LEGAL IMPLICATIONS OF AUTOMATICALLY ISSUED PERMITS IN A RISK-BASED BUSINESS LICENSING SYSTEM

Abstract

This study aims to analyze and explain the risk-based business licensing process and the legal implications of licenses that are issued automatically in the risk-based business licensing system. This research used juridical-normative research methods with a statutory and conceptual approach. Based on the research results, the Job Creation Law divides business licensing based on the level of business risk and business scale. Business actors first register their business activities through O.S.S. to obtain the N.I.B. (Business Identification Number). The business licensing document for low-risk is the N.I.B., and for low to medium-risk, it is the N.I.B. and Standard Certificate, which are automatically issued after the business actor provides a self-declare. Business licensing documents with medium to high risk are the N.I.B. and Standard Certificate, while for high-risk are the N.I.B. and Permit. The Standard Certificate and Permit are issued after verification. The implications of the automatically issued N.I.B. and Standard Certificate as an Administrative Decision have eliminated the opportunity for government agencies or officials to make decisions and take actions in government administration. This results in confusion when determining the object of dispute against administrative lawsuits filed by the public whose interests are affected by the issuance of the N.I.B. and automatically issued Standard Certificates.