Head of Indonesian Investment Coordinating Board (BKPM), Bahlil Lahadalia, in Jakarta on Monday said, all business licensing had been delegated to BKPM beginning Monday (3/2). Therefore, representatives from 25 ministries and institutions began working at BKPM for the one-stop licensing service.
Bahlil Lahadalia said that was in line with Presidential Instruction No. 7 2019, that mandated BKPM to evaluate all licensing processes. Then, it assigned the ministry to delegate some licensing authorities to the Investment Coordinating Board.
Bahlil said the process forall permit issuance is carried out at BKPM,except those permits for upstream oil and gas, which will still be processed at the authority of Energy and Mineral Resources Ministry. The downstream oil and gas sector such as transportation, gas station, and mining permit (IUP) are at BKPM.
Although Bahlil Lahadalia could not specify the time needed to finish the licensing, he assured there will be acceleration. License processing durations depend on model or type of business permit, such as environmental impact analysis and mining business permits that require technical assessment which will not be finished in one day.
Bahlil explained, since tax incentive giving to investors moved to BKPM, businesspeople who invest and fulfill regulations will receive incentives, namely they do not need to visit ministry offices. Therefore, licensing processes can be more efficient in terms of time and cost, including their certainty.
Meanwhile, business permits under regional governments, namely in provinces, regencies, and cities, will be directly carried out by One-Stop Integrated Service and Investment Agency. The Home Affairs Ministry issued letters to governors, regents, and city mayors to ensure permits are only being processed at One-Stop Integrated Service and Investment Agency.
Bahlil Lahadalia said, currently they are formulating the Norm, Standard, Procedure, and Criteria (NSPK). Previously, after receiving a business registration number (NIB), businesspeople must receive approval from all related ministries and bodies, so those related ministries and institutions will put a representative at the Investment Coordinating Board office. This is because businesspeople require three things, namely speed, certainty, and efficiency.