Indonesian Political, Business & Finance News

Deputy Investment Minister Introduces Fictive Positive Principle for Business Licensing

| Source: GALERT
JAKARTA. To advance the business world and provide legal certainty, Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has introduced the Fictive Positive (FikPos) principle in the licensing sector. This principle has been implemented in the risk-based Online Single Submission (OSS) business licensing system since early June.

FikPos is a principle in the business licensing system which stipulates that if a licensing application that has met all requirements does not receive a response or decision from the relevant authority within a specified timeframe in accordance with the service level agreement (SLA), the application is automatically deemed approved and legally valid. The fictive positive principle has been enacted as a bureaucratic reform breakthrough to improve the efficiency and transparency of licensing services.

Todotua conveyed this before regional heads and deputy regional heads whilst attending the Regional Leadership Orientation Wave II at the Institute of Domestic Governance (IPDN) campus in Jatinangor, Sumedang Regency, West Java, on Wednesday (25/6) last week.

In a press release, Todotua emphasised the importance of the role of regional heads and their apparatus in driving investment to boost the economy. The retreat served as an important moment for direct interaction with regional governments regarding investment development.

"Regional governments hold a key role in supporting investment growth, particularly through the One-Stop Investment and Integrated Services Agency (DPMPTSP) which is tasked with handling investment," said Todotua, in a press release received by KONTAN on Sunday (29/6).

Todotua added that the forum was highly anticipated as it provided an opportunity for face-to-face engagement. He said his ministry is one of the ministries that will interact extensively with regional leadership functions at the provincial, regency and city levels. He expressed hope for strong collaboration between the central government and regional governments in handling investment.

The Ministry of Investment and Downstreaming/BKPM has also opened opportunities for regional governments wishing to consult on investment matters.

"All licensing is managed on a single OSS platform, and the control rests with us. This is the right moment because we also want coordination between central and regional government to move quickly," he affirmed.
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