Breaking Through Complex Permits, Jokowi Issues Presidential Instruction 7 of 2019

IMPERIUMDAILY.COM-JAKARTA – The number of complaints and the complexity of business licensing in the regions immediately responded by the President of Indonesia Joko Widodo. The president from Solo issued a breakthrough in the form of Presidential Instruction (Inpres) No. 7 of 2019 concerning the Acceleration of Ease of Doing Business.

This Presidential Instruction was promulgated on November 22, 2019 and has spread to almost all businessmen and ministries, two days after promulgation.
The Presidential Instruction consists of six instructions. The instructions given were the Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, all ministers, and the cabinet secretary.

In the first instruction, the Head of BKPM was ordered to coordinate the improvement of the ease of doing business system. Including evaluating permits and investment facilities provided by ministries or agencies. The Head of BKPM is also given the authority to facilitate and provide licensing arrangements, including investment facilities.

The second directive, the President instructed ministers and institutional leaders to identify and review the legislation that impedes investment. Each minister must reduce the number, simplification of procedures, acceleration of licensing through the revocation of obstruction of licensing legislation in each ministry

The Ministry is also obliged to follow up on the recommendations of BKPM and delegate the authority of business licensing and investment facilities to the Head of BKPM.

The third instruction contains instructions for the ministry to coordinate with business actors or associations in relation to licensing evaluation.

In the fourth dictum of the instruction, President Jokowi ordered BKPM to make Norms, Standards, Procedures and Criteria (NSPK) of business permits and investment facilities for delegations given by ministries or agencies.

“BKPM reports the implementation of its duties to the President every three months or at any time,” Jokowi wrote in the Presidential Instruction.

In the fifth dictum, the President ordered the Cabinet Secretary to supervise the implementation of the Presidential Instruction.

In a separate place, Punto Wijoyo, the authority of PT Lotte Grosir Indonesia feels grateful for the issuance of Presidential Instruction 7/2019 regarding the Acceleration of Ease of Doing Business. He considered the presidential instruction was issued at the right time. Considering he himself became a victim of investment obstruction in Malang Regency.

“We are very grateful that the President issued the presidential instruction. In accordance with the problems we faced in Malang Regency. This indirectly answered the letter we sent earlier to the President,” Puto told, Saturday 30 November 2019.

Just to remind, on November 19, 2019, PT Lotte Grosir Indonesia corresponded with President Joko Widodo because his license was blocked. Regency Government is not willing to issue IMB, HO and IUTM on the grounds that there is a regional regulation clause which prohibits foreign investors (PMA) from establishing a modern market in Malang Regency.

Punto hopes the BKPM team will soon visit Malang Regency. Moreover, the letter he sent to the president had also been copied to the Head of BKPM RI Bahlil Lahadalia. “We hope our letter will be responded to quickly and we will be assisted by bad permits in Malang Regency,” hoped this fishing hobbyist.

PT Lotte Grosir Indonesia will establish a wholesale supermarket in Singosari, Malang Regency. The total investment value is close to Rp 1 trillion. Unfortunately, after completing 90 percent of the licensing process, Malang Regency Government suddenly stopped the process. Even though licensing is only 20 percent left. Regency Government refuses to issue HO, IMB and IUTM permits (modern store business license).

The main obstacle is Malang Regency Regulation 3/2012 concerning Protection and Empowerment of Traditional Markets and Structuring and Control of Shopping Centers and Modern Stores.

District government takes refuge in article 10 paragraph (2) letter (a) of Local Regulation 3/2012 which reads the establishment of shopping centers and modern shops must be domestic investment. (yos)

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