Investment Ministry Revises Three Regulations to Accelerate Business Licensing
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is revising three implementing regulations contained in Government Regulation Number 5 of 2021 on Risk-Based Business Licensing. The revisions are expected to accelerate investment realisation across various sectors.
The revisions will target the electronically integrated risk-based business licensing system, guidelines and procedures for risk-based business licensing services and investment facilities, as well as guidelines and procedures for risk-based business licensing supervision.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the regulatory revisions could support the national economic growth target of 8 per cent by 2029. "This economic growth target is a fairly ambitious figure, but also realistic if it can be achieved," Todotua said in a written statement on Saturday, 5 July 2025.
According to Todotua, resolving business licensing issues and pursuing more stable state revenue in the investment sector are essential. He noted that last year Indonesia lost potential investment of up to Rp 2,000 trillion due to licensing factors.
"Issues such as licensing, an unconducive investment climate, and various overlapping policies have driven up the rate of unrealised investment," Todotua said.
To achieve 8 per cent economic growth by 2029, the government must pursue domestic investment realisation of up to Rp 13,000 trillion, Todotua added. This figure is considerably high compared to the reality of the past 10 years, which only reached Rp 9,900 trillion.
With the revision of the three Ministerial Regulations on Investment, Todotua expressed hope that the business licensing process could be accelerated and simplified. He also claimed the ministry would involve business operators in providing input on the refinement of investment policies going forward.
The revisions will target the electronically integrated risk-based business licensing system, guidelines and procedures for risk-based business licensing services and investment facilities, as well as guidelines and procedures for risk-based business licensing supervision.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the regulatory revisions could support the national economic growth target of 8 per cent by 2029. "This economic growth target is a fairly ambitious figure, but also realistic if it can be achieved," Todotua said in a written statement on Saturday, 5 July 2025.
According to Todotua, resolving business licensing issues and pursuing more stable state revenue in the investment sector are essential. He noted that last year Indonesia lost potential investment of up to Rp 2,000 trillion due to licensing factors.
"Issues such as licensing, an unconducive investment climate, and various overlapping policies have driven up the rate of unrealised investment," Todotua said.
To achieve 8 per cent economic growth by 2029, the government must pursue domestic investment realisation of up to Rp 13,000 trillion, Todotua added. This figure is considerably high compared to the reality of the past 10 years, which only reached Rp 9,900 trillion.
With the revision of the three Ministerial Regulations on Investment, Todotua expressed hope that the business licensing process could be accelerated and simplified. He also claimed the ministry would involve business operators in providing input on the refinement of investment policies going forward.