Illustrative image (Photo: Jakarta Post) Jakarta (VNA) – Indonesia will introduce a new business licensing regime inthe omnibus bill on job creation to boost competitiveness and bolsterinvestment, as the country'sranking in the World Bank’s Ease of Doing Business index stagnates at 73rd.
Head of theIndonesian Investment Coordination Board (BKPM) Bahlil Lahadalia said on February17 that the board had started to handle all licensing issuance from January 31.The new system will cut licensing hurdles as issuance was previously spreadacross government institutions and regional administrations, causinguncertainty to both investors and businesses.
This is meantto provide certainty as investors will start and finalise their investment through the BKPM and this will prevent a ping pong ofinvestors from one ministry to another, Bahlil said.
PresidentialInstruction (Inpres) No. 7/2019 grants the BKPM the authority to take over allbusiness permits and makes the agency the lead in evaluating and making recommendationson policies deemed as unfavourable for investors.
The omnibusbill on job creation simplifies business licenses across almost all businesssectors, including maritime and fisheries, agriculture, forestry, energy andmineral resources, electricity and industry.
Trade,standardisation includinghalal certification, infrastructure and public housing, transportation, health,drugs and food, education and culture, tourism, postal, telecommunications andbroadcasting, security and defense are also covered.
The billamends and revokes many articles in the prevailing laws related to theaforementioned business sectors.
Bahlil said tocut red tape that has hampered investment in the country, all licensingprocesses issued by regional administrations will be handed over to the CapitalInvestment and One-Stop Integrated Services Agency (DPMPTSP). The agency, whichoperates under the BKPM, will serve to avoid regional intervention, he added.
The BKPM havealso set up an investment alert task force involving its officials, theNational Police and the Attorney General’s Office to oversee and protectinvestments from being disrupted in regions.
The BKPM willalso have the authority to issue tax holidays and tax allowances except forseveral business types as agreed with the Finance Ministry, said Bahlil.
The omnibusbill also includes changes to the negative investment list as all businesssectors will be open to direct investment, except those declared prohibitedfrom such activity or those that can only be handled by the government./.
Head of theIndonesian Investment Coordination Board (BKPM) Bahlil Lahadalia said on February17 that the board had started to handle all licensing issuance from January 31.The new system will cut licensing hurdles as issuance was previously spreadacross government institutions and regional administrations, causinguncertainty to both investors and businesses.
This is meantto provide certainty as investors will start and finalise their investment through the BKPM and this will prevent a ping pong ofinvestors from one ministry to another, Bahlil said.
PresidentialInstruction (Inpres) No. 7/2019 grants the BKPM the authority to take over allbusiness permits and makes the agency the lead in evaluating and making recommendationson policies deemed as unfavourable for investors.
The omnibusbill on job creation simplifies business licenses across almost all businesssectors, including maritime and fisheries, agriculture, forestry, energy andmineral resources, electricity and industry.
Trade,standardisation includinghalal certification, infrastructure and public housing, transportation, health,drugs and food, education and culture, tourism, postal, telecommunications andbroadcasting, security and defense are also covered.
The billamends and revokes many articles in the prevailing laws related to theaforementioned business sectors.
Bahlil said tocut red tape that has hampered investment in the country, all licensingprocesses issued by regional administrations will be handed over to the CapitalInvestment and One-Stop Integrated Services Agency (DPMPTSP). The agency, whichoperates under the BKPM, will serve to avoid regional intervention, he added.
The BKPM havealso set up an investment alert task force involving its officials, theNational Police and the Attorney General’s Office to oversee and protectinvestments from being disrupted in regions.
The BKPM willalso have the authority to issue tax holidays and tax allowances except forseveral business types as agreed with the Finance Ministry, said Bahlil.
The omnibusbill also includes changes to the negative investment list as all businesssectors will be open to direct investment, except those declared prohibitedfrom such activity or those that can only be handled by the government./.
VNA
