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JC&A Reinvents Rules

Indonesia:  Risk-based Approach for Business Licensing

On 22 November 2019, the newly reelected President launched a massive reform program to accelerate the review, reform and streamlining of the licensing system under the leadership of the Investment Coordinating Board (BKPM) and the Coordinating Ministry for Economic Affairs (CMEA). A central element of this reform consists in the review and reform of licenses and permits considered unfavorable for investors and businesses and more particularly to integrated into all licenses a risk-based approach. The new policy was embedded in the Investment Act (previously known as “Omnibus Act”) presented to Parliament in February 2020.

The Asian Development Bank has hired JC&A to develop executable recommendations and and prepare an implementation action plan to undertake the review of all businesses licenses according to risk-based criteria.

The project will be based on 3 interrelated activities:

  1. Undertake a general appraisal of government capacities to design and implement good quality licenses and permits based on international good practices
  2. Participate to a series of meetings with key decision makers to design a Policy Concept for risk-based licensing program based on recommendations and policy options adjusted to Indonesia.
  3. Prepare a Policy Proposal and an implementation Action Plan to present and discuss the report and building a political constituency for reform.

Asian Development Bank, 2020.

Asian Regional: Implementing the ASEAN Guidelines on Good Regulation Practices: cross-country baseline and raising awareness initiative

ASEAN countries are moving to adopt Good Regulation Practices (GRP) joining the mainstream of global governance, embedding an evidence-based style of decision making into administrative and political processes. In 2019, the ASEAN Governing Body representing the 10 State Member endorsed the ASEAN Guidelines on Good Regulatory Practices (GRP). This document intends to help all State Members to improve their regulatory practices when developing World Trade Organization technical regulations.

As a driver for the Guidelines implementation the ASEAN Consultative Committee on Standards and Quality (ACCSQ) asked in May 2020 Physikalisch-Technische Bundesanstalt (PTB) and Jacobs, Cordova & Associates (JC&A) to launch a two-year initiative with two components:

  1. Undertake a survey of the Member State adoption of the best practices signaled in the Guidelines by all ASEAN regulators. This stock taking will establish a baseline which will help countries and ASEAN as a group to monitor progress in adopting the Guidelines and detect regional innovations and good practices.
  2. Organize a series of capacity building events to introduce and promote the GRP Guidelines in ASEAN developing countries and, for some of them, provide additional advice on its implementation.

Asian Development Bank, 2020–2021.