Jakarta. The Job Creation Law Task Force recently gathered regional government representatives to discuss the issues related to business licensing services. 

The task force’s secretary Arif Budimanta said that the meeting sought to find the solutions to the business licensing problems encountered on the field.

“So we can make improvements, including making changes to the government regulations so we can get the best regulations. And this will improve the implementation on the ground,” Arif said. 

Task force senior member Tina Talisa revealed how the Job Creation Law had given a major boost to the country’s investments. Indonesia attracted Rp 1,418 trillion in investments throughout 2023, and the country has raised the investment target to Rp 1,650 trillion for 2024. Tina attributed this achievement to the partnership between the regional government and the private sector regardless of their business size. Indonesia was also able to garner investments because the government had already streamlined the business licensing process.

“Before the Job Creation Law, we only issued 5,000 business registration numbers a day. But this has now reached 11,000 business registration numbers per day,” Tina said.

She then talked of the online single submission system with a risk-based approach (OSS RBA) that integrates all licensing processes across the archipelago. However, the system is still facing some issues, including overlapping regulations.

Rohili, a representative for the public works agency at Banten, said that the OSS RBA still needed some improvements from a user interface and user experience standpoint. Yogyakarta government’s representative Nuri revealed that there were still regulatory violations in the tourism sector. “For instance, a karaoke business is adjacent to schools or places of worship. There are also times when the license does not fit with what is happening on the ground,” Nuri said.

Jambi’s government official Dian called for an immediate solution to the issues related to the licensing verification. Likewise, East Java’s government representative Arief said that there were cases of business representatives not being honest when signing up for a business permit. 

All regional government representatives called for some changes to the 2021 government regulation on risk-based business licensing. In response, the central government will work on three things: regulations, systems, and governance, according to Tina. 

"In the future, there will be a synchronization between the regional and central governments to prevent loss of communication. This will help make a better-integrated system," Tina said.