On 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 consisted of reviewing and reforming all licenses and permits considered unfavorable for investors and businesses, particularly integrating a risk-based approach into all licenses. The new policy was embedded in the Investment Act (previously known as the “Omnibus Act”) presented to Parliament in February 2020.
ADB hired JC&A to develop executable recommendations and prepare an implementation action plan to review all business licenses according to risk-based criteria.
The project was based on three interrelated activities:
- Undertake a general appraisal of government capacities to design and implement good quality licenses and permits based on good international practices.
- Participate in meetings with key decision makers to design a Policy Concept for the risk-based licensing program based on recommendations and policy options adjusted to Indonesia.
- Prepare a Policy Proposal and an implementation Action Plan to present and discuss the report and build a political constituency for reform.
Indonesia, the Asian Development Bank, 2020
