Finance Minister Purbaya Yudhi Sadewa has placed Indonesia’s business permit regulations under close review following mounting complaints from business associations. The minister recently met with various entrepreneurs at the Ministry of Finance in Central Jakarta to discuss the challenges faced by businesses and explore ways to improve the overall business environment.
“Yes, we discussed their business conditions and how to make improvements moving forward. I asked for their input,” said Purbaya after the meeting on Tuesday, October 14, 2025 as reported by Detik.com. Entrepreneurs shared multiple concerns, with one of the most pressing issues being the excessive number of permits required to operate legally.
Entrepreneurs Complain About Excessive Business Permits
Entrepreneurs across industries voiced frustration over the complex and time-consuming process of obtaining permits. Some businesses reportedly need up to 99 different licenses, creating significant obstacles to efficiency and growth. “There are many complaints, but they’re quite common. The excessive permits make doing business messy. Local governments issue too many permits and various requirements,” Purbaya stated.
He added that the situation has become burdensome for entrepreneurs who want to expand or innovate. “I asked one of them how many permits they had—99, right? That’s too many. We’ll see which ones can be reduced,” he explained.
Several business associations attended the discussion, including the Indonesian Employers Association (APINDO), the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI), the Indonesian Retail Entrepreneurs Association (Aprindo), and the Indonesian Shopping Center Tenants and Retailers Association (HIPPINDO). Their members have long urged the government to simplify procedures to foster a more competitive environment.\
Government to Streamline Business Permit Regulations
Purbaya confirmed that the government is taking concrete steps to review and simplify existing regulations. The Ministry of Finance will coordinate with an inter-ministerial working group (Pokja K/L) to evaluate redundant or outdated permit requirements. These efforts aim to reduce bureaucracy and make it easier for entrepreneurs to conduct business across regions.
The review aligns with Indonesia’s ongoing commitment to improve its ease of doing business. Simplifying business permit regulations will not only reduce administrative burdens but also strengthen investor confidence. Purbaya emphasized that the goal is to build a transparent and efficient regulatory system that supports business growth rather than restricts it.
Cross-Ministerial Coordination to Improve Business Environment
The government’s reform efforts involve collaboration between several ministries, local governments, and private sector associations. By aligning policies and eliminating overlapping regulations, the government hopes to create a more unified business framework. These coordinated measures are expected to accelerate Indonesia’s economic recovery and attract more domestic and foreign investment.
Purbaya’s proactive approach reflects a broader national strategy to enhance the ease of doing business. His ministry intends to identify which sectors require the most urgent support, ensuring that policy reforms directly address existing pain points in the business community.
Government Business Stimulus Strengthens Reform Efforts
In addition to regulatory reform, the government has already introduced various stimulus programs to support business recovery. These initiatives provide financial relief and encourage new investment, complementing efforts to simplify business regulations.
“Now that the stimulus is in place, I hope by the end of the year the situation will improve. From there, I’ll assess who needs additional support. The current incentives should be sufficient,” Purbaya said. His optimism underscores the government’s confidence that these measures will create visible progress before year-end.
Together, these steps show the government’s commitment to fostering a fair, transparent, and competitive business environment. Simplifying permits and improving coordination across agencies will make it easier for entrepreneurs to thrive and contribute to national growth.
Simpler Permits, Stronger Business Future
The Finance Ministry’s focus on reforming business permit regulations marks a positive step toward improving Indonesia’s economic landscape. By cutting unnecessary red tape and maintaining transparent processes, the government aims to build a system that empowers businesses to grow efficiently.
As Purbaya and his team continue to streamline procedures, entrepreneurs can look forward to a more predictable and supportive regulatory environment—one that strengthens confidence, reduces costs, and drives Indonesia’s long-term economic resilience.
Source: finance.detik.com
Image: Mohammad Yudha Prasetya
