Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami ANT, Christina Desy
In cooperation with other relevant ministers and institutions, the Indonesia Investment Coordinating Board (“BKPM”) is hoping to simplify or even eliminate irrelevant procedures currently needed to secure business permits. To this end, an overarching objective is the simplification and synchronization of and with prevailing laws and regulations.
Mahendra Siregar, Chairman of BKPM, said that licensing problems usually occur at the provincial or regency/city level. Several types of permits, according to him, can take hundreds of days to be obtained. As examples, he mentioned environmental licenses and location permits just to mention two. Mr. Siregar emphasized the urgency of formulating concrete actions to rectify the current situation.
“It is expected that this issue will be brought to the attention of the government, to gain instructions on the next steps to be taken,” said Mr. Siregar last Wednesday.
Mr. Siregar’s view is shared by Chairul Tanjung, Coordinating Minister for Economic Affairs. Mr. Tanjung said that the overlap of certain ministers and sectors has caused an ineffective permit process. Mr. Tanjung highlighted the licensing processes for the plantation, industrial, and transportation sector, which may take more than 700 days.
Mr. Tanjung hopes that the BKPM can cooperate with the related ministers to simplify the licensing procedures. He is encouraging the coordinating parties to place importance in establishing more effective processes within the next four to six months.
Protection for Micro Businesses
In line with such concerns, Mr. Tanjung informed of the government’s intention to enact a regulation for facilitating permits for micro businesses.
“There will be a Presidential Decree to give protection and legal certainty for micro businesses which will be issued immediately,” said Mr. Tanjung.
After the decree is issued, the Minister of Interior Affairs will invite and meet with governors, regents, and mayors from all over Indonesia to explain the provisions to them.
Once the new decree is issued, micro businesses should have easier access to financial services, such as opening bank accounts and obtaining loans. Furthermore, it will provide facilities for micro businesses such as business assistance from regional governments.
“All of those facilities can be enjoyed with a permit issued by the district head with the only requirement their electronic identity cards [e-KTP],” Mr. Tanjung stated.
Mr. Tanjung also assured that the process will be free of charge, as the expenses will be borne by the State Budget or regional budgets. Additionally, there will also be no levies charged to micro businesses that have obtained the business permit.
A similar process and requirements will also be applied to small and medium business at the regency level with one additional requirement which is a Taxpayer Identification Number (NPWP). The overall aim is to ease tax payments.
(hot/kc)
ANT, Christina Desy
In cooperation with other relevant ministers and institutions, the Indonesia Investment Coordinating Board (“BKPM”) is hoping to simplify or even eliminate irrelevant procedures currently needed to secure business permits. To this end, an overarching objective is the simplification and synchronization of and with prevailing laws and regulations.
Mahendra Siregar, Chairman of BKPM, said that licensing problems usually occur at the provincial or regency/city level. Several types of permits, according to him, can take hundreds of days to be obtained. As examples, he mentioned environmental licenses and location permits just to mention two. Mr. Siregar emphasized the urgency of formulating concrete actions to rectify the current situation.
“It is expected that this issue will be brought to the attention of the government, to gain instructions on the next steps to be taken,” said Mr. Siregar last Wednesday.
Mr. Siregar’s view is shared by Chairul Tanjung, Coordinating Minister for Economic Affairs. Mr. Tanjung said that the overlap of certain ministers and sectors has caused an ineffective permit process. Mr. Tanjung highlighted the licensing processes for the plantation, industrial, and transportation sector, which may take more than 700 days.
Mr. Tanjung hopes that the BKPM can cooperate with the related ministers to simplify the licensing procedures. He is encouraging the coordinating parties to place importance in establishing more effective processes within the next four to six months.
Protection for Micro Businesses
In line with such concerns, Mr. Tanjung informed of the government’s intention to enact a regulation for facilitating permits for micro businesses.
“There will be a Presidential Decree to give protection and legal certainty for micro businesses which will be issued immediately,” said Mr. Tanjung.
After the decree is issued, the Minister of Interior Affairs will invite and meet with governors, regents, and mayors from all over Indonesia to explain the provisions to them.
Once the new decree is issued, micro businesses should have easier access to financial services, such as opening bank accounts and obtaining loans. Furthermore, it will provide facilities for micro businesses such as business assistance from regional governments.
“All of those facilities can be enjoyed with a permit issued by the district head with the only requirement their electronic identity cards [e-KTP],” Mr. Tanjung stated.
Mr. Tanjung also assured that the process will be free of charge, as the expenses will be borne by the State Budget or regional budgets. Additionally, there will also be no levies charged to micro businesses that have obtained the business permit.
A similar process and requirements will also be applied to small and medium business at the regency level with one additional requirement which is a Taxpayer Identification Number (NPWP). The overall aim is to ease tax payments.
(hot/kc)