As the winner of the 2024 Presidential Election Prabowo Subianto prepares to assume State leadership, the Secretary of the Task Force for the Job Creation Law, Arif Budimanta, expressed hope that the implementation of the Job Creation Law will continue under the new administration.
“We hope the economic transformation process, which is encapsulated within the Job Creation Law, will continue uninterrupted,” Arif told a “Implementation of Business Licensing Services through Online Single Submission – Risk-Based Approach (OSS-RBA)” in Bandung on Wednesday, July 10, 2024.
He emphasized the importance of continuous improvement and refinement of the Job Creation Law. He reassured that there are no concerns regarding its implementation straying from established guidelines.
“The personnel involved remain the same, both in the bureaucracy and at the local levels. The spirit of continuous improvement for better change remains intact,” Arif said.
He asserted that there is no need for special coordination for implementing the Job Creation Law during the transition to Prabowo’s administration, as the changes are only at the leadership level.
“This is not something to be worried about, especially since the underlying spirit and needs remain the same to achieve the ‘Golden Indonesia 2045’ vision,” Arif remarked.
Impact on business licensing
Research by the Demography Institute of the Faculty of Economics and Business at the University of Indonesia, supported by the Task Force for the Acceleration of Socialization of the Job Creation Law, shows that the new business licensing system has made it easier for entrepreneurs to obtain permits.
Turro Selrits Wongkaren, Head of the Demography Institute, highlighted that the business licensing bureaucracy has undergone fundamental changes. Previously, all business activities required permits; now, they are classified based on risk.
“Business activities are categorized into four risk levels: low, medium-low, medium-high, and high,” Turro said.
Since July 2, 2021, business licenses have been managed through the OSS-RBA system, as regulated by the Minister of Investment/Head of BKPM’s Letter No. 1342/A.1/2021.
Improvements in licensing process
The percentage of business owners who self-register through the website has increased from 26.42 perent to 30.48 percent, while those seeking third-party assistance have decreased.
Turro noted that most entrepreneurs agree that the registration channel is accessible, the information is easy to understand, the requirements are not burdensome, the process is relatively quick, and overall management is straightforward.
However, certain aspects of the socialization and explanation of the OSS-RBA-based licensing concept need improvement, such as:
- The need for a comprehensive database of business actors;
- Tutorial videos that are detailed and target-specific;
- Training for introducing the latest OSS system;
- Clear and simple information, along with assistance in determining business fields based on the Standard Classification of Business Fields (KBLI).
This focus on ongoing improvements and the continuous implementation of the Job Creation Law aims to sustain economic transformation and support the growth of the business environment in Indonesia.
