BKPM Can Issue Permits if Ministries Exceed Time Limit
The Ministry of Investment and Downstreaming/BKPM can issue business permits if the relevant ministries or agencies fail to provide a decision within the stipulated time limit. This scheme is being implemented to reduce the uncertainty that has long been a complaint among investors.
Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani stated that the service time limit is regulated by Government Regulation Number 28. This provision applies to the licensing process involving 18 ministries and agencies.
“If within 10 days they do not get back to us, meaning they neither accept nor reject, I can automatically issue the permit as the Ministry of Investment,” Rosan said at the Presidential Palace complex in Jakarta on Thursday, 16 July.
According to Rosan, before this rule came into effect, a service level agreement on completion times had already been agreed upon. However, there was no certainty when the process exceeded the deadline. Permits that were supposed to be completed in 10 days could drag on to 15 days, one month, or even three months.
“Previously, the agreement was 10 days, but it could become 15 days, 20 days, a month, or three months. There was no limit,” he said.
Rosan explained that time certainty is one of the main considerations for investors. Direct investment differs from capital market investment because the capital invested cannot be withdrawn quickly. Investors, he noted, calculate risks, potential profits, and economic, political, and social stability before committing capital for the long term.
The government is also integrating the Online Single Submission (OSS) system with 18 ministries and agencies. This process has increased the system’s load because data exchange is conducted electronically. BKPM plans to strengthen OSS using blockchain technology and artificial intelligence (AI). The technology is intended to make the licensing process faster, more certain, and easier to monitor.
Rosan said these improvements have received a positive response from business associations as well as domestic and foreign investors. They require certainty regarding the duration of the process and the time when permits are issued. “If they apply for permit A and the time is 10 days, then the permit is issued in 10 days. If it is 15 days, then 15 days,” he stated.