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Kamis, 03 Juli 2025

Vice Minister of Investment Calls for Strengthening OSS, Fictitious Positive Introduced to Ensure Licensing Certainty

Jakarta, 3 July 2025-The Government of Indonesia continues to advance its business licensing reform agenda to improve the investment climate. One of the key breakthroughs introduced is the application of the Fictitious Positive principle in the licensing process. This mechanism allows business permits to be automatically granted if the relevant authority issues no decision within a specified timeframe.

The Vice Minister of Investment and Downstream Industry/Vice Chairman of the Indonesia Investment Coordinating Board (BKPM) Todotua Pasaribu emphasized that this principle aims to provide legal certainty for business actors applying for permits through the Online Single Submission (OSS) system.


“We have developed a concept within the Ministry, namely a service level agreement framework. Within that framework, there is a principle called Fictitious Positive. Its purpose is to ensure certainty,” stated Todotua during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstream Industry/Chairman of BKPM, held on Thursday (3/7) at the Ministry’s office in Jakarta.


“Our Ministry handles around 1,700 types of licenses, which are connected to approximately 17 other ministries or institutions.”


Todotua further underscored that business licensing reform plays a critical role in the government’s strategy to achieve a national economic growth target of 8% over the next five years. To achieve this target, the government aims to secure investment realization totaling IDR13,000 trillion, sourced from both foreign direct investment (FDI) and domestic direct investment (DDI). Therefore, streamlining the licensing process is essential to attracting investment.


"Licensing services are a fundamental indicator in achieving investment realization. Investment starts with licensing,” Todotua asserted.

In addition to accelerating and ensuring certainty in licensing services, the government is committed to enhancing the OSS system as the core platform for risk-based business licensing. According to Todotua, OSS is not merely an administrative tool, but also a platform designed to consolidate cross-sectoral efforts, enabling integrated analysis, decision-making, and policy implementation.


“There are still sectors not fully integrated into the system, and we are addressing that. OSS is being developed into a consolidation platform for services, analysis, and future strategic initiatives,” he explained.


Public Consultation

The public consultation is part of the drafting process for a new Ministerial Regulation that will replace BKPM Regulations No. 3, 4, and 5 of 2021. These existing regulations have served as the primary reference for implementing risk-based business licensing, governing the establishment of Norms, Standards, Procedures, and Criteria (NSPK), investment activity reporting, as well as the supervision and enforcement of business permits.


The consultation was attended by a broad range of stakeholders, including representatives from technical ministries and agencies, regional governments, business associations, Micro, Small, and Medium Enterprises (MSMEs), and investors. During the discussion, participants provided input on challenges faced in OSS implementation, the need for regulatory harmonization across sectors, and the importance of strengthening local government capacity as the frontline of service delivery.


The insights gathered from this consultation will inform the refinement of the regulation to create a licensing policy framework that is simpler, more responsive to industry dynamics, and capable of ensuring legal certainty and effective oversight across all levels of government.


Three keynote speakers participated in the discussion: Deputy for Coordination of Energy and Mineral Resources, Coordinating Ministry for Economic Affairs Elen Setiadi;  Deputy for Investment Climate Development, Ministry of Investment and Downstream Industry/BKPM Riyatno; and Deputy for Investment Information Technology, Ministry of Investment and Downstream Industry/BKPM Ricky Kusmayadi.


Elen Setiadi conveyed that President Prabowo Subianto had mandated a simplification of regulations. He noted that Government Regulation (GR) No. 28 of 2025 on the Implementation of Risk-Based Business Licensing is intended to ensure simplification, legal certainty, and efficiency in the licensing process.


“If we fail to deliver on that, then our commitment to the President, made before GR 28/2025 was signed, will not be fulfilled. We must prove through the revision of GR 5/2021 that the new framework is simple, certain, and efficient,” Elen said.


He also emphasized that all derivative regulations issued by ministries or agencies must align with the intent of GR 28/2025. In the event of regulatory inconsistencies, the provisions of GR 28/2025 and the forthcoming Ministerial Regulation on Investment and Downstream Industry will take precedence.


“There should no longer be confusion among business actors when faced with conflicting regulations. The authoritative references are GR 28/2025 and the Ministerial Regulation issued by the Ministry of Investment and Downstream Industry,” Elen concluded.



For further inquiries, contact:

Protocol and Public Relations Bureau

Ministry of Investment and Downstream Industry/BKPM

Email: humas@bkpm.go.id



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