JAKARTA - The Ministry of Mineral Resources and Investment / BKPM can issue business permits if the relevant ministries or agencies do not make a decision within the time limit that has been set. This scheme is applied to reduce the uncertainty that investors have complained about.
Minister of Mineral Resources and Investment/Head of BKPM Rosan Roeslani said the time limit for services was regulated through Government Regulation Number 28. The provisions apply in the licensing process involving 18 ministries and agencies.
"If in 10 days they do not return to us, in the sense of accepting or not accepting, I can automatically issue the permit as the Investment Ministry," said Rosan at the Presidential Office, Presidential Palace Complex, Jakarta, Thursday, July 16.
According to Rosan, before the rule came into force, the deadline for completing the permit had actually been agreed upon through a service level agreement. However, there is no certainty when the process passes the deadline.
Permits that should be completed in 10 days can be delayed to 15 days, one month, even three months.
"Previously the agreement was 10 days, but it could be 15 days, it could be 20 days, it could be a month, it could be three months. There is no limit," he said.
Now, each ministry and agency must process applications according to the agreed deadline. BKPM is the entry point for licensing before the application is forwarded to the technical agency.
Rosan said certainty of time was one of the main considerations for investors. Direct investment is different from investment in the capital market because the capital invested cannot be withdrawn quickly.
Investors, said Rosan, calculate risks, potential profits, and economic, political, and social stability before investing capital in the long term.
The government is also integrating the Online Single Submission or OSS system with 18 ministries and agencies. This process increases the burden on the system because data exchange is carried out electronically.
BKPM plans to strengthen OSS using blockchain technology and artificial intelligence or AI. The technology is aimed at making the licensing process faster, certain, and easy to monitor.
Rosan said the improvement received a positive response from business associations as well as domestic and foreign investors. They need certainty about the length of the process and the time it takes to issue permits.
"If they apply for a permit A and it takes 10 days, yes, the permit will be issued in 10 days. If it takes 15 days, yes, 15 days," he said.
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