Investment Ministry Guarantees Business Permit Certainty: All Have Time Limits Now
Jakarta: The government has pledged certainty in the investment licensing process through the issuance of Government Regulation (PP) Number 28 of 2025. The regulation establishes clear time limits for all licensing processes and introduces an automated approval system for permits not processed within the deadline.
"All permits now have time limits. Every single one has a deadline," said Secretary of the Ministry of Investment and Downstreaming/Principal Secretary of BKPM Heldy Satrya Putera to Media Indonesia on Sunday, 6 July 2025.
According to Heldy, the licensing system is now equipped with a monitoring dashboard to ensure processes run on target. If a deadline is exceeded, the system will automatically deem the permit approved.
"When the time is up, it will be issued. Because it is considered to have been approved," he said.
However, Heldy stressed that the policy would be implemented gradually and carefully, particularly for technical permits requiring field measurements. Technical matters are said to still require time and depend on the location.
He also noted that the government now applies a Service Level Agreement (SLA) system to ensure measurable and monitored service durations.
**Acknowledges OSS Technical Disruptions but Says They Can Be Resolved**
Heldy also acknowledged that technical disruptions can occur in licensing systems such as OSS (Online Single Submission), but they can generally be resolved. He highlighted misunderstandings among users who often blame the system when the issue actually lies with incomplete documentation.
"Sometimes people don't understand and say the system is wrong. But when checked, it turns out there are documents that haven't been completed," he said.
PP 28/2025 is expected to shift the business community's perception of government licensing services from being considered slow and opaque to being more measurable and reliable. "What is certain is that we provide certainty. Not just faster, but more certain," Heldy concluded.
**Strengthening Economic Transformation**
Previously, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said PP 28/2025 was introduced as part of the government's effort to strengthen economic transformation. The risk-based business licensing regulation replaces PP 5/2021.
"The issuance of this regulation demonstrates the government's commitment to continuing to build a business licensing ecosystem to support investment growth. Through strengthened regulation and an integrated system, this regulation is expected to simplify processes, accelerate services, and provide clarity and certainty for all business operators," he said, as quoted from a press release.
Licensing issues are known to be one of the factors that caused Indonesia to fail to secure investments worth Rp1,500 trillion in 2024.
"We found that in 2024, the unrealised investment figure was around Rp1,500 trillion, possibly reaching Rp2,000 trillion. Why unrealised? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," said Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu on Thursday, 3 July 2025.
"All permits now have time limits. Every single one has a deadline," said Secretary of the Ministry of Investment and Downstreaming/Principal Secretary of BKPM Heldy Satrya Putera to Media Indonesia on Sunday, 6 July 2025.
According to Heldy, the licensing system is now equipped with a monitoring dashboard to ensure processes run on target. If a deadline is exceeded, the system will automatically deem the permit approved.
"When the time is up, it will be issued. Because it is considered to have been approved," he said.
However, Heldy stressed that the policy would be implemented gradually and carefully, particularly for technical permits requiring field measurements. Technical matters are said to still require time and depend on the location.
He also noted that the government now applies a Service Level Agreement (SLA) system to ensure measurable and monitored service durations.
**Acknowledges OSS Technical Disruptions but Says They Can Be Resolved**
Heldy also acknowledged that technical disruptions can occur in licensing systems such as OSS (Online Single Submission), but they can generally be resolved. He highlighted misunderstandings among users who often blame the system when the issue actually lies with incomplete documentation.
"Sometimes people don't understand and say the system is wrong. But when checked, it turns out there are documents that haven't been completed," he said.
PP 28/2025 is expected to shift the business community's perception of government licensing services from being considered slow and opaque to being more measurable and reliable. "What is certain is that we provide certainty. Not just faster, but more certain," Heldy concluded.
**Strengthening Economic Transformation**
Previously, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said PP 28/2025 was introduced as part of the government's effort to strengthen economic transformation. The risk-based business licensing regulation replaces PP 5/2021.
"The issuance of this regulation demonstrates the government's commitment to continuing to build a business licensing ecosystem to support investment growth. Through strengthened regulation and an integrated system, this regulation is expected to simplify processes, accelerate services, and provide clarity and certainty for all business operators," he said, as quoted from a press release.
Licensing issues are known to be one of the factors that caused Indonesia to fail to secure investments worth Rp1,500 trillion in 2024.
"We found that in 2024, the unrealised investment figure was around Rp1,500 trillion, possibly reaching Rp2,000 trillion. Why unrealised? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," said Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu on Thursday, 3 July 2025.