Najib, Ahmad Ainun
Faculty of Law, Diponegoro University

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Local Government Implementation of Business Licensing After the Issuance of the Job Creation Law Muktafa, M. Adil; Najib, Ahmad Ainun; Rifa’i, Iman Jalaludin
Yustisia Tirtayasa : Jurnal Tugas Akhir Vol. 4 No. 1 January-March 2024
Publisher : Fakultas Hukum Universitas Sultan Ageng Tirtayasa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51825/yta.v4i1.24454

Abstract

Indonesia's 2020 Job Creation Law represents a critical legislative effort to boost investment by streamlining business licensing. This research addresses the pressing need to evaluate the real-world implications of this policy shift. Using a mixed-methods legal approach, we analyze the legal framework and its practical application. The novelty of this study lies in its focus on the socio-legal consequences of the new centralized, risk-based Online Single Submission system (OSS-RBA), which now manages all business licensing. Our findings show that while the reform has eased administrative burdens for businesses, the centralization of power away from local governments has unintendedly led to conflicts between businesses and local communities. This study's contribution is a critical examination of this legal reform, arguing that its positive economic goals may be undermined by unresolved social tensions at the local level.