Dozens of messages came in, both via WhatsApp and delivered directly to Shinta Kamdani, Chairperson of the Indonesian Employers Association (Apindo). The content is repetitive, coming from all over Indonesia: complaints about legal certainty.

"We consistently receive complaints about the issue of legal uncertainty from business actors," Shinta told Suar through a written statement (31/07).

From building permits, AMDAL documents, to unsynchronized central and local regulations. Although the business sectors, scales, and regions vary, the pattern of complaints remains the same: unpredictable licensing processes and policies that not only slow down, but also disrupt the business climate.

Last June, Apindo conducted a survey of more than 100 companies in 18 provinces. The results confirmed this concern: 72% of respondents felt that the required documents were too many, 65% admitted that they were forced to use third-party services, which actually complicated and added costs, and 54% highlighted the length of the recommendation process, technical obstacles in the OSS system, and incompatibility of central and regional regulations.

"For AMDAL documents alone, the majority of companies can spend more than a year. Even though this is only the initial stage," said Shinta. Complaints that once appeared sporadically have now become a systemic pattern of problems.

More than Just a Pile of Documents

For businesses, uncertainty is not just paperwork. It means hidden costs: stalled expansion plans, overseas relocation, or increased product prices due to lengthy processes and additional costs.

"Business always grows on risk calculation. But if the rules themselves are not consistent, it is very difficult to plan," said Shinta.

A number of reform efforts have actually been made by the government. The revision of PP 5/2021 to PP 28/2025 strengthens the OSS-RBA system, the implementation ofservice level agreements (SLAs) for service time limits, to the positive fictitious principle: if a permit application is not answered within a certain period of time, it is considered automatically valid. However, the spirit of reform at the center is often still hindered by the reality on the ground.

"Local regulations must also be adjusted. If only the main policy is good, but the derivatives are not synchronized, the problem remains," said Shinta.

For this reason, Apindo encourages the government to not only focus on procedural reforms, but also evaluate the impact of new policies on the business world through regulatory impact assessment (RIA), and reduce the pile of rules that collide with each other, a phenomenon often called regulatory overload.

A view from Singapore: Consistency as a Selling Point

For Suryopratomo, the Indonesian Ambassador to Singapore, the success of this neighboring country is no mere coincidence, but the result of a consistent and predictable regulatory culture. "The Singapore government rarely makes sudden policy changes," Suryopratomo told Suar (30/07).

Every strategic policy revision is always preceded by a public consultation process, regulatory impact assessment, and multi-year planning. "That gives space for businesses, both local and foreign, to adapt and strategize their business," he added.

In addition to policy certainty, there is one important principle that is upheld: regulatory simplicity. The licensing process is largely digitalized, using single window systems such as BizFile and GoBusiness.

"Even for foreign investors, company establishment can be completed in just a matter of hours," Suryopratomo said.

All legal documents, rules, and incentives are available transparently, in English, so that they can be directly accessed by potential investors. "The basic principle is: don't make unnecessary regulations," he explains. Singapore prefers not to regulate things that are not important rather than making rules that end up complicating things.

Beyond regulation, there are also supporting factors that are no less important. Political and legal stability, a bureaucracy that lacks multiple interpretations, and a rule of law that is strictly enforced. Not to mention, a competitive tax system, skilled human resources, and ease of technology adoption and institutional reform.

"Singapore's business ecosystem is closely connected to the world's economic centers. That also gives it more appeal," says Suryopratomo. This makes Singapore a regional benchmark in ease of doing business-not because the rules are always light, but because the process is made transparent, consistent and fair.

Suryopratomo admitted that this does not mean that Indonesia should copy the Singapore model. "Every country has its own context and needs," he said.

However, basic principles such as regulatory consistency, information disclosure, and impact-based policy evaluation remain relevant. "Indonesia has made a lot of progress, such as digitizing OSS services, structural reforms, and reviewing regulations," Suryopratomo said. "But this journey still needs consistency and cross-party involvement: central and local governments, and of course businesses."

The most important lesson, said Suryopratomo, is that legal certainty is not just a matter of speed or number of documents, but rather a matter of clear process certainty, adaptation space for business actors, and the courage of the government to remove unnecessary regulations.

"Because in the end, business confidence grows not from promises, but from policy consistency in the field," he concluded.

Mapping the Problem, Offering Solutions

In the near future, Apindo's National Work Meeting (Rakerkonas) will be an important venue to discuss this issue. The annual forum brings together business people from UMKM to large companies, with the government and economists. The goal is not only to hear complaints, but also to map out strategic solutions.

Bringing together business people with experts and policy makers such as the Coordinating Minister for the Economy, Coordinating Minister for Infrastructure and Regional Development, Minister of Manpower, Minister of UMKM, and Minister of Ecraf will be the main agenda. "Later, there will be Strategic Recommendations, input points from the business world for the government to improve the investment ecosystem," said Shinta.

Apindo hopes that the discussion on legal certainty does not only focus on licensing procedures, but also touches on the substance of the policy, including consistency of implementation between the center and the regions. "Legal certainty is not a matter of one permit being issued quickly, but how all processes are transparent, clear, and predictable," he added.

Indonesia has a huge market potential, productive demographics, and an ongoing digital transformation. But all of that requires a foundation: regulatory certainty. "Legal certainty is the foundation. Without it, no matter how great our potential is, there will always be immeasurable business risks," Shinta concluded.

Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan P Roeslani understands the importance of legal and regulatory certainty to attract investment. Therefore, the government is taking three steps to keep foreign investment running well in the country.

The first step taken by the government is to reform regulations to provide certainty for investors. In this case, the government revised Government Regulation (PP) Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

The second step is to improve the quality of human resources (HR). With human resources, Indonesia can have a higher attraction to investment. This is because investors always question the readiness of human resources when starting an investment in a country.

Third, increase interaction between the government and investors. Rosan said President Prabowo Subianto always holds meetings with foreign investors on the sidelines of his overseas visits. The government is also optimizing the performance of Danantara Indonesia to increase the attraction of foreign investors to Indonesia.