OMNIBUS LAW (VOL 2): THE INTRODUCTION OF RISK-BASED BUSINESS LICENSING CONCEPT

On 5 October 2020, the House of Representative passed the Job Creation Law (known
as “Omnibus Law”). The Omnibus Law is expected to enhance the ease of investment in
Indonesia through some amendments on various laws.

We have briefly discussed in our ARMA Update Volume 1 concerning risk-based

business licensing and the Omnibus Law in general, as well as its impact towards
the business climate in Indonesia. In this ARMA Update Volume 2, we will discuss
regarding a new concept in business licensing for business actors, by implementing
risk-based business licensing. In short, the risk-based Business Licensing means
that any business licensing issued to businessmen will be classified based on the
level of risk of the business activity.

ARMA Law provides this update regarding this topic both in English (here) and
Bahasa Indonesia (here).

In the meantime, our team has been continuously monitoring the Omnibus Law and its
implementing regulations. Until the date of the publication of this ARMA Update,
the Omnibus Law has not come into effect, as the President of Indonesia has not yet
signed the law. Thus, the entire analysis herein is based on the publicly available
final draft.

Omnibus Law (Vol 2):

Konsep Baru Perizinan Berusaha Berbasis Risiko

Pada 5 Oktober 2020, Dewan Perwakilan Rakyat telah mengesahkan Undang Undang Cipta
Kerja (atau yang dikenal dengan “Omnibus Law”). Dengan adanya Omnibus Law
diharapkan dapat memberikan kemudahan berinvestasi di Indonesia melalui perubahan
berbagai macam undang-undang.

Pada ARMA Update Volume 1 sebelumnya kami sudah memberikan gambaran singkat tentang
perizinan berusaha berbasis risiko dan Omnibus Law secara umum serta dampaknya bagi
bisnis di Indonesia. Pada Volume 2 kali ini, kami akan membahas mengenai suatu
konsep baru dalam perizinan usaha terhadap pelaku usaha, dengan menerapkan
perizinan berusaha berbasis risiko. Singkatnya, perizinan berusaha berbasis risiko
ini menjadikan setiap perizinan berusaha yang diberikan kepada pelaku usaha akan
diklasifikasikan berdasarkan tingkat risiko kegiatan usaha.

ARMA menyediakan update terkait bahasan ini dalam bahasa Inggris (di sini) dan
bahasa Indonesia (di sini).

Saat ini tim kami di ARMA Law terus memantau perkembangan Omnibus Law dan peraturan
pelaksananya. Hingga tanggal penerbitan ARMA Update ini, Omnibus Law belum berlaku
secara sah dikarenakan belum ditandatangani oleh Presiden Indonesia. Sehingga,
seluruh analisis ini didasarkan pada naskah Omnibus Law yang tersedia dalam
berbagai sumber.

JAKARTA, OCTOBER 16, 2020

ARMA