Implementation of One Stop Services on Investment Licenses in Indonesia

Investment Law Indonesia has mandated the establishment of One Stop Services (“OSS”). Following the implementation of OSS, the President has issued regulation on OSS (President Regulation No.27 of 2009). This regulation stipulates that the Coordinating Investment Body (BKPM) will be responsible for establishment OSS in local regions. Further, the Ministry of Industrial delegated its authority to BKPM on Industrial Business License (Izin Usaha Industri), Development License (Izin Perluasan), Industrial Zone Business License (Izin Usaha Kawasan Industri) and Development of Industrial Business Zone (Perluasan Kawasan Usaha Industri) (refer to the Ministry of Industrial Regulation No.147/M-IND/PER/10/2009). Also, the Minstry of Public Works delegated its authority to BKPM on business licenses on Public Works (refer to Ministry of Public Works No.24/PRT/M/2009). This condition reflects that the new cabinet has commitment to improve the Investment Climate particularly to establish OSS in Indonesia.

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