Omnibus Law will Ease Investment: Coordinating Minister

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 12 November 2019
Category: News
Read: 75 Views

Coordinating Minister for the Economy Airlangga Hartarto delivers press conference after a Limited Cabinet Meeting at the Presidential Office, Jakarta, Monday (11/11). Photo by: Rahmat/PR.

The Government has agreed on omnibus law draft, Coordinating Minister for the Economy Airlangga Hartarto has said.

“This Omnibus Law will simplify licensing process and support investment ecosystems. It will also stipulate the Ease of Doing Business (EoDB) and encourage research and innovation to improve competitiveness,” Airlangga told journalists after attending a Limited Cabinet Meeting at the Presidential Office, Jakarta, Monday (11/11).

Airlangga added that the Omnibus Law is also related to government administration, stipulating that the President has authority to overrule decisions taken by ministries, provincial governments or local governments. The Omnibus Law, he added, would be based on administrative law or civil law.

“We shift the regulation for business, investment and trade ecosystem from criminal law to civil law,” Airlangga explained.

The Coordinating Minister went on to say that the Omnibus Law would provide facilities for land acquisition. The Government would support land acquisition and licensing process, especially for national strategic projects or government programs.

In terms of the philosophy of licensing, Airlangga said, the Government will shift the philosophy from permit-based to risk-based.

“Small and medium enterprises that do not pose risks can register without any complicated licensing process,” Airlangga said, adding that the Government would encourage Special Economic Zones (SEZs) to provide One Stop Services (OSS) for licensing process.

Airlangga further said that the Omnibus Law would simplify the requirements for establishment of Limited Liability Company by removing minimum working capital.

“The Omnibus Law will be included in the 2020 National Legislation Program (Prolegnas),” Airlangga said, adding that the Government will continue coordination with relevant parties to ensure that in December the draft and academic review of the Law can be completed.

Airlangga went on to say that the Omnibus Law would not accommodate six business sectors, namely gambling and casinos, marijuana cultivation, coral, and chemical weapons industry.

Regarding the Negative Investment List (DNI), Airlangga said that the Government is currently preparing Presidential Regulation on positive list or priority list investment to provide import substitution and boost exports.

“We will map the sectors. Gasification, for example, will be included in the priority list, while automotive raw material industry and electronic raw materials will be included in the positive list. So the strengthening of the added value structure of the industry will be included in the positive list,”

“The positive list is expected to be released in January,” Airlangga said. (TGH/RAH/ES)

Translated by: Ridwan Ibadurrohman
Edited by: Yuyu Mulyani

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