Antara News are reporting on coordination between the Investment Ministry/ Investment Coordinating Board (BKPM) and the Finance Ministry and Home Affairs Ministry to provide rewards as well as punishments to regions to ensure compliance with regulations on business licensing.
Apparently, this has come about because business licensing regulations, specifically those related to the Online Single Submission (OSS) system, have changed due to the latest Job Creation Laws, which has altered 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 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 the Building Construction Permit (IMB) still is a requirement in several regions, 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 the 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.
Source: Antara News