BKPM: Operational/Commercial License (IOK) during the First Semester 2020 is Dominated by Health Sector

Jakarta, 10 August 2020 – Applications for Operational/Commercial License (IOK) for the health sector became the most during Semester I (January-June) 2020 amounting to 16,286 out of a total of 112,862 IOK. Based on the records of the BKPM Investment Control and Command Center (Pusat KOPI), the IOK for the trade sector, which was usually in the first position, fell to second place with a total of 15,634 IOK. In the third position, there are 10,048 IOK from the Food and Drug Supervisory Agency (BPOM), then the energy and mineral resources sector totaling 8,547 IOK and the transportation sector totaling 6,458 IOK.

Licenses in the health sector have indeed increased during the COVID-19 pandemic. In April 2020, the number even doubled to 5,444 IOK from the previous 2,405 IOK in March 2020. The health sector IOK became the highest IOK for three consecutive months from April to June 2020.

Press Secretary of BKPM, Tina Talisa, conveyed the rapid application of health licenses during this pandemic as a form of high interest from business actors in responding to market demands for medical devices.

“The decline in license applications had occurred. The number of applications for Business Identification Number (NIB), Business License (IU), and IOK decreased in April and May 2020. However, from June until now, the number has increased again. This is a positive signal for national economic recovery,” said Tina.

The number of NIB applications through the Online Single Submission (OSS) system during Semester I 2020 was recorded at 328,409 applicants. After being in the lowest submission position of 28,562 NIB in May 2020, by June 2020 the value had doubled again to 57,058 NIB.

From January to June 2020, the most submitted NIB application with a percentage of 57.6 percent was micro and small business applications totaling 189,188 NIB.

“The published NIB data shows the extraordinary fighting power of micro and small businesses. The government must support business optimism with policies that make it easier. BKPM is there, providing full support for domestic as well as foreign investors, big or small. All of them are served. We are optimistic that in the future the Indonesian economy will revive soon,” added Tina.

Another license that was also listed by the BKPM Command Center was the Business License (IU), wherein Semester I 2020 there were 815,465 applicants. The number of IU applications in June 2020 has repeatedly increased to 124,055 applicants, from the previous dropping to 75,663 applicants in May 2020. (*)