Recovering the Economy, DKI Jakarta Expedites Building Permits to 57 Days from 360 Days

The Governor of DKI Jakarta Province, Anies Baswedan, stipulated Governor Regulation No. 118/2020 on Space Utilization Permits to accelerate building permits and encourage the stretching of the property sector, as one of the sectors that has multiplier effects on economic recovery due to the COVID-19 pandemic.

"We simplify and speed up the licensing process from 360 days to 57 working days for public buildings," Assistant for Economy and Finance of the Jakarta Provincial Secretariat, Sri Haryati, said in a press conference on Monday, February 8, 2021.

Sri added, for residential buildings, it will be even faster, namely 14 working days.

He said this effort was made because the Jakarta Provincial Government believes that the property industry can boost economic recovery during the pandemic. The property sector has the ability to absorb labor on a large scale, can increase regional income, bring in investment and has long-term business characteristics.

"Therefore, we collaborate with experts and practitioners to get input. Thus, producing licensing regulations that are simpler and more effective but still with the principle of prudence," Sri said.

Sri said, in addition to being faster, this regulation will be the basis for a more concise, organized and information technology-based licensing flow.

"This effort is part of the Universal Economic Recovery Policy Package which is the direction of the Governor of DKI Jakarta Province, Anies Baswedan, so that the economy in all sectors and layers of society can revive while overcoming the COVID-19 pandemic problem," Sri added.

In 2019, the construction and real estate industry contributed to Jakarta's economy by 17.61 percent. In 2018, the property sector also absorbed 425 thousand workers in Jakarta.

The construction and real estate industries in 2019 also contributed to DKI Jakarta's Domestic Investment of 23.9 percent or equivalent to Rp 14.8 trillion. The value of Foreign Investment from the two industries was around 28.3 percent or equivalent to Rp 17.5 trillion.

Executive Director of the Jakarta Property Institute (JPI), Wendy Haryanto, appreciated the Jakarta Provincial Government's efforts to collaborate with experts and practitioners in issuing this Governor Regulation.

"The acceleration and simplification of licensing is the right form of non-financial stimulus for the property industry so that it can not only survive but also thrive during this pandemic," he said.

BPS: Jakarta in Figures 2020

Wendy added that effective licensing will have a domino effect, such as increasing foreign direct of investment (FDI) entering Jakarta and will increase Jakarta's competitiveness.

"This will also have a long-term impact in efforts to accelerate the fulfillment of affordable housing needs in Jakarta, which is also one of JPI's focuses," added Wendy.

He hopes that there will be further collaborations between the government, experts and practitioners to create more implementable regulations.

Architect Steve J Manahampi also welcomed the issuance of this Governor Regulation. "The role of licensing is vital in the construction and property services industry. It not only directly affects both industries but also the supporting supply chain such as architects and other professionals," he said.

He added that a fast, efficient and easy licensing process will have a very positive impact on architects in the planning process so that it is in accordance with the targeted time.

"I hope this Pergub will also be followed by an increase in the capacity of human resources related to licensing services. So that the breakthrough that the Governor wants can be felt down to the service counter," said Steve.