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Head of Bappenas: Omnibus Law Enhance Investment Ecosystem

, -  The Omnibus Law aims to enhance the investment ecosystem which includes 3 core substances, including: licenses, investment permits and requirements, government administration, and facilities and incentives.

First, the license, permits and investment requirements have 3 objectives.

1.Shifting the business licensing process into the Risk-Based Approach (RBA)

a.Basic Permit (Location Permit, Environmental Permit,  Building Construction Permit/IMB, Certificate of Eligibility to Function/SLF)

b.Removing the Business License with the implementation of Operational/Commercial Permit that is based on RBA

2.Simplification of Investment Requirements. Regulation of the Business Sector for Investment refers to the Investment Law

3.There are only six Closed Business Sectors, while other sector are restricted to the regulation refers to sectoral Law (UU) or Government Regulation (PP)

Second, government administration, the objectives are:

1.Arrangement of licensing and permit authority, and implementation of sectoral law

2.The establishment of Norms, Standards, Procedures, and Criteria (NSPK) by the National Government

3.Law enforcement (Criminal Sanctions) 

Third, ease and incentives, are:

1.Ease of starting business (the capital requirement for company establishment, land allocation, IMB, SLF, removing Nuisance Permit)

2.Incentives: immigration, patent, halal certificate, food and drugs certificate

Hopefully the existence of the Job Creation Law can improve the investment ecosystem in Indonesia, which is expected to absorb labor and create economic growth.

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