Deputy Minister Of Investment Compares Business Licensing Cycle With Vietnam: They Are 2 Years Old, We Are 4 Years Old

JAKARTA - Deputy Minister of Investment/Investment Coordinating Agency (BKPM) Todotua Pasaribu said the investment cycle in Indonesia for business operations was fairly long compared to neighboring Vietnam.

According to him, the investment cycle in Indonesia takes 4 to 5 years. Meanwhile, Vietnam only needs about 1.5 to 2 years.

This condition makes Indonesia's investment competitiveness still inferior to Vietnam.

Vietnam today, their investment cycle is 1.5 to 2 years. In us, our investment cycle is approximately still at 4 to 5 years. Why? 1.5 to 2 years of licensing, 1.5 to 2 years of construction. That's a realization. This is a big homework," he said at the Sarasehan 100 Economist event, in Jakarta, Tuesday, October 28.

According to Todotua, Government Regulation (PP) Number 28 of 2025 concerning the Implementation of Risk-Based Business Licensing is a solution to this problem.

In addition, continued Todotua, the government has also implemented a positive fictitious business licensing process as of October 5, 2025.

PP 28 yang disebutkan ini adalah solusi daripada service level agreement. Bahkan kita sekarang melakukan yang namanya fictitif positive. Sudah ada 132 perizinan yang kita fictitif positive, ucapnya.

For example, continued Todotua, the fictitious-positive practice that makes licensing faster is in the hotel sector. He said licensing for business building in the sector could be obtained in the next 28 days.

"We provide certainty of permits to business actors. I take the 28-day hotel example now we issue the permit," he said.

Meski begitu, Todotua bilang, dalam proses pengeluaran perizinan, BKPM juga tetap berhati-hati.

Apalagi adanya perizinan yang berisiko besar seperti tata ruang dan analisis mengenai dampak lingkungan (AMDAL).

“Tetapi kita juga melakukan namanya postpaid. Tanpa mengurangi esensi. Karena kita punya perizinan yang berisiko besar,” ucapnya.

Even so, Todotua said, in the licensing process, BKPM also remained careful.

Moreover, there are large-risk licensing such as spatial planning and analysis of environmental impacts (AMDAL).

"But we also do the name postpaid. Without reducing essence. Because we have permits that are at great risk," he said.