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To Realize Investment Conducively, Regional Government Should Supervise Mill(s)



Doc. InfoSAWIT/Ilustration of palm oil mill
To Realize Investment Conducively, Regional Government Should Supervise Mill(s)

InfoSAWIT, JAKARTA – In the recent days, General Director of Plantation Ministry of Agricuture published Circulars Number 245/KB.410/E/03/2024 that focused on supervising business permit in risk base for Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) 10431, such as, crude palm oil (CPO) industries. The circulars would be the follow up to implement the previous regulation in Undang-Undang Cipta Kerja and other related regulations.

The circulars referred to the Laws Number 2 / 2022 about Cipta Kerja that was substituted to be Laws Number 6 / 2023 about the Decision of Government Regulation in lieu of Laws Number 2 / 2022 about Cipta Kerja to be laws. One main goal of the regulation is about to simplify permit of business through the implementation of permit of business in risk – base.

As the follow up, the Government Regulation Number 5 / 2021 was published about the Implementation of Permit of Business in Risk – Base. The goal is about to realize the regulation in Chapter 12 Undang-Undang Cipta Kerja to accelerate and escalate investment and ease business process for stakeholders.

The government itself implements online single submission (OSS) system in risk-based approach (RBA). The system would integrate every proposal to get permit of business, starting from the proposal, verification and supervision. By OSS RBA, it is hoped that every process would be more efficient and transparent, delivering easiess for stakeholders to run theirs.

The circular was signed by General Director of Plantation, Andi Nur Alam Syah in April 2024. It was about to deliver guidelines for governor and regent/mayor to examine, and publish permit in KBLI 10431. This would create more conducive investment climate in CPO industries.

“To accelerate and escalate investment and business, and ease every stakeholder, the government implements online single submission (OSS) risk based aproach (RBA). Every process to get business permit, verification, and supervision would be integrated in the system,” the circular noted, as InfoSAWIT got, Wednesday (15/5/2024).

Besides delivering guidelines, the circular emphasized the obligation for the governor, regent/mayor to supervise RBA permit according to their authority. The effective supervision would confirm that every permit would be obeyed so that it would escalate not only obedience of law but support sustainability and develop CPO industries in Indonesia. (T2)


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