Proposal to Revoke Five Business Permits in Indonesia

By Tanita Dhiyaan Rahmani On March 16, 2016, Indonesian President Joko Widodo announced a plan to simplify business licensing in Indonesia by revoking five existing business permits issued at the regional level. These five business permits are:

• Building Location Permit (Surat Izin Tempat Usaha): A permit for individuals and legal entities to establish a place of business that is in accord with the required spatial layout in the framework of capital investment. This permit is currently regulated by each region through regional regulations.
• Location Permit (Izin Lokasi). A permit for a company to obtain the required land for its capital investment. This permit is currently regulated under Minister of Agrarian Affairs and Spatial Layout/Head of the National Land Agency Regulation Number 5 of 2015 regarding Location Permit.
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