Jakarta \u2014 Deputy Minister of Investment and Downstream\nIndustries\/Deputy Head of BKPM Todotua Pasaribu has highlighted the\ncomplexity of investment licensing in Indonesia, describing the permit\nprocess as a stumbling block for investment realisation. He has\ntherefore proposed to the Coordinating Ministry for Economic Affairs\nthat investment permits be simplified, specifically for investments\nalready confirmed to proceed in industrial estates, Special Economic\nZones (KEK) and free trade zones.<\/p>\n
\u201cAs long as the investment is entering a designated zone \u2014 whether an\nindustrial estate, special economic zone or free trade zone \u2014 if the\ninvestor is ready to come in, we issue the permit immediately. But the\nbasic requirements we can post-audit,\u201d he said during a Public\nConsultation on the Draft Regulation of the Minister of Investment and\nDownstream Industries\/Head of BKPM in Jakarta on Thursday (3 July\n2025).<\/p>\n
According to Pasaribu, the government must pursue breakthroughs to\ndeliver faster licensing services. Licensing issues are frequently cited\nby business operators as a major obstacle to investment. He explained\nthat if permits are only issued one to three years after an investor\napplies, this creates serious problems \u2014 particularly as business cycles\nmay shift in the interim.<\/p>\n
\u201cFor investment actors, the business cycle they wanted to invest in\nhas already changed by the time the permit comes through. If licensing\ncan only be executed one, two or three years after application, that is\na problem. Going forward, this is something we truly must reform,\u201d\nPasaribu elaborated.<\/p>\n
On this basis, his ministry has proposed that investment permits for\nindustrial zones be issued directly by the Ministry of Investment and\nDownstream Industries\/BKPM, with compliance checks conducted through\npost-audits.<\/p>\n
\u201cWe need to create a breakthrough, and we at the Ministry of\nInvestment \u2014 to start with, let us do this in designated zones. As long\nas it is within a zone and the investor is ready, we at the Ministry of\nInvestment will issue the permit. The rest we post-audit. Because once\nsomeone has invested, they are not going to flee \u2014 they will not neglect\ntheir obligations,\u201d he explained.<\/p>\n
One of the proposed mechanisms is a deemed-approval scheme (fiktif\npositif). Under this approach, a business permit would be automatically\ngranted if the relevant technical ministry fails to issue it within the\nagreed timeframe. Pasaribu noted that his ministry handles 1,700 types\nof permits involving approximately 17 ministries and government\nagencies.<\/p>\n
\u201cThere is a concept called deemed approval \u2014 this is about providing\ncertainty. Our ministry, as I mentioned, handles 1,700 types of permits\nlinked to roughly 17 ministries and agencies,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/deputy-investment-minister-proposes-instant-permits-for-industrial-zones-to-unblock-investment-1771251878", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }