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Integrated online licensing set for launch
After a month’s delay, the government has set May 20 as the launch date for the online single submission (OSS) system, a web-based platform that will integrate all business licensing, and enable the simultaneous issuance of permits
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fter a month’s delay, the government has set May 20 as the launch date for the online single submission (OSS) system, a web-based platform that will integrate all business licensing, and enable the simultaneous issuance of permits.
The new system, set for launch on May 20, is designed to integrate all licensing processes at central and regional government level, cutting the long procedures businesspeople have had to endure when applying for permits.
With the new platform, investors can apply for a license anywhere, so they do not have to shift the process back and forth between central and regional administrations.
Investors will also be able to monitor the progress of their applications, whether they are still being processed by relevant ministries or agencies, or have been shifted to the regional administrations where their future businesses will be located.
Coordinating Economic Minister Darmin Nasution said the central and regional governments were ready to implement the new platform as they had nearly completed the two biggest stages required before the launch.
The two stages are the establishment of task forces that would supervise the new platform implementation as well as revision of existing regulations, Darmin said.
“All 34 provinces and also 422 out of 514 regencies and municipalities have already established their task forces, so it is 82 percent [complete],” he said after a Cabinet meeting at the Presidential Palace on Wednesday.
“For the [system] reform, the ministries and agencies also have simplified their rules.”
At the central government level, Darmin said 16 ministries and one agency had slashed 422 regulations comprising 232 rules related to licensing and 190 on other matters.
“Regulations related to licensing, including those in regional governments, are based on regulations at ministries and agencies that have been cut a lot,” Darmin said.
As for task-force establishment, Darmin acknowledged the difficulties, especially at regional level.
As of March 27, 33 provinces as well as 273 regencies and municipalities had already created their task forces. On Jan. 23, task-force establishment had been done by only 10 provinces, as well as 75 regencies and municipalities.
Currently, 92 regencies and municipalities have yet to establish their task forces.
Home Minister Tjahjo Kumolo said the government was formulating a set of measures for regencies and municipalities delaying their task-force establishment, ranging from warnings and advice, to administrative sanctions, which would affect their budgets and programs.
The government promises that the new licensing process system will be much more flexible.
Darmin said as long as investors stated they were committed to working on their building permit (IMB) and environmental impact analysis (Amdal), they could build their offices immediately after their detailed spatial plan (RDTR) was approved by the regional governments.
“When an investor comes to a one-stop integrated service [PTSP], he or she only has to bring a notarial act and the company will be approved immediately by the Law and Human Rights Ministry,” he said.
“[The investor] will also obtain company identification and tax numbers as well as a location permit as long as he or she is committed to getting the IMB and Amdal.”
However, Darmin said the government still had to amend some laws stipulating that the IMB could not be issued without an Amdal.
