Government Prepares Major Overhaul of Investment Regulations to Strengthen OSS System
Jakarta — The government is preparing a major overhaul of investment regulations to create a more conducive business climate and attract global investor interest. Three key regulations issued by the Investment Coordinating Board (BKPM) will be replaced, with a focus on strengthening the Online Single Submission (OSS) system.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that the updates are a response to challenges in investment realisation and obstacles long faced by business operators.
"The old regulations need to be refined to be more adaptive. The objective is clear: to accelerate licensing, strengthen OSS, and provide concrete legal certainty," said Todotua during a public consultation held at the Ministry of Investment office in Jakarta on Thursday (3 July).
The three BKPM regulations set for revision are: BKPM Regulation No. 3/2021 on the Electronically Integrated Risk-Based Business Licensing System; BKPM Regulation No. 4/2021 on Guidelines and Procedures for Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5/2021 on Guidelines and Procedures for Supervision of Risk-Based Business Licensing.
The government is targeting Rp13,000 trillion in accumulated investment by 2029. More progressive and efficient regulations are therefore seen as key to achieving this target.
Todotua emphasised the importance of input from various parties, including ministries and agencies, regional governments, associations, MSME operators, and investors.
"This public consultation is not a formality but a strategic step to absorb genuine input. The aim is to ensure the new regulations truly serve the national interest," he stressed.
One of the key breakthroughs is the integration of OSS with the financial industry sector, including banking, insurance, and non-bank financial institutions. Todotua revealed that data from these sectors had never previously been included in national investment realisation figures.
"Until now, financial industry licensing has not been consolidated within OSS, despite the investment value being very substantial," said Todotua.
He also mentioned having met directly with the Chairman of the Financial Services Authority (OJK) and receiving a positive response. Within the next one to two weeks, an agreement is expected to incorporate the financial sector into the OSS system.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that the updates are a response to challenges in investment realisation and obstacles long faced by business operators.
"The old regulations need to be refined to be more adaptive. The objective is clear: to accelerate licensing, strengthen OSS, and provide concrete legal certainty," said Todotua during a public consultation held at the Ministry of Investment office in Jakarta on Thursday (3 July).
The three BKPM regulations set for revision are: BKPM Regulation No. 3/2021 on the Electronically Integrated Risk-Based Business Licensing System; BKPM Regulation No. 4/2021 on Guidelines and Procedures for Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5/2021 on Guidelines and Procedures for Supervision of Risk-Based Business Licensing.
The government is targeting Rp13,000 trillion in accumulated investment by 2029. More progressive and efficient regulations are therefore seen as key to achieving this target.
Todotua emphasised the importance of input from various parties, including ministries and agencies, regional governments, associations, MSME operators, and investors.
"This public consultation is not a formality but a strategic step to absorb genuine input. The aim is to ensure the new regulations truly serve the national interest," he stressed.
One of the key breakthroughs is the integration of OSS with the financial industry sector, including banking, insurance, and non-bank financial institutions. Todotua revealed that data from these sectors had never previously been included in national investment realisation figures.
"Until now, financial industry licensing has not been consolidated within OSS, despite the investment value being very substantial," said Todotua.
He also mentioned having met directly with the Chairman of the Financial Services Authority (OJK) and receiving a positive response. Within the next one to two weeks, an agreement is expected to incorporate the financial sector into the OSS system.