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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, RED
The government is planning to revoke the requirement to secure principle licenses, business-location permits (izin tempat usaha), and nuisance permits for small- to medium-scale enterprises (SMEs). According to Pramono Anung, the Secretary of the Cabinet, this move follows President Joko Widodo’s announcement that the existing regulatory framework should be immediately harmonized, as it is widely perceived to be hampering both SMEs and large-scale enterprises which are looking to secure licenses.
“Therefore, a request to repeal several regulations has been sent to Tjahyo Kumolo, the Minister of Domestic Affairs, so that the ministry can coordinate with the other relevant ministers with regard to revoking these regulations. Licenses set for revocation include the principle license, the business-location permit, and the nuisance permit for SMEs,” asserted Mr. Anung on the Secretariat of the Cabinet’s official website on Tuesday, 15 March 2016.
Meanwhile, the government is still deliberating whether the location permit (izin lokasi) and environment-impact analysis (AMDAL) permit should also be revoked.
“We [the government] will deliberate further as to whether these two permits are ultimately necessary or not. Generally speaking, there is no need to secure an AMDAL permit in regions or areas which have already undertaken an AMDAL,” asserted Mr. Anung.
According to Mr. Anung, the results of the deliberations will be incorporated into a new regulation which should be fully formulated by next week. Upon completion of the new regulation, the Coordinating Minister for Economic Affairs will make an official announcement in a plenary meeting (rapat paripurna), which will be attended by first-echelon officials from all of the relevant ministries and government institutions. This plenary meeting will instruct all first-echelon attendees to fully implement the new regulation. Moreover, President Widodo has also ordered Minister Kumolo to repeal a number of regional-level regulations (peraturan daerah - Perda) which relate to the three licenses described above. Minister Kumolo must report to President Widodo upon repeal of these Perdas, so that the fact can be disseminated accordingly.
Minister Kumolo has expressed his agreement with Mr. Anung’s statement, and has also asserted that his institution, the Ministry of Domestic Affairs, is ready to offer its full support for President Widodo’s policy as a major player in the realms of governmental affairs at the national level. This ultimately means that any regulations deemed to complicate investment, from presidential regulations all the way down to regulations issued by a village chiefs or heads of sub-districts, will be repealed. Moreover, licensing procedures which involve too much bureaucracy and red tape, or which harm the interests of middle- to low-income citizens, will also be repealed.
Commenting on this issue, Franky Sibarani, Head of the Investment Coordinating Board (BKPM), also asserted that in an effort to harmonize building permits (izin mendirikan bangunan), environmental licenses, and nuisance permits, several licenses would be revoked and then combined into a single license.
“This [President Widodo’s] new policy is not solely aimed at simplifying licensing procedures, as President Widodo is fed up with the actual number of licenses. After all, if there are too many licenses, then this correlates negatively with the ease of doing business and can have an impact upon Indonesia’s competitiveness as a whole,” asserted Mr. Sibarani.
According to Mr. Sibarani, the new license will incorporate the building permit, environmental license, and nuisance permit. Thus the securing of a single license will be the equivalent of securing all three of the current licenses. Mr. Sibarani firmly believes that this measure is necessary, as several of the current licensing procedures confusingly relate to several different laws. For example, the AMDAL permit relates to both the Environmental Law and Traffic Law. The mechanism by which these three licenses will be combined into a single license, however, is still to be deliberated and coordinated by the Coordinating Minister for Economic Affairs.
“It is inevitable that several licenses in several locations will be dropped altogether. The President’s desire to see an immediate simplification of the current licensing procedures is surely a positive step for the economy as a whole,” concluded Mr. Sibarani.
“Therefore, a request to repeal several regulations has been sent to Tjahyo Kumolo, the Minister of Domestic Affairs, so that the ministry can coordinate with the other relevant ministers with regard to revoking these regulations. Licenses set for revocation include the principle license, the business-location permit, and the nuisance permit for SMEs,” asserted Mr. Anung on the Secretariat of the Cabinet’s official website on Tuesday, 15 March 2016.
Meanwhile, the government is still deliberating whether the location permit (izin lokasi) and environment-impact analysis (AMDAL) permit should also be revoked.
“We [the government] will deliberate further as to whether these two permits are ultimately necessary or not. Generally speaking, there is no need to secure an AMDAL permit in regions or areas which have already undertaken an AMDAL,” asserted Mr. Anung.
According to Mr. Anung, the results of the deliberations will be incorporated into a new regulation which should be fully formulated by next week. Upon completion of the new regulation, the Coordinating Minister for Economic Affairs will make an official announcement in a plenary meeting (rapat paripurna), which will be attended by first-echelon officials from all of the relevant ministries and government institutions. This plenary meeting will instruct all first-echelon attendees to fully implement the new regulation. Moreover, President Widodo has also ordered Minister Kumolo to repeal a number of regional-level regulations (peraturan daerah - Perda) which relate to the three licenses described above. Minister Kumolo must report to President Widodo upon repeal of these Perdas, so that the fact can be disseminated accordingly.
Minister Kumolo has expressed his agreement with Mr. Anung’s statement, and has also asserted that his institution, the Ministry of Domestic Affairs, is ready to offer its full support for President Widodo’s policy as a major player in the realms of governmental affairs at the national level. This ultimately means that any regulations deemed to complicate investment, from presidential regulations all the way down to regulations issued by a village chiefs or heads of sub-districts, will be repealed. Moreover, licensing procedures which involve too much bureaucracy and red tape, or which harm the interests of middle- to low-income citizens, will also be repealed.
Commenting on this issue, Franky Sibarani, Head of the Investment Coordinating Board (BKPM), also asserted that in an effort to harmonize building permits (izin mendirikan bangunan), environmental licenses, and nuisance permits, several licenses would be revoked and then combined into a single license.
“This [President Widodo’s] new policy is not solely aimed at simplifying licensing procedures, as President Widodo is fed up with the actual number of licenses. After all, if there are too many licenses, then this correlates negatively with the ease of doing business and can have an impact upon Indonesia’s competitiveness as a whole,” asserted Mr. Sibarani.
According to Mr. Sibarani, the new license will incorporate the building permit, environmental license, and nuisance permit. Thus the securing of a single license will be the equivalent of securing all three of the current licenses. Mr. Sibarani firmly believes that this measure is necessary, as several of the current licensing procedures confusingly relate to several different laws. For example, the AMDAL permit relates to both the Environmental Law and Traffic Law. The mechanism by which these three licenses will be combined into a single license, however, is still to be deliberated and coordinated by the Coordinating Minister for Economic Affairs.
“It is inevitable that several licenses in several locations will be dropped altogether. The President’s desire to see an immediate simplification of the current licensing procedures is surely a positive step for the economy as a whole,” concluded Mr. Sibarani.
(rfs/sp)
Marcell Sihombing, RED
The government is planning to revoke the requirement to secure principle licenses, business-location permits (izin tempat usaha), and nuisance permits for small- to medium-scale enterprises (SMEs). According to Pramono Anung, the Secretary of the Cabinet, this move follows President Joko Widodo’s announcement that the existing regulatory framework should be immediately harmonized, as it is widely perceived to be hampering both SMEs and large-scale enterprises which are looking to secure licenses.
“Therefore, a request to repeal several regulations has been sent to Tjahyo Kumolo, the Minister of Domestic Affairs, so that the ministry can coordinate with the other relevant ministers with regard to revoking these regulations. Licenses set for revocation include the principle license, the business-location permit, and the nuisance permit for SMEs,” asserted Mr. Anung on the Secretariat of the Cabinet’s official website on Tuesday, 15 March 2016.
Meanwhile, the government is still deliberating whether the location permit (izin lokasi) and environment-impact analysis (AMDAL) permit should also be revoked.
“We [the government] will deliberate further as to whether these two permits are ultimately necessary or not. Generally speaking, there is no need to secure an AMDAL permit in regions or areas which have already undertaken an AMDAL,” asserted Mr. Anung.
According to Mr. Anung, the results of the deliberations will be incorporated into a new regulation which should be fully formulated by next week. Upon completion of the new regulation, the Coordinating Minister for Economic Affairs will make an official announcement in a plenary meeting (rapat paripurna), which will be attended by first-echelon officials from all of the relevant ministries and government institutions. This plenary meeting will instruct all first-echelon attendees to fully implement the new regulation. Moreover, President Widodo has also ordered Minister Kumolo to repeal a number of regional-level regulations (peraturan daerah - Perda) which relate to the three licenses described above. Minister Kumolo must report to President Widodo upon repeal of these Perdas, so that the fact can be disseminated accordingly.
Minister Kumolo has expressed his agreement with Mr. Anung’s statement, and has also asserted that his institution, the Ministry of Domestic Affairs, is ready to offer its full support for President Widodo’s policy as a major player in the realms of governmental affairs at the national level. This ultimately means that any regulations deemed to complicate investment, from presidential regulations all the way down to regulations issued by a village chiefs or heads of sub-districts, will be repealed. Moreover, licensing procedures which involve too much bureaucracy and red tape, or which harm the interests of middle- to low-income citizens, will also be repealed.
Commenting on this issue, Franky Sibarani, Head of the Investment Coordinating Board (BKPM), also asserted that in an effort to harmonize building permits (izin mendirikan bangunan), environmental licenses, and nuisance permits, several licenses would be revoked and then combined into a single license.
“This [President Widodo’s] new policy is not solely aimed at simplifying licensing procedures, as President Widodo is fed up with the actual number of licenses. After all, if there are too many licenses, then this correlates negatively with the ease of doing business and can have an impact upon Indonesia’s competitiveness as a whole,” asserted Mr. Sibarani.
According to Mr. Sibarani, the new license will incorporate the building permit, environmental license, and nuisance permit. Thus the securing of a single license will be the equivalent of securing all three of the current licenses. Mr. Sibarani firmly believes that this measure is necessary, as several of the current licensing procedures confusingly relate to several different laws. For example, the AMDAL permit relates to both the Environmental Law and Traffic Law. The mechanism by which these three licenses will be combined into a single license, however, is still to be deliberated and coordinated by the Coordinating Minister for Economic Affairs.
“It is inevitable that several licenses in several locations will be dropped altogether. The President’s desire to see an immediate simplification of the current licensing procedures is surely a positive step for the economy as a whole,” concluded Mr. Sibarani.
“Therefore, a request to repeal several regulations has been sent to Tjahyo Kumolo, the Minister of Domestic Affairs, so that the ministry can coordinate with the other relevant ministers with regard to revoking these regulations. Licenses set for revocation include the principle license, the business-location permit, and the nuisance permit for SMEs,” asserted Mr. Anung on the Secretariat of the Cabinet’s official website on Tuesday, 15 March 2016.
Meanwhile, the government is still deliberating whether the location permit (izin lokasi) and environment-impact analysis (AMDAL) permit should also be revoked.
“We [the government] will deliberate further as to whether these two permits are ultimately necessary or not. Generally speaking, there is no need to secure an AMDAL permit in regions or areas which have already undertaken an AMDAL,” asserted Mr. Anung.
According to Mr. Anung, the results of the deliberations will be incorporated into a new regulation which should be fully formulated by next week. Upon completion of the new regulation, the Coordinating Minister for Economic Affairs will make an official announcement in a plenary meeting (rapat paripurna), which will be attended by first-echelon officials from all of the relevant ministries and government institutions. This plenary meeting will instruct all first-echelon attendees to fully implement the new regulation. Moreover, President Widodo has also ordered Minister Kumolo to repeal a number of regional-level regulations (peraturan daerah - Perda) which relate to the three licenses described above. Minister Kumolo must report to President Widodo upon repeal of these Perdas, so that the fact can be disseminated accordingly.
Minister Kumolo has expressed his agreement with Mr. Anung’s statement, and has also asserted that his institution, the Ministry of Domestic Affairs, is ready to offer its full support for President Widodo’s policy as a major player in the realms of governmental affairs at the national level. This ultimately means that any regulations deemed to complicate investment, from presidential regulations all the way down to regulations issued by a village chiefs or heads of sub-districts, will be repealed. Moreover, licensing procedures which involve too much bureaucracy and red tape, or which harm the interests of middle- to low-income citizens, will also be repealed.
Commenting on this issue, Franky Sibarani, Head of the Investment Coordinating Board (BKPM), also asserted that in an effort to harmonize building permits (izin mendirikan bangunan), environmental licenses, and nuisance permits, several licenses would be revoked and then combined into a single license.
“This [President Widodo’s] new policy is not solely aimed at simplifying licensing procedures, as President Widodo is fed up with the actual number of licenses. After all, if there are too many licenses, then this correlates negatively with the ease of doing business and can have an impact upon Indonesia’s competitiveness as a whole,” asserted Mr. Sibarani.
According to Mr. Sibarani, the new license will incorporate the building permit, environmental license, and nuisance permit. Thus the securing of a single license will be the equivalent of securing all three of the current licenses. Mr. Sibarani firmly believes that this measure is necessary, as several of the current licensing procedures confusingly relate to several different laws. For example, the AMDAL permit relates to both the Environmental Law and Traffic Law. The mechanism by which these three licenses will be combined into a single license, however, is still to be deliberated and coordinated by the Coordinating Minister for Economic Affairs.
“It is inevitable that several licenses in several locations will be dropped altogether. The President’s desire to see an immediate simplification of the current licensing procedures is surely a positive step for the economy as a whole,” concluded Mr. Sibarani.
(rfs/sp)