Imam Muzakir, Jakarta – The government will remove the requirement to secure construction permit for new buildings in an attempt to improve investment climate and enhance economic growth.

The government will instead increase efforts to audit existing buildings and enforce the country's zoning and building codes.

"The licensing [system] so far has been abused to commit violations. A permit would be given for a 400-square-meter building, then the developer would build an 800-square-meter building, but does anyone care?" Sofyan Djalil, the Agrarian and Spatial Planning Minister and the head of the National Land Agency, said on Wednesday.

Dropping the building construction permit, known as the IMB, would remove a rule which had been considered a hindrance by the property industry.

The World Bank's Ease of Doing Business study estimates it takes 42 days and more than Rp 68 million ($4,850) for a company to apply for a building permit for a 1,300-square-meter, two-story warehouse in Jakarta.

It takes 30 days and $860 to apply for the license to build a similar warehouse in Kuala Lumpur.

The World Bank study estimates that, in total, a company needs 191 days to clear all the permits, aside from the IMB, to build a warehouse in Jakarta. Kuala Lumpur only needs 54 days.

Sofyan said the government would also reduce the number of procedures and licenses needed for new buildings. The government will instead increase the number of supervisors to force developers to comply with building and zoning standards.

"The paradigm would shift. That's the most important. Permission is not too necessary anymore, except for things that are very limited," he said.

"What's more important now is the maintenance of standards. If you want to build a building, then go ahead, but if you don't meet the standards, we will dismantle it. So, be responsible," Sofyan said.

Sofyan's comments came just days after President Joko "Jokowi" Widodo instructed his ministries to cull unnecessary regulations that hinder the country's investment climate.

Sofyan said the government would take its efforts further by introducing an omnibus bill that will annul previous laws and regulations deemed burdensome to investment.

"This means that in the future if the rules are considered to be burdensome, then the president will be able to issue an executive order to override the rules and remove obstacles in the investment process," he said.

Source: https://jakartaglobe.id/context/govt-to-cull-muchmaligned-building-permits