Government to Overhaul Investment Licensing Regulations to Boost Investment Climate
Jakarta - The government is set to issue new regulations governing investment licensing, replacing the current rules in a bid to simplify the permit process and boost investment figures in the country.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said three regulations would be refined. The first is BKPM Regulation Number 3 of 2021 concerning the Electronically Integrated Risk-Based Business Licensing System. The second is BKPM Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities. The third is BKPM Regulation Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"Today's public consultation is being held with a strategic objective — to absorb constructive input from stakeholders including ministries, agencies, regional governments, business associations, MSME operators and investors regarding the proposed amendments to BKPM Regulations 3, 4 and 5 of 2021," he said during the consultation event at his office in Jakarta on Thursday (3 July 2025).
The move is expected to create a more conducive and investment-friendly business climate. Through to 2029, the government is targeting total investment inflows of up to Rp 13,000 trillion.
Through the refinement of these three regulations, the Ministry of Investment and Downstreaming/BKPM will strengthen the Online Single Submission (OSS) system for investment licensing. Legal certainty and procedural simplification will also be incorporated.
"We hope this will become fresh energy for the creation of progressive regulations that serve the national interest and foster a better investment climate," Todotua said.
On the same occasion, he touched on strengthening the OSS system in relation to the financial industry. According to Todotua, his ministry had already met with the Financial Services Authority (OJK) to consolidate OSS within the sector.
"Until now, the financial industry — both banking, insurance and others, both banking and non-banking — their data has never been visible to us. It has never entered into the reality of investment. And indeed the licensing processes there have not either," he said.
"The response from the OJK chairman was very positive, and hopefully our Ministry will follow up within the next one to two weeks. We should be able to reach an agreement with the financial industry and OJK to bring the financial industry into the OSS system," Todotua concluded.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said three regulations would be refined. The first is BKPM Regulation Number 3 of 2021 concerning the Electronically Integrated Risk-Based Business Licensing System. The second is BKPM Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities. The third is BKPM Regulation Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"Today's public consultation is being held with a strategic objective — to absorb constructive input from stakeholders including ministries, agencies, regional governments, business associations, MSME operators and investors regarding the proposed amendments to BKPM Regulations 3, 4 and 5 of 2021," he said during the consultation event at his office in Jakarta on Thursday (3 July 2025).
The move is expected to create a more conducive and investment-friendly business climate. Through to 2029, the government is targeting total investment inflows of up to Rp 13,000 trillion.
Through the refinement of these three regulations, the Ministry of Investment and Downstreaming/BKPM will strengthen the Online Single Submission (OSS) system for investment licensing. Legal certainty and procedural simplification will also be incorporated.
"We hope this will become fresh energy for the creation of progressive regulations that serve the national interest and foster a better investment climate," Todotua said.
On the same occasion, he touched on strengthening the OSS system in relation to the financial industry. According to Todotua, his ministry had already met with the Financial Services Authority (OJK) to consolidate OSS within the sector.
"Until now, the financial industry — both banking, insurance and others, both banking and non-banking — their data has never been visible to us. It has never entered into the reality of investment. And indeed the licensing processes there have not either," he said.
"The response from the OJK chairman was very positive, and hopefully our Ministry will follow up within the next one to two weeks. We should be able to reach an agreement with the financial industry and OJK to bring the financial industry into the OSS system," Todotua concluded.