Gov’t to Draft Omnibus Law to Ease Licensing Process

Coordinating Minister for the Economy Darmin Nasution answers reporters’ questions after attending a limited meeting, at the President’s office, Jakarta, Wednesday (25/9). (Photo by: Rahmat/PR)

In a bid to boost investment, ease business licensing and simplify regulations on investment, the Government has announced plans to draft an omnibus law that will amend several laws seen as slowing the issuance of business licenses, Coordinating Minister for the Economy Darmin Nasution has said.

The draft is expected to be completed next month, he added.

“The omnibus law is deemed necessary because there are many laws with ministers implementing the laws. In fact, issuing permits, for example, is an implementation of the President’s authority as head of government,” said Darmin after attending a limited meeting on Investment Arrangement and Requirements, at the Presidential Office, Jakarta, Wednesday (25/9).

The omnibus law, according to Darmin, aims to re-structure authority, adding that laws implemented by ministers or regional heads are actually under the authority of the President who delegates it to the ministers and regional heads. “The omnibus law aims to avoid overlapping authorities,” he added.

Darmin went on to say that the scheme has been adopted since a year ago in the form of the online single submission (OSS); yet, it did not work in the regions.

Quoting President Joko “Jokowi” Widodo, Darmin said there are 74 laws in which some of the articles need to be amended or revoked; hence, a law is required.

One of the 74 laws that will be revised is Law Number 23 of 2014 on Regional Government. The Government plans to revise clauses regarding norms, standards, requirements and criteria (NSPK). With these changes, Darmin expressed hope that licensing will be simpler.

“That is the omnibus law,” he said, adding that the President calls on ministries/institutions to provide a list of their business licenses. Darmin also asserted that some businesses need licensing while some others do not. (FID/RSF/RAH/JAY/ES)

Translated by: Muhardi

Edited by: M. Ersan Pamungkas