BKPM’s Take Over of OSS to Boost Regions’ Investment


The Investment Coordinating Board (BKPM) is preparing to take over the operation of the Online Single Submission (OSS) system from the Office of the Coordinating Economic Minister in January in an effort to increase investments in the regions.

In order to carry out the mandate, BKPM director for investment deregulation Yuliot Tanjung said on Tuesday that the board was preparing the necessary requirements before it took over the system’s operation from the Office of the Coordinating Economic Minister.

“We’re in the process of creating a new division under the deputy of investment services in order to oversee the system, as well as the necessary human resources and IT infrastructure,” he said on the sidelines of a seminar in Jakarta. “Hopefully, it can all be finished soon so that we can take over the operation in January 2019.”

The OSS is intended to simplify the process of obtaining business permits for companies and small and medium enterprises (SME).

The Office of the Coordinating Economic Minister, which is led by Darmin Nasution, has been managing the web-based business licensing system since its launch in July. It also acts as the coordinator for regulatory reform and business harmonization surrounding the new system.

However, the 2018 government regulation on electronically integrated business licensing services stipulates that the operation will be handed over to the Investment Board.

Secretary to the Coordinating Economic Minister Susiwijono told The Jakarta Post that he hoped the transfer could occur in early January as long as the BKPM had fulfilled the requirements.

Both the office and the investment board is seeking to transfer the OSS system’s operation before the presidential election in April as President Joko “Jokowi” Widodo, who is seeking re-election for a second term next year, tries to complete a number of delayed government programs before the election.

In the meantime, the office is upgrading the OSS system in order to resolve issues and help businesspeople obtain business permits online.

However, Susiwijono said, the BKPM would only handle the system’s operational services, while the office would still be responsible to work with related ministries and government institutions on regulatory reform and business process harmonization during stages of licensing issuance.

“There are three important aspects in the OSS system regulation, business process, and service system,” he explained. “The investment board will only take care of the last one, while we’ll still take care of the first two.”

Yuliot expressed hope that the takeover would help accelerate the digitization of the permit application system so that licensing in all ministries and institutions would be integrated.

While the government has launched the OSS, reformed regulations and released 16 economic policy packages to improve the country’s investment climate, Indonesia is still facing many challenges in easing the process of obtaining business permits, particularly in the regions.

The situation often discourages people from opening more business to boost the local economy, according to a survey conducted by the National Development Planning Board (Bappenas)-Canadian joint program on National Support for the Local Investment Climate and Regional Autonomy Watch (KPPOD).

The survey, which was conducted in Southeast Sulawesi and Gorontalo provinces in 2017, highlights difficulties faced by businesspeople in obtaining licenses to legalize their businesses as well as constructing buildings and receiving approval for building permits.

These problems were also found by the World Bank that resulted in Indonesia sliding to 73rd place in its flagship 2019 Ease of Doing Business index from its previous position of 72.


Source: The Jakarta Post