Prabowo Orders State Secretary to Form Deregulation Task Force to Cut Licensing
President Prabowo Subianto has admitted to receiving numerous complaints from foreign investors regarding the lengthy business licensing processes in Indonesia.
He revealed this during the handover of administrative fine proceeds amounting to Rp10.2 trillion and 2.3 million hectares of land from the Forest Area Regulation Task Force (Satgas PKH) at the Attorney General’s Office building on Wednesday, 13 May 2026.
“Many investors, including those from abroad, complain that licensing in Indonesia takes far too long, and sometimes the requirements are utterly unreasonable,” said Prabowo.
He stated that he has tasked the State Secretary (Mensesneg) Prasetyo Hadi with gathering experts to form a task force on licensing deregulation.
Prabowo wants the complicated licensing processes to be simplified. According to him, entrepreneurs intending to invest in Indonesia must be supported to enhance the people’s economy.
“Simplify it, don’t make it difficult. Entrepreneurs must be helped and supported. We discipline the naughty ones, but those who are good and truly want to work must be assisted,” he explained.
On the other hand, Prabowo explained that he still encounters bureaucrats who deliberately complicate licensing processes to find opportunities for demanding money.
Prabowo expressed astonishment because, although the government simplifies licensing, ministries and agencies complicate it again through ministerial regulations and technical rules.
“The tendency in regulations is the initiative of bureaucrats, to be frank, to seek opportunities. Some later demand kickbacks or money so that the permit is expedited,” he clarified.
Prabowo even admitted to receiving complaints from business groups wanting to work and invest in Indonesia but facing permit difficulties.
He noted that permits often only emerge after one to two years from the application process. Meanwhile, Prabowo said, in other countries, licensing can be completed in just two weeks.
“Entrepreneurs also complain; they want to work and invest, but sometimes they wait for permits for one year, two years,” he stated.
“Whereas in other countries, it’s two weeks. We must refer to our neighbours. If they can issue permits in two weeks, why do we take two years?” Prabowo concluded.