Indonesia and UK Strengthen Collaboration for Regulatory Reform and Digital Talent Development

Jakarta, INTI – In a significant milestone marking the final activity of the first five-year collaboration between the UK and Indonesian governments on regulatory reform, the Coordinating Ministry for Economic Affairs of Indonesia hosted the launch of the Risk-Based Supervision Guidelines and Educational Videos on Business Licensing, Product Safety, and Consumer Protection. This initiative is particularly aimed at micro and small enterprises (MSEs) in the consumer products sector. The event took place at the Coordinating Ministry's office on Wednesday, May 29, 2024.

During the event, Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, highlighted the government’s ongoing commitment to structural reforms, initiated through regulatory reforms by the enactment of the Omnibus Law on Job Creation and its implementing regulations.

“After reforming the regulations, we need practical implementation. This is where we align with OECD standards, which set global practices for all sectors. This collaboration with the British Embassy aligns perfectly with that goal, and we fully support continuing this partnership,” said Secretary Susiwijono.

To support the implementation of risk-based business licensing supervision, the Indonesian government launched a Pocketbook on Risk-Based Business Licensing Supervision for supervisors from various ministries, agencies, and local governments. This guide aims to coordinate and integrate field inspections for businesses, making supervision more efficient and effective, and providing support to help businesses grow.

The event also marked the launch of a series of educational videos on business licensing, product safety, consumer protection, and e-commerce. This effort aims to educate business actors, particularly MSEs, to help them progress, upgrade, and become more competitive. The short educational videos are tailored for MSEs, using simple concepts and language, and are disseminated through various social media platforms for easy access.

Secretary Susiwijono expressed his hope that the pocketbook and educational videos would enhance the implementation of risk-based business licensing supervision and significantly benefit MSEs, which are crucial pillars of the national economy.

The launch event included a talk show featuring experts from the UK’s Office for Product Safety and Standards (OPSS) to share best practices on risk-based supervision, product safety, and consumer protection. This activity is part of the bilateral cooperation between the two countries on regulatory reform that has been ongoing since 2019.

The first talk show focused on educating MSE actors about business licensing, product safety, and consumer protection, with speakers including Rahmadi, Assistant Deputy for Legal Facilitation and Business Consultation at the Ministry of Cooperatives and SMEs, and Herfan Brilianto Mursabdo, Assistant Deputy for Cooperatives and SMEs at the Coordinating Ministry for Economic Affairs. This was followed by the ceremonial launch of the Educational Videos on Business Licensing, Product Safety, and Consumer Protection.

The second talk show concentrated on strengthening the implementation of risk-based business licensing supervision, featuring speakers Ichsan Zulkarnaen, Assistant Deputy for Competitiveness Improvement at the Coordinating Ministry for Economic Affairs, and Rita, Director of Region II at the Ministry of Investment/BKPM. After the talk show, there was a ceremony for the launch of the Pocketbook on Risk-Based Business Licensing Supervision.

The aim of this event is to continue strengthening the implementation of ease of doing business and risk-based business licensing as part of Indonesia’s regulatory reforms initiated by the Omnibus Law on Job Creation and the implementation of risk-based business licensing through the Online Single Submission (OSS) system since 2021. It also marks the culmination of five years of cooperation between the Indonesian government, particularly the Coordinating Ministry for Economic Affairs, and the UK government, represented by the British Embassy in Jakarta.

"Great Britain has earned an international reputation as a conducive environment for starting and growing businesses due to its stable and predictable regulatory environment, competitive products, dynamic labor market, and robust financial sector. Regulation is crucial for the functioning of economies, and all countries need a predictable and consistently applied regulatory environment so businesses can invest with confidence and succeed," said Dominic Jermey CVO OBE, British Ambassador to Indonesia, who attended the event.

Ambassador Jermey also emphasized that the UK-Indonesia regulatory reform project aims to help business actors and companies achieve better outcomes. This year marks the 75th anniversary of diplomatic relations between the UK and Indonesia, and the success of this project has been made possible through strong partnerships. Over the past five years, the UK and Indonesia have worked closely to unlock the potential of MSEs, modernize approaches, reduce regulatory burdens, and streamline bureaucracy. The British Embassy is delighted to celebrate this outstanding achievement with its Indonesian partners.

The event was attended by representatives from various ministries and agencies in person, and local government representatives (Investment and One-Stop Integrated Service Offices, Cooperatives and SMEs Offices, Trade Offices, and Industry Offices across Indonesia) virtually. The event was organized by the Coordinating Ministry for Economic Affairs with support from the British Embassy in Jakarta.