BKPM Strengthens Service Level Agreement to Accelerate Investment
Jakarta – The Ministry of Investment and Downstream Industry has emphasised the strengthening of service level agreements (SLAs) in licensing reform, a measure considered critical for accelerating realisation of national investment.
The strengthening of SLAs is being carried out through adjustments to Government Regulation No. 28 of 2025. Additionally, optimisation of the Online Single Submission (OSS) system continues to be pursued.
Deputy Minister of Investment and Downstream Industry, Todotua Pasaribu, stated that certainty of service timeframes is a primary factor. According to him, the business sector requires measurable and transparent licensing processes.
He explained that SLAs ensure permits are issued within agreed timeframes. Technical ministries remain obligated to meet requirements through post-audit mechanisms.
“Licensing services are among those making a significant contribution to investment realisation itself. Besides construction processes, land, and the business itself, licensing is the most fundamental aspect,” said Todotua in Jakarta on Thursday, 26 February 2026.
According to him, this approach strengthens the principle of legal certainty for investors. Service certainty is considered capable of reducing obstacles at the initial investment stage.
BKPM also applies the principle of fictitious positive approval in its service scheme. This mechanism allows permits to be issued when timeframes are exceeded.
Todotua believes that parallel service delivery models will shorten investment cycles. Previously, initial licensing processes were often a key bottleneck.
“We are attempting to modify and transform this to run in parallel, so that our investment cycle can be shortened. With a shorter investment cycle, investment realisation can also be achieved faster,” he said.
He added that the number of business actors registered through the Business Identification Number (NIB) has reached 15.4 million. With stronger SLAs, growth in new business actors is expected to increase.
The government is targeting investment realisation over five years to reach IDR 13,000 trillion. Strengthened SLAs are expected to accelerate this target.
BKPM ensures that regulatory improvements and OSS continue to be socialised. Service consistency is key to maintaining investor confidence.
Meanwhile, Deputy for Investment Climate Development at the Ministry of Investment and Downstream Industry, Riyatno, emphasised that SLAs have been detailed in regulations. These provisions are contained in the annex to Government Regulation No. 28 of 2025.
According to Riyatno, all types of permits now have clear timeframes. If verification is not conducted, the OSS system automatically issues the permit.
“In the annex to Government Regulation 28 of 2025, all permits now have clear service level agreements. If ministries or agencies do not conduct verification, the OSS system can automatically issue permits,” said Riyatno.
Riyatno added that simplification of processes has also been carried out comprehensively. Licensing stages are now arranged sequentially and more structured.
He ensured that this reform supports the target of national economic growth. Service certainty is considered the foundation of a favourable investment climate.
BKPM will continue to conduct socialisation and refinement of the OSS system. Consistent application of SLAs is expected to maintain investor confidence.