Jakarta. Indonesia is banking on the Job Creation Law, among others, as its strategy to boost this year’s economic growth.

According to Arif Budimanta, the secretary of the law’s task force, Indonesia is seeking an economic growth of over 5 percent this year, but this would require structural reforms such as through the Job Creation Law.  

"The government's efforts to spur economic growth include accelerating the implementation of the Job Creation Law with all its derivative regulations," Arif was quoted as saying in a recent press statement.

“In the Job Creation Law, all permits are risk-based. This is a new, more systematic breakthrough. This risk concerns the environment, human safety and other social aspects," Arif said.

The highly necessary permits such as the building approval (BG), certificate of functional worthiness (SLF), and conformity of spatial utilization (KKPR) call for easier processes through digitalization. To this end, Indonesia is embracing what it calls the online single submission - risk-based approach (OSS-RBA). The system also calls for solid cooperation between governments and its users, according to Arif.

“Integrating a system calls for integration of rules. These regulations are not only at the ministry level, but the sub-national governments also issue regulations that should be in line with those of the central government,” Arif said.

Rahma Julianti, a director at the Spatial Planning Ministry, said that KPPR licensing has now become easier, even for micro and small enterprises with the OSS system. However, the KPPR licensing still faces some challenges, among others, some applicants still do not understand the KPPR licensing process. 

Other problems include discrepancies between the automatic KKPR resulting from the business actor's independent statement and the spatial plan and level of risk of their activities. The OSS system sometimes also encounters errors. Even so, the Spatial Planning Ministry has prepared a roadmap to resolve the issues.

"There are 4 strategies for accelerating KKPR services, namely accelerating the preparation of the spatial plans, building and making use of the national data center, improving the quality of the manpower for KKPR services, as well as the public outreach and education in the digital ecosystem of KKPR services," Rahma said.

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