The Hazards from Automatic Investment Permit

The House of Representatives has included 50 bills and revised law in the National Legislation Program (Prolegnas). In the plenary meeting on Wednesday, January 22, 2020, the chairman of House’s legislation body, Supratman Andi Agtas, revealed that the Prolegnas would consist of three Omnibus Laws: the law on the job creation, taxation, and new capital.

The Omnibus Law on job creation is the first law issued by the government and the House since it aims to attract investors. One of the priority clusters is the articles on the ease of doing business, offering various incentives for the investors. One of them is related to the Service Level Agreement (SLA) to obtain a permit through an automatic system.

The central government and regional administration will handle the system, called Online Single Submission, and must process the permit for a limited time. If any of them fails to meet the deadline, the applicant or investors can automatically and legally commence its business. The scheme is valid for every type of investment, whether low, medium, or high risk.