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The Government Guarantees Ease of Business Licensing in Indonesia

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By: Savira Ayu)*

Business licensing in Indonesia will be facilitated by the government and there is already a legal umbrella, namely the Job Creation Law. In the law, there are clusters of ease of doing business and clusters of MSMEs that will make it easier for business people to get permits and trade in their own country. If business licensing is facilitated, the business world in Indonesia will be more dynamic.

The pandemic has shaken the financial condition of many people, including entrepreneurs. They must be willing to get mediocre profits, because people’s purchasing power has decreased drastically. The businessmen also understand that the pandemic is happening globally and the international business world is not doing well.

To help entrepreneurs, the government made a job creation law. Why not provide social assistance (bansos) continuously? The reason is because President Jokowi wants to give a hook, not a fish. In a sense, if there is a law that supports entrepreneurs, their business will run smoother. Meanwhile, if the assistance is in the form of cash, it can be spent on consumptive things.

In the Job Creation Law, there are clusters of ease of doing business and clusters of SMEs, which are deliberately created to expedite the performance of business people in Indonesia. Public policy expert Cecep Darmawan stated that the Job Creation Law is an effort to create jobs through ease of doing business for MSMEs (micro, small and medium enterprises). Also improve the investment climate.

In a sense, the ease of doing business through uncomplicated licensing will make entrepreneurs, especially SMEs businessmen, more successful. The reason is because if they have taken care of licensing and get a business license number, the business will have legal status. With this legality, banks will be more trusted to get loans with low interest rates.

If entrepreneurs get a capital loan, they will be enthusiastic to reopen their shops, which have faltered because of the pandemic. They will be happy to do business and earn good profits. This positive domino effect is expected by the government, so that the business world in Indonesia will be more lively, and move the wheels of the economy quickly.

In the past, entrepreneurs had to take care of HO permits, then for the MSME level, they only needed a business license number (NIB). The reason is because the current business license is based on risk. Where MSME businesses are considered low risk and they are happy because they will get NIB quickly and there is no need to complicate the management.

Licensing and how to get NIB will be made easier because they are handled via OSS (online single submission). With a sophisticated computerized system, a business license can be issued a maximum of 5 working days (provided that it meets the requirements). This speed of licensing makes many entrepreneurs flock to take care of it, let alone submit it via cellphone or laptop. Very practical and only requires a strong internet connection.

By managing via online single submission, it will reduce the possibility of extortion or requests for facilitation money from rogue elements. It is no longer a secret that there are people who have the heart to ask for even hundreds of millions for business permits. However, with the online system, there are no loopholes and corruption will be eradicated to the root. Entrepreneurs will not be afraid to apply for permits because there are no unofficial traction.

In addition, the administration of business licenses is also 100% free of charge by the government. This is a commitment and guarantee to facilitate business licensing, because the government is aware that MSME businessmen almost collapsed during the pandemic. If the management of the permit is free it will trigger them to get it.

Then, it will be easier for people who will form a business in the form of a company. The reason is because if in the past the company was founded by at least 2 people, now it can only be founded by 1 person. With the status of the company, the business will be more valid, legal, and gain the trust of many people. He will be more enthusiastic in trading because he has officially owned a limited liability company.

Moreover, the company is also a legal entity, so it is completely legal. If it is a legal entity, the owner of the company can spread its wings. For example, by venturing into the export market and becoming an international businessman. He will get a much higher profit, and enjoy this position because of the legality of the business which is really facilitated by the government.

With the various ease of business licensing provided by the government, it is hoped that business people will be more enthusiastic about trading. Even though they were battered at the beginning of the pandemic, now is the time to get up again. If Indonesian entrepreneurs are enthusiastic, they will move the wheels of the country’s economy and enliven the business world in Indonesia.

The government guarantees ease of business licensing in Indonesia with the Job Creation Act, and is very beneficial for business people, especially MSME owners. They must be helped because they are the backbone of the economy in this country. With valid legality, entrepreneurs will be calmer in trading and able to play in the international realm.

)* The author is a contributor to Pertiwi Institute

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