Micro Business

Ease of Investment During a Pandemic Through Regulation

The Investment Coordinating Board (BPKM) continues to try to restore the Indonesian economy due to the ongoing impact of the COVID-19 pandemic. The pandemic has caused most business sectors to collapse. However, BPKM itself sees new opportunities in which several sectors have experienced significant increases. Seeing these conditions, the Decree of the Head of BPKM No. 86 of 2020 concerning the Granting of Ease of Business Licensing for Certain Business Fields Related to the Handling of the COVID-19 Outbreak.

Ease of Licensing

To increase the realization of investment in Indonesia during the pandemic, several strategies have been implemented by BPKM. Some of these include accelerated licensing processes and are available in an online system. Since the beginning of the year, the number of applicants for Commercial Operational Permits (IOK) has increased.

In the April period, the IOK that has been entered into the data of the BPKM / BKPM Command Center Operational Command and Investment Command Center (KOPI) / BKPM Command Center reached 23,487 or an increase of 26.5% from the previous period. “We even issue around 4,000 to 5,000 business permits per day. The existence of a pandemic does not mean that entrepreneurs will cancel their intention to take care of licensing,” said the Head of BKPM, Bahlil Lahadalia.

According to him, BPKM has provided facilities and convenience to manage business permits. Currently, the Online Single Submission (OSS) system is also available so that business actors do not need to visit the BPKM office.

This OSS also helps business actors to communicate with stakeholders, store data on permits that have been obtained, report issues related to permits, and much more. Ball sees that this pandemic period is an important moment for business actors to focus on taking care of internal needs, such as taking care of all forms of required permits.

Increase Investment Flow

The strategy to facilitate the business licensing process during the pandemic is regulated in the Decree of the Head of BPKM No. 86 of 2020. This decision will come into effect from April 1, 2020, until the COVID-19 period is declared over. In the decree, BPKM decided to provide ease of business licensing in the form of:

  • reduction and/or easing of business licensing requirements;
  • acceleration of the business licensing process;
  • special assistance services.

The business fields that are entitled to obtain ease of business licensing during this pandemic are the medical device industry and the pharmaceutical industry.

“The Ministry of Health’s IOK applicants remain the highest since the COVID-19 pandemic,” said Bahl. It was recorded that there were 5,444 IOK applicants in April 2020, followed by the Ministry of Trade with as many as 2,718, the Food and Drug Supervisory Agency (BPOM) with 2,535, the Ministry of Energy and Mineral Resources (ESDM) with 1,793, and the Ministry of Transportation with 1,158 applicants.

BPKM makes easy investment during the pandemic a top priority. Ball revealed that manufacturers and distributors of medical devices as well as imports of raw materials were the focus of BPKM in increasing the supply of medical devices amid the pandemic while increasing investment activities in Indonesia. In addition, BPKM also helps medical device companies that already exist in Indonesia, including multinational companies.

BPKM will help producers and distributors to get convenience in distributing medical devices such as PPE, which are increasingly scarce due to limited basic materials. Investors and business owners certainly appreciate the agility of BPKM in facilitating health licensing and obstacles to importing raw materials. “We will also order other investors who produce ALKES. If there are obstacles, just report them to BPKM. We will help as soon as possible,” said Bahlil regarding the handling of the medical device business sector as an effort to facilitate investment during the pandemic.

Policy summary

Significant improvements related to business licensing started from the beginning of the enactment of the Decree of the Head of BPKM No. 86 of 2020 concerning the Granting of Ease of Business Licensing for Certain Business Fields Related to the Handling of the COVID-19 Outbreak. Although the realization of investment in the first quarter of 2020 is not as strong as the previous year, BPKM remains optimistic that investment will continue to increase and return to stability during this pandemic with the ease of managing permits.

Broadly speaking, the ease of investment during this pandemic can be realized by reducing business licensing requirements, accelerating the licensing process, and special assistance services for business entities engaged in the medical device industry and the pharmaceutical industry. It is hoped that this policy can be a motivation for the community to continue to be creative and innovative. “I invite young Indonesians, let’s be entrepreneurs so they can increase domestic investment.”

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