Local Government and Implementation of Business Licensing After the issuance of the Job Creation Law

M. Adil Muktafa, Ahmad Ainun Najib, Iman Jalaludin Rifa’i

Abstract


During President Joko Widodo's second term, the Indonesian government is committed to increasing the value of investment by removing barriers to investment. One of the main variables in realizing the government's will is to increase the value of the ease of doing business in Indonesia. The government realized this by issuing Law Number 11 of 2020 on Job Creation (Job Creation Law). Of the many sectors regulated by the Job Creation Law, one of the most prominent is the business licensing sector, where there have been changes in the implementation of business licensing services after the issuance of this Law. This research is a normative-empirical legal research that combines normative legal research methods with empirical legal research methods. The results found that since the issuance of the Job Creation Law, business licensing has been carried out in an Online Single Submission Risk Basd Approach managed by the OSS institution in this case, the Investment Coordinating Board or the Ministry of Investment. On the other hand, after the Job Creation Law issuance, local governments no longer have the authority to issue and revoke business licenses. This change besides having a positive impact because it provides convenience for business actors in issuing business licenses, in practice in the regions it creates problems between business actors and the community.

Keywords


Ease of doing business; Business Licensing; and Regional Government

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https://doi.org/10.24970/bhl.v7i1.298.




DOI: http://dx.doi.org/10.51825/yta.v4i1.24454

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