Page 70 - e-KLIPING KETENAGAKERJAAN 25 FEBRUARI 2020

A number of requirements and licenses required to build buildings are slated to be
scrapped in the omnibus bill. The draft bill revokes around 26 articles, or almost
half, of Law 28/2002 on buildings.

Administrative requirements such as building permits (IMB), building ownership
status and licenses for land rights, to licenses for architecture and purpose of
buildings, among many others, stipulated in Law 28/22 are set to be cut in the
omnibus bill.

Licenses for safety, structural requirements, protection against fire and lightning
strikes, as well as requirements for health, air, lighting, sanitation, building
materials, building comfort, evacuation access and accessibility for disabled visitors
are also set to be revoked.

New business license regime

President Jokowi has strengthened the role of the Investment Coordinating Board
(BKPM) to streamline the issuing of all business licenses. The responsibility for
issuing business licenses is currently spread across many government institutions
and regional governments.

The omnibus bill on job creation strengthens existing regulations by simplifying the
business license procedure across almost all business sectors, including maritime
and fisheries, agriculture, forestry, energy and mineral resources, electricity and
industry. Further, trade, standardization including halal certification, infrastructure
and public housing, transportation, health, drugs and food, education and culture,
tourism, posts, telecommunications and broadcasting, security and defense are also
covered.

The bill amends prevailing laws related to the aforementioned business sectors,
aimed at easing the licensing process and doing business in the country. These new
arrangements take up most of the proposed omnibus bill.

Investment relaxation

The omnibus bill introduces a new list of sectors in which investment is prohibited,
while others will be opened and regulated in a separate Presidential Regulation
(Perpres). The Perpres will replace the notorious negative investment list (DNI) with
a new investment list for priority sectors, government officials have said.

Article 12 of Law No. 25/2007 will be amended to no longer include a stipulation
banning foreign investment in the negative investment list. Instead, business sectors
closed for investment, both domestic and foreign, are listed as follows: narcotics,
gambling, endangered flora and fauna, coral reefs, chemical weaponry, industrial
chemical and ozone-endangering chemical materials.

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