- Ahmad Redi, a law lecturer from the University of Tarumanegara, recently asserted that the implementation of the new Online Single Submission (“OSS”) system did not eliminate the authority of regional governments to process and issue sectoral investment-related licenses.
- Mr. Redi went on to explain that Location Permits are still to be administered by regional governments, as mandated by Law No. 23 of 2014 on Regional Government, in spite of the fact that said permits should only be issued after the relevant Commercial/Operational Licenses have already been issued through the OSS system beforehand.
- Mr. Redi also argued that, according to Articles 18 and 19 of Regulation of the Government No. 24 of 2018 (“OSS Regulation”), the issuance of any licenses which are administered by regional governments (e.g., governors or regents/mayors) should be undertaken by the OSS Agency on behalf of the relevant regional officials. As a result, investment-licensing procedures should be completely integrated into the OSS system.
- Mr. Redi also emphasized that the OSS licensing regime has adopted a post-commitment mechanism, meaning that Commercial/Operational Licenses can be issued prior to the fulfillment of license prerequisites.
- For more on this story, see Hukumonline: “OSS Tak Memangkas Wewenang Daerah? Begini Penjelasannya”.
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