JAKARTA \u2014 The government aims to implement risk-based business\nlicensing to ensure that permits submitted by business operators are\nbetter regulated.<\/p>\n
The Coordinating Ministry for Economic Affairs stated that the\ngovernment is currently revising Government Regulation (PP) Number 5 of\n2021 on business licensing, with supervision being one of the key areas\nof emphasis.<\/p>\n
\u201cAs a preview, the government is currently preparing the revision\ndraft and has already sought the President\u2019s approval,\u201d said Ichsan\nZulkarnaen, Assistant Deputy for Investment and Downstreaming at the\nCoordinating Ministry for Economic Affairs, at a Communication Forum in\nJakarta on Tuesday (27\/5).<\/p>\n
Ichsan revealed that the draft has been signed by all relevant\nministries and agencies and is awaiting further direction from President\nPrabowo Subianto.<\/p>\n
\u201cTrust must be proven, meaning it must be verified whether business\noperators have indeed complied with the requirements and obligations\nthat have been set,\u201d he said regarding the emphasis on supervision.<\/p>\n
He cited the tourism sector as an example, noting that tourism\noperators must observe the provisions established by the Ministry of\nTourism, such as maintaining cleanliness of public facilities at tourist\ndestinations and ensuring visitor safety.<\/p>\n
Emphasis on OSS<\/strong><\/p>\n As a sector involving many stakeholders, he urged relevant ministries\nand agencies to assist the Ministry of Tourism in implementing\nrisk-based business licensing.<\/p>\n \u201cThe government itself can conduct supervision without direct\ncomplaints being submitted through the Online Single Submission (OSS)\nchannel,\u201d he said.<\/p>\n The public and business operators can also file complaints through\nthe OSS channel prepared by the Ministry of Investment and\nDownstreaming\/BKPM if they discover companies committing violations.<\/p>\n Through this system, the government hopes to create a healthier, more\nsustainable and inclusive business ecosystem for all parties.<\/p>\n \u201cI invite all of us \u2014 regulators, business operators and civil\nsociety \u2014 to work together in strengthening risk-based business\nlicensing supervision as part of our effort to build this nation,\u201d he\nsaid.<\/p>\n Oil and Gas Licensing<\/strong><\/p>\n On the matter of licensing, National Energy Council (DEN) member\nAbadi Poernomo stated the need for immediate regulatory simplification\nin the oil and gas sector to ease business operations in the field.<\/p>\n Through regulatory easing, including licensing, the oil and gas\nindustry would benefit from greater ease of doing business, which is\nexpected to further support increased production and national energy\nsecurity.<\/p>\n \u201cAll licensing urgently needs to be simplified. For example, AMDAL\n(environmental impact analysis), which currently has no defined time\nlimit. The same applies to Location Permits, where the speed often\ndepends on the local regional head,\u201d he said in Jakarta on Sunday.<\/p>\n Abadi emphasised that regulatory simplification, including licensing,\ncould facilitate access to various oil and gas reserve discoveries by\nthe industry, including through PT Pertamina Hulu Energi (PHE) as the\nUpstream Sub-Holding of PT Pertamina (Persero), which has made numerous\nnew oil and gas reserve discoveries.<\/p>\n PHE has indeed made many discoveries, predominantly gas. In 2024, for\ninstance, the realisation of contingent 2C Recoverable oil and gas\nresource discoveries by Pertamina Group\u2019s Upstream Sub-Holding reached\n652 million barrels of oil equivalent (MMBOE), or 2C Inplace of 1.75\nbillion barrels of oil equivalent (BBOE), including reassessment\nevaluation of existing structures.<\/p>",
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