Golkar on Complicated Licensing in Indonesia: Disharmony Between Central and Regional Regulations

President Prabowo Subianto is annoyed about the complexity of the licensing system in Indonesia. Member of the House of Representatives Commission VI, Sarmuji, revealed the reasons behind the complicated process of obtaining permits in Indonesia.

“One of the factors is indeed the disharmony or overlap of regulations both at the central and regional levels. It even seems like there is a scramble for authority. There is a weakness in coordination both vertically and horizontally,” Sarmuji told reporters on Thursday (14/5/2026).

The Secretary-General of the Golkar Party expressed gratitude if Prabowo emphasised the issue of complicated permitting in Indonesia. According to him, the problem has been ongoing for a long time.

“(The issue of complicated permitting) has been sought for solutions. But for some reason, this problem remains unresolved,” he added.

There are several things, said Sarmuji, that can be simplified regarding the permitting process. First, regulations must be synchronised.

“All regulations that hinder investment permits must be reviewed. There used to be a term deregulation,” said Sarmuji.

“The second thing is that coordination between vertical and horizontal agencies must be strengthened,” he continued.

Prabowo Highlights Complicated Permitting in Indonesia

Previously, Prabowo mentioned the complexity of Indonesia’s licensing system. Prabowo said that bureaucratic issues impact the shift of investment opportunities away from foreign investors.

This was stated by Prabowo during his directions at the handover of funds from the proceeds of the Forest Area Regulation Task Force seizures worth Rp 10.2 trillion at the Attorney General’s Office. Prabowo asked all ministries and agencies to facilitate the licensing system.

“All officials from all ministries and agencies should find ways to improve the system. Reduce inefficiencies, facilitate permitting, do not complicate it,” said Prabowo at the Attorney General’s building in Jakarta on Wednesday (13/5).

Prabowo compared the duration of permitting in Indonesia and other countries. He said that other countries only need two weeks to process business and investment permits. This figure is far different from the time required in Indonesia.

“Businesspeople also complain that they want to work, want to invest, but sometimes wait for permits for one year, two years. Whereas in other countries, two weeks,” explained Prabowo.

“We must refer to neighbouring countries; if they can issue permits in two weeks, why do we take two years,” added Prabowo.