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Lawmaker Urges Deregulation to Boost Investment

| | Source: RRI.CO.ID | Regulation
Lawmaker Urges Deregulation to Boost Investment
Image: RRI.CO.ID

Lawmaker Urges Deregulation to Boost Investment

  • 16 Mei 2026 09:44 WIB

  • Voice of Indonesia

Key Points

  • House Commission VI lawmaker M. Sarmuji urged the government to review regulations that complicate and delay the investment licensing process.

  • He noted overlapping rules between central and local administrations remain a major obstacle, often creating disputes over authority.

RRI.CO.ID, Jakarta - Indonesia’s investment climate is once again under scrutiny, with calls for the government to streamline regulations that hinder capital inflows and job creation.

House of Representatives Commission VI lawmaker, M. Sarmuji, stressed that delays in business licensing must not persist. He urged the government to evaluate regulations that unnecessarily complicate the investment process. “We must review all regulations that hinder investment permits. Back then, there was a term called deregulation,” Sarmuji said in Jakarta on Friday, May 16, 2026, as quoted by Antara.

He emphasized that simplifying business permits must be accompanied by regulatory synchronization across agencies to ensure efficiency and provide legal certainty for investors. Overlapping regulations between the central government and local administrations remain a major obstacle, often leading to disputes over authority. “There are weaknesses in coordination, both vertically and horizontally,” he noted.

Sarmuji added that the complex licensing issue has persisted for years without resolution. He welcomed President Prabowo Subianto’s initiative to prioritize national regulatory reform.

Earlier, President Prabowo urged ministries and agencies to accelerate bureaucratic reform in business licensing. “Businesspeople are also complaining. They want to work, and they want to invest, but sometimes they have to wait for a permit for one year, two years,” the President said during an event at the Attorney General’s Office on Wednesday, May 13.

The President also instructed the Minister of State Secretary, Prasetyo Hadi, to establish a deregulation task force to eliminate overlapping rules. “We will crack down on violators, but those who are good, who truly want to work, yes, they must be helped,” he said. ***

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