Jakarta. The government on Monday (09/07) launched an online single submission system, or OSS, which aims to simplify procedures for businesses to invest in Indonesia. However, it is "not yet perfect," a minister said.
OSS aims to bypass the entire permitting processes that can take months to complete, by connecting all ministries, agencies and local governments through an online platform. This allows investors to apply for permits by uploading necessary documents just once.
It is also an upgrade to the existing single-window service at the Investment Coordinating Board (BKPM), which could only process a limited number of permits.
"Investors mostly complained about regulations, deemed as excessive, and prolonged procedures. […] OSS is a reflection of the government's seriousness to align all regulations that are overlapping," BKPM chairman Thomas Lembong said during a press conference.
Shinta Kamdani, deputy chairwoman of the Indonesian Chamber of Commerce (Kadin), said Indonesia can survive global volatility by increasing its exports and attracting more investment.
"This [OSS] is what we've been waiting for … but there are doubts concerning its execution … Now the question is whether regional leaders are ready to implement it, because otherwise there'll be no use of it," she told reporters.
Coordinating Economic Affairs Minister Darmin Nasution, however, said the system is not yet perfect.
There are 474 out of 514 regions that do not have detailed spatial planning (RDTR), which prevents them from adopting the system. The central government will provide special funds to encourage the regions to complete their spatial planning over the next few months, Darmin said.
The system was supposed to be launched by BKPM last month, but was eventually taken over by the Coordinating Ministry of Economic Affairs. It will return to BKPM in about six months.
"Even though we have launched the system, we don't claim it is perfect. There are certainly things that still need to be done," the minister said.
Darmin said the timing of the launch was right, considering the uncertainties shrouding the global economy, which has been hit by a trade war between the United States and China.
President Joko "Jokowi" Widodo's administration has been working on improving Indonesia's investment climate by decreasing the number of tangled regulations. It has issued 15 economic policy packages since September 2015.
The reforms helped Indonesia reach its highest foreign direct investment in the past seven years, with Rp 430.5 trillion ($34 billion).
Indonesia is now 72nd in the World Bank's 2018 Ease of Doing Business index. When Jokowi began his term in 2014, the country ranked 114th. The president wants it to rank 40th by the end of his term next year.