JAKARTA \u2014 The Ministry of Investment and Downstreaming\/Investment\nCoordinating Board (BKPM) has revealed that unrealised investment\nthroughout 2024 reached Rp2,000 trillion.<\/p>\n
Deputy Minister of Investment and Downstreaming\/Deputy Head of BKPM\nTodotua Pasaribu disclosed that the figure represents a serious concern\namid the government\u2019s efforts to accelerate investment in order to drive\neconomic growth.<\/p>\n
\u201cWhy is the unrealised investment figure so large? Because of issues\nsuch as licensing problems, an unconducive investment climate, various\noverlapping policies, and so forth,\u201d said Todotua during a Public\nConsultation on the Draft Licensing Regulation on Thursday (3 July\n2025).<\/p>\n
He stressed that the situation warrants serious reflection by the\ngovernment, particularly the Ministry of Investment and Downstreaming.\nMoreover, the government has set an ambitious target of more than\nRp13,000 trillion in realised investment through to 2029 to drive\neconomic growth towards 8 per cent.<\/p>\n
Todotua therefore emphasised the need for breakthroughs in licensing,\nparticularly through optimisation of the Online Single Submission (OSS)\nsystem and the application of fictive positive mechanisms in the\nlicensing system to provide legal certainty for investors.<\/p>\n
\u201cWe manage 1,700 types of permits, which intersect with 17 ministries\nand agencies. We are pushing for fictive positive schemes and the\nimplementation of service level agreements so that permits are\nautomatically issued if the deadline is met,\u201d he said.<\/p>\n
Todotua confirmed that the Ministry of Investment will continue to\npursue licensing reform, including revision of three main BKPM\nregulations, namely Minister of Investment Regulations No.\u00a03, 4, and 5\nof 2021. These three regulations will be consolidated into a single\nregulation in accordance with the provisions of Government Regulation\n(PP) No.\u00a028\/2025 on the Implementation of Risk-Based Business\nLicensing.<\/p>\n
Todotua also sought input from stakeholders regarding the draft of\nthe new regulation. \u201cWe cannot work alone. The government needs input\nfrom business actors, associations, and MSMEs. The target is for this\nregulatory refinement to become the foundation of risk-based licensing\nreform that is simpler, more accountable, and pro-investment,\u201d he\nsaid.<\/p>\n
The government has begun disseminating PP No.\u00a028\/2025 on the\nImplementation of Risk-Based Business Licensing, which was officially\nissued on 5 June 2025. This new regulation replaces PP 5\/2021 and marks\nan improvement to the risk-based business licensing system to be more\nmeasurable, digital, and integrated through the Online Single Submission\nRisk Based Approach (OSS-RBA).<\/p>\n
\u201cThis government regulation affirms the government\u2019s commitment to\nstrengthening the business licensing ecosystem that supports investment\ngrowth and provides legal certainty for business actors,\u201d said\nCoordinating Ministry for Economic Affairs Secretary Susiwijono\nMoegiarso during a dissemination event at the Coordinating Ministry for\nEconomic Affairs office on Monday (30 June 2025).<\/p>\n
Susiwijono explained that there are three main substantive\ndifferences between PP 28\/2025 and the previous regulation. First, the\nimplementation of service level agreements (SLAs). For the first time,\nevery stage in the business licensing process, from registration to\npermit issuance, will be given clear service time limits (SLAs).<\/p>\n
\u201cBusiness actors have long complained about uncertainty over\ntimeframes. Under PP 28, for example, the process for approval of\nspatial utilisation conformity at the Ministry of Agrarian Affairs and\nSpatial Planning\/National Land Agency is set at a maximum of 25 working\ndays without revision, or 40 days if amendments are required,\u201d he\nexplained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/unrealised-investment-reaches-rp2-000-trillion-in-2024-amid-licensing-bottlenecks-1771251834", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }