Investment Ministry Begins Drafting Amendments to BKPM Regulations to Improve Business Climate
Jakarta (ANTARA) - The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has begun drafting amendments to BKPM Regulations Numbers 3, 4 and 5 of 2021 in order to build a conducive business climate and attract investment.
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu said the refinement of these three regulations would serve as the foundation for risk-based corporate licensing reform through the simplification of procedures, strengthening of the Online Single Submission (OSS) system, and enhancement of legal certainty.
"Today's public consultation is being held with the strategic objective of absorbing constructive input from stakeholders, including ministries and institutions, regional governments, business associations, MSME operators and investors, regarding the Draft Amendments to BKPM Regulations Numbers 3, 4 and 5 of 2021," said Todotua after opening the public consultation at the BKPM office in Jakarta on Thursday.
Todotua stated that the revision of the three regulations needed to be carried out in order to accelerate, simplify and provide certainty in business licensing. He noted that input from various stakeholders was urgently needed to refine existing policies.
"Naturally, there is a concept that our Ministry has already prepared," he said.
The refinement of BKPM Regulations Numbers 3, 4 and 5 also aims to achieve the target of 8 per cent economic growth.
He noted that BKPM had found that unrealised investment had reached Rp1,500 trillion, caused by licensing issues. The government is therefore undertaking a breakthrough to reform convoluted bureaucracy.
"Issues such as these — licensing, an unconducive investment climate, overlapping policies and so forth — must indeed be noted and reflected upon collectively," he added.
The refinement of BKPM Regulations 3/4/5 of 2021 is a follow-up to Government Regulation (PP) Number 28 of 2025 on the Implementation of Risk-Based Business Licensing. The three regulations relate to the OSS System, Licensing Services and Supervision, which are now integrated through PP 28/2025.
Previously, the government had issued PP 28/2025 to create an ecosystem that facilitates business licensing. There are three key points that represent important breakthroughs in PP 28 of 2025.
First, certainty of Service Level Agreements (SLA) in the business licensing issuance process. This stipulates deadlines at every stage of business licence issuance, from the registration process and document verification through to the issuance of the business licence.
Second, the implementation of a deemed-approved (fictive-positive) policy, which is being implemented in stages within the risk-based business licensing issuance process. If a response exceeds the service deadline (SLA), the system will automatically advance the process to the next stage.
Third, the government is also giving special attention to Micro and Small Enterprise (MSE) operators through the simplification of self-declaration-based processes within OSS.
Under the enforcement of these regulations, the OSS system has been enhanced with three new subsystems: the Basic Requirements subsystem, the Business Facilities subsystem, and the Partnership subsystem.
Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu said the refinement of these three regulations would serve as the foundation for risk-based corporate licensing reform through the simplification of procedures, strengthening of the Online Single Submission (OSS) system, and enhancement of legal certainty.
"Today's public consultation is being held with the strategic objective of absorbing constructive input from stakeholders, including ministries and institutions, regional governments, business associations, MSME operators and investors, regarding the Draft Amendments to BKPM Regulations Numbers 3, 4 and 5 of 2021," said Todotua after opening the public consultation at the BKPM office in Jakarta on Thursday.
Todotua stated that the revision of the three regulations needed to be carried out in order to accelerate, simplify and provide certainty in business licensing. He noted that input from various stakeholders was urgently needed to refine existing policies.
"Naturally, there is a concept that our Ministry has already prepared," he said.
The refinement of BKPM Regulations Numbers 3, 4 and 5 also aims to achieve the target of 8 per cent economic growth.
He noted that BKPM had found that unrealised investment had reached Rp1,500 trillion, caused by licensing issues. The government is therefore undertaking a breakthrough to reform convoluted bureaucracy.
"Issues such as these — licensing, an unconducive investment climate, overlapping policies and so forth — must indeed be noted and reflected upon collectively," he added.
The refinement of BKPM Regulations 3/4/5 of 2021 is a follow-up to Government Regulation (PP) Number 28 of 2025 on the Implementation of Risk-Based Business Licensing. The three regulations relate to the OSS System, Licensing Services and Supervision, which are now integrated through PP 28/2025.
Previously, the government had issued PP 28/2025 to create an ecosystem that facilitates business licensing. There are three key points that represent important breakthroughs in PP 28 of 2025.
First, certainty of Service Level Agreements (SLA) in the business licensing issuance process. This stipulates deadlines at every stage of business licence issuance, from the registration process and document verification through to the issuance of the business licence.
Second, the implementation of a deemed-approved (fictive-positive) policy, which is being implemented in stages within the risk-based business licensing issuance process. If a response exceeds the service deadline (SLA), the system will automatically advance the process to the next stage.
Third, the government is also giving special attention to Micro and Small Enterprise (MSE) operators through the simplification of self-declaration-based processes within OSS.
Under the enforcement of these regulations, the OSS system has been enhanced with three new subsystems: the Basic Requirements subsystem, the Business Facilities subsystem, and the Partnership subsystem.