The government of Indonesia is looking to hasten the construction of seaports in the country by streamlining the process of securing permits, a move that supports national efforts to make the country a maritime axis.
The Capital Investment Coordinating Board, or BKPM, said it intends to cut the number of permits and licenses required in constructing seaports in the country.
BKPM added it it will coordinate with local ministries and agencies to find out which processes can be dropped to speed up port construction.
The board set up a one-stop integrated service (OSS) in January this year as a way to make it easier for foreign capitalists to invest in the country. The OSS is an integrated service platform between BKPM and some agencies and financial institutions that is intended to provide quick, simple, and transparent license services.
Essentially, the OSS is a response to the instructions of President Joko Widodo to create a business-friendly bureaucracy by eliminating costly red tape for entrepreneurs and investors.
BKPM did not go into details on how much shorter the permit application process will be, but earlier this year it was able to shorten the time for securing permits for power plant projects to 256 days from 923 days.
To erect port or power plant facilities in the country, investors must apply for permits from the central administration, including principal permits, environmental permits, and land permits.
Once all the national permits have been obtained, companies will then have to approach local government units for the release of building permits, proof of domicile, disruptions permits, and other licenses.
For now, BKPM can only help expedite the release of permits from the central government.
Widodo last year unveiled an ambitious plan to build 24 ports over the next five years in a drive to make the archipelago a maritime hub.
Photo: Rezwan
