Draft Revision of Business Licensing Regulations Agreed Upon by Multiple Ministries
JAKARTA — The government aims to implement risk-based business licensing to ensure that permits submitted by business operators are better regulated.
The Coordinating Ministry for Economic Affairs stated that the government is currently revising Government Regulation (PP) Number 5 of 2021 on business licensing, with supervision being one of the key areas of emphasis.
"As a preview, the government is currently preparing the revision draft and has already sought the President's approval," said Ichsan Zulkarnaen, Assistant Deputy for Investment and Downstreaming at the Coordinating Ministry for Economic Affairs, at a Communication Forum in Jakarta on Tuesday (27/5).
Ichsan revealed that the draft has been signed by all relevant ministries and agencies and is awaiting further direction from President Prabowo Subianto.
"Trust must be proven, meaning it must be verified whether business operators have indeed complied with the requirements and obligations that have been set," he said regarding the emphasis on supervision.
He cited the tourism sector as an example, noting that tourism operators must observe the provisions established by the Ministry of Tourism, such as maintaining cleanliness of public facilities at tourist destinations and ensuring visitor safety.
**Emphasis on OSS**
As a sector involving many stakeholders, he urged relevant ministries and agencies to assist the Ministry of Tourism in implementing risk-based business licensing.
"The government itself can conduct supervision without direct complaints being submitted through the Online Single Submission (OSS) channel," he said.
The public and business operators can also file complaints through the OSS channel prepared by the Ministry of Investment and Downstreaming/BKPM if they discover companies committing violations.
Through this system, the government hopes to create a healthier, more sustainable and inclusive business ecosystem for all parties.
"I invite all of us — regulators, business operators and civil society — to work together in strengthening risk-based business licensing supervision as part of our effort to build this nation," he said.
**Oil and Gas Licensing**
On the matter of licensing, National Energy Council (DEN) member Abadi Poernomo stated the need for immediate regulatory simplification in the oil and gas sector to ease business operations in the field.
Through regulatory easing, including licensing, the oil and gas industry would benefit from greater ease of doing business, which is expected to further support increased production and national energy security.
"All licensing urgently needs to be simplified. For example, AMDAL (environmental impact analysis), which currently has no defined time limit. The same applies to Location Permits, where the speed often depends on the local regional head," he said in Jakarta on Sunday.
Abadi emphasised that regulatory simplification, including licensing, could facilitate access to various oil and gas reserve discoveries by the industry, including through PT Pertamina Hulu Energi (PHE) as the Upstream Sub-Holding of PT Pertamina (Persero), which has made numerous new oil and gas reserve discoveries.
PHE has indeed made many discoveries, predominantly gas. In 2024, for instance, the realisation of contingent 2C Recoverable oil and gas resource discoveries by Pertamina Group's Upstream Sub-Holding reached 652 million barrels of oil equivalent (MMBOE), or 2C Inplace of 1.75 billion barrels of oil equivalent (BBOE), including reassessment evaluation of existing structures.
The Coordinating Ministry for Economic Affairs stated that the government is currently revising Government Regulation (PP) Number 5 of 2021 on business licensing, with supervision being one of the key areas of emphasis.
"As a preview, the government is currently preparing the revision draft and has already sought the President's approval," said Ichsan Zulkarnaen, Assistant Deputy for Investment and Downstreaming at the Coordinating Ministry for Economic Affairs, at a Communication Forum in Jakarta on Tuesday (27/5).
Ichsan revealed that the draft has been signed by all relevant ministries and agencies and is awaiting further direction from President Prabowo Subianto.
"Trust must be proven, meaning it must be verified whether business operators have indeed complied with the requirements and obligations that have been set," he said regarding the emphasis on supervision.
He cited the tourism sector as an example, noting that tourism operators must observe the provisions established by the Ministry of Tourism, such as maintaining cleanliness of public facilities at tourist destinations and ensuring visitor safety.
**Emphasis on OSS**
As a sector involving many stakeholders, he urged relevant ministries and agencies to assist the Ministry of Tourism in implementing risk-based business licensing.
"The government itself can conduct supervision without direct complaints being submitted through the Online Single Submission (OSS) channel," he said.
The public and business operators can also file complaints through the OSS channel prepared by the Ministry of Investment and Downstreaming/BKPM if they discover companies committing violations.
Through this system, the government hopes to create a healthier, more sustainable and inclusive business ecosystem for all parties.
"I invite all of us — regulators, business operators and civil society — to work together in strengthening risk-based business licensing supervision as part of our effort to build this nation," he said.
**Oil and Gas Licensing**
On the matter of licensing, National Energy Council (DEN) member Abadi Poernomo stated the need for immediate regulatory simplification in the oil and gas sector to ease business operations in the field.
Through regulatory easing, including licensing, the oil and gas industry would benefit from greater ease of doing business, which is expected to further support increased production and national energy security.
"All licensing urgently needs to be simplified. For example, AMDAL (environmental impact analysis), which currently has no defined time limit. The same applies to Location Permits, where the speed often depends on the local regional head," he said in Jakarta on Sunday.
Abadi emphasised that regulatory simplification, including licensing, could facilitate access to various oil and gas reserve discoveries by the industry, including through PT Pertamina Hulu Energi (PHE) as the Upstream Sub-Holding of PT Pertamina (Persero), which has made numerous new oil and gas reserve discoveries.
PHE has indeed made many discoveries, predominantly gas. In 2024, for instance, the realisation of contingent 2C Recoverable oil and gas resource discoveries by Pertamina Group's Upstream Sub-Holding reached 652 million barrels of oil equivalent (MMBOE), or 2C Inplace of 1.75 billion barrels of oil equivalent (BBOE), including reassessment evaluation of existing structures.