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Indonesia to get new business license regime with omnibus bill
The government hopes to boost the country’s ECDB ranking to 53rd place on the World Bank’s list this year.
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Omnibus laws introduces the new “business licensing” mechanism issued by the central government, streamlined through the Investment Coordinating Board (BKPM). (JP/Ricky Yudhistira)
T
he government will introduce a new business licensing regime in the omnibus bill on job creation to boost competitiveness and bolster investment as Indonesia's ranking in the World Bank’s Ease of Doing Business (EODB) index stagnates at 73rd.
The draft omnibus bill obtained by The Jakarta Post introduces the new “business licensing” mechanism issued by the central government, streamlined through the Investment Coordinating Board (BKPM), according to the bill’s draft and Presidential Instruction (Inpres) No. 7/2019 on the acceleration of ease of doing business.
BKPM head Bahlil Lahadalia said on Monday that the board had started to handle all licensing issuance as per Jan. 31. The new system will cut licensing hurdles as issuance was previously spread across government institutions and regional administrations, causing uncertainty to both investors and businesses.
“This is meant to provide certainty: investors will start and finalize their investment through BKPM and this will prevent a ping pong [of investors] from one ministry to another,” Bahlil said during a discussion with European businesspeople in Jakarta on Monday.
Read also: Omnibus bill allows President to scrap bylaws, weakens regional administrations
Inpres No. 7/2019 not only grants the BKPM the authority to take over all business permits but also makes the agency the lead in evaluating and making recommendations on policies that are deemed as unfavorable for investors.
The government hopes to boost the country’s ECDB ranking to 53rd place on the World Bank’s list this year in a bid to attract more investment into the country, aiming to achieve 40th position in the next three to four years.
