This study aims to examine whether environmental permits are an inhibiting factor in the implementation of foreign investment in the regions, as well as efforts made by local governments to overcome obstacles to obtaining environmental permits to ensure the ease of business licensing for foreign investors. The method used is normative legal research with a legislative and normative juridical approach, which examines regulations, legal doctrines, and government policies related to environmental licensing and foreign investment at the regional level. The results show that the complicated environmental licensing process, complicated bureaucracy, unsynchronized regulations between the central and regional levels, and legal uncertainty are the main obstacles for foreign investors in realizing their investments. Local governments have made various strategic efforts, such as simplifying licensing procedures through a one-stop integrated service system (PTSP) and Online Single Submission (OSS), increasing human resource capacity, harmonizing regulations, and improving cross-agency coordination. However, implementation challenges remain related to digital infrastructure readiness and policy consistency. This study recommends strengthening synergies between central and local governments, increasing transparency, and developing effective monitoring mechanisms so that the environmental licensing process can run more efficiently and foreign investors feel more confident to apply for environmental licenses.
Copyrights © 2025