The Indonesian Ministry of Investment is revising three key regulations under Government Regulation No. 5 of 2021 on Risk-Based Business Licensing. Deputy Minister Todotua Pasaribu stated that the revisions aim to streamline the electronic risk-based licensing system, improve licensing services, and enhance supervision. These efforts are expected to attract more investment and support the government’s ambitious target of achieving 8% economic growth by 2029. Last year, Indonesia reportedly lost up to IDR 2,000 trillion in potential investment due to licensing inefficiencies and overlapping policies.
Todotua emphasized that simplifying business licensing is essential for creating a conducive investment climate. To reach the 2029 growth target, domestic investment realization must hit IDR 13,000 trillion—significantly higher than the IDR 9,000 trillion achieved over the past decade. The revised regulations are designed not only to accelerate the licensing process but also to involve business actors in refining future investment policies.
