Business licensing regulations, specifically those related to the Online Single Submission (OSS) system, has changed due to Job Creation Laws which alters the wordings and requirements.
"We conduct evaluations of regions that comply with the regulation and there will be penalties within the evaluation," Investment Climate Development Deputy at BKPM Yuliot noted at a hearing meeting here on Monday.
"In relation to regions' compliance, we also provide rewards coordinated with the Finance Ministry, in the form of additional regional incentive funds," he added.
An example of this non-compliance includes the fact that Building Construction Permit (IMB) still is a requirement in several regions, he noted.
This is despite the fact that the government, along with the issuance of the Job Creation Law, has removed IMB and replaced it with the Building Construction Approval (PBG).
PBG is the licensing term used to be able to build a new building or transition the function of a building.
Yuliot said he expects the reward and punishment scheme will encourage improvements in business services.
In the future, the penalty can become more severe, not just in the form of regional incentive reductions, but also suspension of general and special allocation funds (DAU and DAK) until an improvement was made.
However, he acknowledged that the central government continues to improve the service system in OSS, since it does not yet have regional regulations as a requirement for the issuance of PBG.
During the meeting, member of House of Representatives (DPR) Commission VI Darmadi Durianto urged the Investment Ministry/BKPM to be more strict in issuing penalties concerning this problem.
This is important, given that the regulation is part of the implementation of the Job Creation Law ratified by the DPR, he said.
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Translator: Ade irma Junida, Fadhli Ruhman
Editor: Rahmad Nasution
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