By: Abdul Kohar)*
The government continues to strive to facilitate the flow of investment, including by initiating the birth of the Job Creation Law. The public also appreciates the implementation of the Job Creation Act which is expected to immediately encourage economic recovery affected by the Covid-19 pandemic.
Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the Job Creation Law had a positive impact on the Indonesian economy, especially in efforts to increase investment realization. Because one of the important points regulated in this regulation is to facilitate business licensing.
On the occasion of the 2022 Economic Outlook, Bahlil said, one of the substances of the job creation law is licensing for investment. So the Job Creation Law is a gateway to increase investment realization in 2022.
He said that Article 174 of the Job Creation Law states that the licensing authority that exists in ministries/agencies and regional heads is interpreted as the authority of the President which is delegated to these officials. This authority will be regulated through norms, standards, procedures and criteria (NSPK).
One of the derivative regulations of the Job Creation Act is Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing, which states that licensing arrangements must be electronically based via online single submission (OSS). All these processes are carried out at the Ministry of Investment and are carried out in a transparent manner.
Decisions regarding the issuance of permits can be made immediately when the required documents are complete. If the file is complete and then there are ministries or institutions that do not technically agree, the ministry of investment can automatically do so by using positive fictitious.
This is all in order to encourage certainty, 18 Ministries/Agencies including the Ministry of Finance. So the fiscal incentives such as tax holidays, tax allowances and then import VAT are all in the Ministry of Investment. He did not deny that the implementation of OSS has not run optimally. Because the OSS Risk Based Approach (RBA) will only run on August 9, 2021.
But licensing for MSMEs runs optimally. BPKM can issue a Business Identification Number (NIB) for MSMEs in the range of up to 6,000 permits in one day. Currently, the Ministry of Investment continues to integrate with other Ministries/Institutions.
The effect is that the increase in investment occurs due to the speed of permit processing as well. So it’s amazing. This of course takes time to do a deeper synchronization.
Previously, in 2019, there were around 24 companies that had entered the pipeline with a value of IDR 708 trillion. However, a number of companies were hampered in realizing their investments due to various investment cases.
The length of the investment licensing process is due to the many overlapping regulations between the central government and local governments. This caused an investment of IDR 708 trillion to stall in 2019.
The stalling of hundreds of investments is due to sectoral arrogance between ministries/institutions, ministries/agencies and local governments. The complexity of this problem is compounded by the presence of individuals who take advantage of the investment licensing process for personal gain.
The Ministry of Maritime Affairs and Fisheries (KKP) stated that investment opportunities in the national marine and fisheries sector are getting wider because simplification of licensing has become one of the focuses of this ministry.
Acting Director General of Capture Fisheries M Zaini gave an example of one area of fisheries management that has not been optimally worked on, among others, in WPPNRI 711 (covering the waters of the Karimata Strait, Natuna Sea and South China Sea), namely in areas above 14 nautical miles, exclusive economic zone to the high seas. He is of the opinion that the existence of the Job Creation Law will not make it difficult for fishermen but will instead side with fishermen.
Even before the work creation law was enacted, the Directorate General of Capture Fisheries of the KKP had initiated fast online licensing, where 1 hour permits could be issued through the fast service permit information system (SILAT). Thousands of permits have been issued since the launch of the service at the end of 2019.
According to Zaini, the existence of the Job Creation Law also makes the requirements for a capture fishery business permit easier. Several documents that were previously regulated and authorized by the Ministry of Transportation have now become the authority of the KKP. Of the dozens of documents required have now been trimmed.
Trimming and removing overlapping rules will of course reduce the previously notoriously convoluted licensing process. The Job Creation Law is a solution so that the investment licensing process will be faster and the economy in Indonesia will continue to rise.
)* The author is a contributor to the Press Circle and Cikini Students
