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Indonesia has never been known for ease of doing business, but certain regions and cities are beginning to understand the importance of making it simpler for entrepreneurs to get started.

The fact that several cities around the nation ranked higher than Jakarta in the latest International Finance Corporation report speaks volumes about the progress being made in the regions and the slow pace of reform in the capital. The survey serves as a useful barometer on the progress achieved and how much further certain areas have still to go to make doing business easier.

Yogyakarta is ranked as the easiest Indonesian city in which to start a business, way ahead of the capital, which ranks only seventh of the 14 cities surveyed by the IFC.

Even cities such as Manado and Makassar would rank well globally based on the number of days to get building construction permits and to register properties to start an enterprise.

Yogyakarta only requires eight procedures for a business to get a building permit, putting the city in fifth position globally in that category. Entrepreneurs in Jakarta, meanwhile, have to suffer through 14 procedures to get a similar result. A business permit takes 43 days to issue in Yogyakarta, at a cost of about 29 percent of the national income per capita of around Rp 21.4 million [$2,268]. By comparison, a business permit in Jakarta takes 64 days, although the cost is slightly less.

Clearly cities such as Yogyakarta, Manado and Makassar are doing something right. Jakarta on the other hand has still has much room for improvement.

Ensuring that entrepreneurs can set up businesses easily and quickly is the fastest and surest way to achieve higher economic growth. Businesses create jobs and add value. They also contribute to government revenue through taxes. It thus makes sense for the government to cut red tape and streamline procedures.

Jakarta, particularly in light of its role as one of the country’s center of trade and business, should make more serious efforts to improve its ranking in the survey. Unfortunately, Jakarta is the city that represents Indonesia on the global list and consequently the country’s world rank is way down in 122nd place.

Indonesia’s poor ranking becomes more pronounced when compared to some neighboring countries in Southeast Asia. Its immediate neighbor, Singapore is at the top of the list, Thailand sits in 12th place and Malaysia is not too far behind in 23rd.

Investors will go to countries that appreciate and welcome them. Making it easier for people to start up businesses should be a top government priority. And not merely in words. The IFC report should spur the central and Jakarta governments to hasten administrative reforms.