) 0
Public registry coverage (% of adults) 0.0
Private bureau coverage (% of adults) 0.0

Protecting investors (rank) 132
Extent of disclosure index (0-10) 3
Extent of director liability index (0-10) 4
Ease of shareholder suits index (0-10) 5
Strength of investor protection index (0-10) 4.0

Paying taxes (rank) 20
Payments (number per year) 6
Time (hours per year) 276
Total tax rate (% of profit) 0.2

Trading across borders (rank) 91
Documents to export (number) 6
Time to export (days) 25
Cost to export (US$ per container) 1,010
Documents to import (number) 7
Time to import (days) 26
Cost to import (US$ per container) 1,015

Enforcing contracts (rank) 183
Procedures (number) 51
Time (days) 1,285
Cost (% of claim) 163.2

Closing a business (rank) 183
Time (years) NO PRACTICE
Cost (% of estate) NO PRACTICE
Recovery rate (cents on the dollar) 0.0

The complete report is available at .

A table of Timor-Leste data is at, which contains some additional information, such as that between 2010 and 2011, Timor-Leste dropped 45 places in the ranking on Dealing with Construction Permits.

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