Perizinan Berusaha

Introduction

Perizinan berusaha refers to the formal legal process that grants legalities to business actors to initiate and operate their businesses and activities within the regulatory framework of Indonesia. The legal framework surrounding perizinan berusaha has been reformed significantly with the introduction of Peraturan Pemerintah Republik Indonesia Nomor 5 Tahun 2021 Tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko, which was implemented to align with Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja. This regulation aims to streamline business licensing procedures by adopting a risk-based approach (Perizinan Berusaha Berbasis Risiko).

Risk-Based Approach to Business Licensing

The central tenet of the 2021 regulation on business licensing is the risk-based approach, which categorizes business activities based on their risk level: low, medium, or high. The level of risk determines the type of license a business actor must obtain. The aim is to simplify the licensing process for lower-risk businesses while ensuring stricter oversight and compliance for higher-risk activities.

Key Definitions

  1. Perizinan Berusaha: Legalities granted to business actors for starting and operating their businesses (Article 1).
  2. Perizinan Berusaha Berbasis Risiko: Business licensing based on the level of risk inherent in the business activities (Article 1).
  3. Risiko: The potential for injury or loss from a hazard or a combination of possibilities and consequences of hazards (Article 1).
  4. Nomor Induk Berusaha (NIB): A registration number that acts as both the registration proof and the business actor’s identity in conducting their business (Article 1).
  5. Sertifikat Standar: A certificate declaring compliance with specific standards for business activities (Article 1).
  6. Izin: Formal approval granted by central or regional governments that businesses must fulfill before starting operations (Article 1).

Scope and Implementation

Article 2 of PP No. 5/2021 outlines the key areas covered under risk-based licensing, which include:

Risk Assessment

The government classifies businesses into risk categories based on comprehensive risk assessments. Article 7 details how risk levels are determined through professional evaluations, which assess factors such as health, safety, environmental impact, and resource management. These assessments ensure that licensing requirements are proportional to the risks involved.

Perizinan Berusaha Untuk Menunjang Kegiatan Usaha

In addition to the standard business licenses, certain business activities may require additional licenses known as Perizinan Berusaha Untuk Menunjang Kegiatan Usaha (Article 20). These are supplementary licenses necessary for supporting business operations, particularly during the operational and commercial phases.

Online Single Submission (OSS) System

A core element of PP No. 5/2021 is the OSS system, as described in Article 1 and Article 6. The OSS platform enables businesses to apply for licenses electronically, facilitating faster and more efficient processing of applications. The system also integrates various governmental bodies to streamline coordination in issuing licenses. This system represents a critical development in Indonesia’s efforts to digitize and simplify business registration and licensing processes.

Supervision and Compliance

The law emphasizes continuous supervision and compliance for businesses operating under any level of risk. Government agencies are required to monitor business activities to ensure adherence to the required standards and regulations. This includes oversight by the relevant ministries, regional governors, and sectoral authorities (Article 23).

Analysis and Impact

The introduction of risk-based business licensing is a transformative step in enhancing Indonesia’s business climate. By simplifying the requirements for low-risk businesses, the government seeks to encourage entrepreneurship, particularly in small and medium enterprises (SMEs), while maintaining strict controls over industries that pose greater risks to public health, safety, and the environment. The OSS system reduces bureaucratic delays, which had been a significant barrier to starting and expanding businesses in Indonesia.

Revoked Regulations

Perizinan Berusaha Berbasis Risiko in PP No. 5/2021 explicitly revokes previous regulations on business licensing as per the "Ketentuan Penutup" section of the regulation. These repeals are part of a broader initiative to harmonize Indonesia’s regulatory framework under the Omnibus Law (Cipta Kerja), streamlining hundreds of older, fragmented regulations into a more cohesive structure.

Conclusion

Perizinan Berusaha is a cornerstone of Indonesia’s efforts to reform its business environment, enhancing transparency, efficiency, and accountability in the licensing process. The risk-based approach tailors the regulatory burden to the potential risks associated with different types of business activities, allowing for more efficient governance and encouraging investment. The introduction of the OSS system further improves business accessibility by digitizing the licensing process. The cumulative impact is expected to boost Indonesia’s competitiveness, particularly in attracting foreign direct investment (FDI).

Tags: #businesslicensing #riskmanagement #OSS #investment #IndonesianLaw

Disclaimer: This content is AI-generated with minimal human intervention.