Risk-Based Business Licensing Supervision at The Investment and Services Office of Sekadau Regency

International Journal of Social Science and Human Research ISSN (print): 2644-0679, ISSN (online): 2644-0695 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijsshr/v8-i10-40, Impact factor8.007 Page No: 7879-7882 IJSSHR, Volume 08 Issue 10 October 2025 www.ijsshr.in Page 7879 Risk-Based Business Licensing Supervision at The Investment and Services Office of Sekadau Regency Henyanto Postgraduate Program of Public Administration, Faculty of Social and Political Sciences, Tanjungpura University ABSTRACT: The issue of this study was based on the implementation of supervision, which was not yet fully aligned with the OSS RBA (Online Single Submission Risk-Based Approach) mechanism. This was primarily due to the underutilization of digital tools supporting supervision, such as online reporting and monitoring systems, caused by limitations in information technology infrastructure. This study aimed to describe and analyze the implementation process of the risk-based business licensing supervision policy at the Investment and One-Stop Integrated Services Department (DPMPTSP) of Sekadau Regency, which was implemented through the stages of organization, interpretation, and application. This study also employed a descriptive research method with a qualitative approach and supported by interviews, observation, and documentations as the techniques of data collection. The results of this study revealed that in the organizational stage, the institutional structure and division of tasks had been adjusted to align with the risk-based business licensing policy; however, there remained a shortage of competent human resources. In the interpretation stage, the level of understanding of the new regulations varied among staff, which affected the effectiveness of implementation. Meanwhile, at the application stage, the implementation of the OSS RBA system continued to face technical challenges and a lack of assistance for business actors, particularly those operating on a small and medium scale. Therefore, the researcher suggests that human resource improvement, intensive socialization, and supporting system repair are still needed in order that riskbased licensing supervision can run well in Sekadau Regency. KEYWORDS: Risk-Based Business Licensing Supervision, Online Submission Sytem, Investment and Services Office INTRODUCTION The Investment Coordinating Board of the Republic of Indonesia (BKPMP RI) Regulation Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision was issued in an effort to improve the investment climate and streamline the business licensing process in Indonesia. To support ease of doing business, the Indonesian government is committed to simplifying and accelerating the licensing process. Prior to the issuance of this regulation, many entrepreneurs and potential investors faced various difficulties in fulfilling complex and time-consuming licensing requirements. The issuance of the Job Creation Law in 2020 marked a significant milestone in driving licensing system reform to create a more friendly and efficient business ecosystem. The Sekadau Regency Investment and One-Stop Integrated Services Agency (DPMPTSP) is closely aligned with efforts to increase efficiency, transparency, and ease in the licensing process, in accordance with national policy stipulated in BKPM Regulation Number 5 of 2021. Specifically, the implementation of this policy at the regency level involves several steps, challenges, and solutions related to its implementation. To this end, the Sekadau Regency DPMPTSP needs to conduct outreach to businesses and the public regarding the concept of risk-based licensing. This training aims to provide an understanding of business risk classification and how permit application procedures can be conducted more efficiently through a risk-based approach. The following is information on risk-based business licensing supervision for companies/business actors in Sekadau Regency in 2024, which can be seen in table 1.1 below. Table 1.1 shows that of the 10 companies/business actors subjected to risk-based business licensing supervision in Sekadau Regency in 2024, 6 (six) companies/business actors had problems, namely: 2 (two) CVs (Commanditaire Vennootscha), and 4 (four) PTs (Limited Liability Companies). The Sekadau Regency DPMPTSP in implementing its risk-based business licensing supervision policy still faces several major obstacles that impact the effectiveness of supervision. First, limited human resources (HR) for supervisors mean that supervision cannot optimally reach all business actors, especially in scattered and difficult-toreach areas. Second, business actors' low understanding of the OSS RBA system results in many business actors not fully understanding postlicensing obligations, such as fulfilling commitments and regular reporting. Third, suboptimal digital infrastructure, particularly in rural areas, also hampers the implementation of online supervision and data integration between the central and regional Risk-Based Business Licensing Supervision at The Investment and Services Office of Sekadau Regency IJSSHR, Volume 08 Issue 10 October 2025 www.ijsshr.in Page 7880 governments. Overall, these three challenges demonstrate that technical support, human resource capacity building, and digital and licensing literacy remain urgent needs for effective, accountable, and sustainable risk-based licensing oversight. Table 1.1 Risk-Based Business Licensing Supervision for Companies/Business Actors in Sekadau Regency in 2024 No Company/B usine ss Actor Project Compliance Assessment Technical compliance Administrat ion Decree of Compliance Problem 1 CV. Penanjung Island 15.00 compliance29.43 Baik (44.43) Ada 2 CV. Anugrah Lestari 40.40 22.95 Baik (63.35) Ada 3 CV. Sentosa Abadi 15.00 38.18 Baik (53.18) Tidak Ada 4 Koperasi Suak Payong Tiga 15.00 20.33 Baik (35.33) Tidak Ada 5 PT. BetuahAnugerah 15.00 38.88 Baik (53.88) Ada 6 PT. Sekadau Medika Jaya 15.00 24.35 Baik (39.35) Ada 7 PT. Sumatera Makmur Lestari 15.00 41.50 Baik (56.50) Ada 8 PT. Surya Deli 15.00 38.88 Baik (53.88) Tidak Ada 9 PT. Multi Duta Putra 15.00 17.18 Baik (32.18) Ada 10 PT. Agro Anugerah Lestari 42.20 39.58 Baik Sekali (81.78) Tidak Ada Sources: DPMPTSP Kabupaten Sekadau, Maret 2025 Jones' theory serves as the basis for this research, as the implementation of risk-based business licensing oversight policies can be analyzed through three main pillars, according to Charles O. Jones: organization, interpretation, and application. First, from an organizational perspective, policy implementation is largely determined by the readiness of institutional structures, resource availability, and inter-agency coordination. In areas such as Sekadau Regency, weaknesses in the formation of oversight teams and limited human resources are major obstacles to organization. METHOD This study uses a qualitative research method approach. This research method produces descriptive data in the form of written or spoken words from people and observable behavior (Moleong, 2010:3). The use of qualitative research methods in this study allows researchers to obtain previously unanticipated findings and can represent visible phenomena. According to Moleong, the data analysis stage occurs after the researcher has carefully completed the data analysis. The next step is to interpret the analysis results. Finally, the researcher draws a conclusion that summarizes the entire research process and makes recommendations. When interpreting the analysis results, several factors must be considered, including: the interpretation must not deviate from the analysis results, the interpretation must remain within the research framework, and the researcher must be ethically willing to disclose any difficulties and obstacles encountered during the research. RESULT AND DISCUSSION 1. Organizational Stage of Supervisory Policy The organizational stage is a key element in the policy implementation process, including the risk-based business licensing supervision policy. At this stage, implementing agencies, such as the Investment and One-Stop Integrated Service Agency (DPMPTSP), are required to establish an organizational structure, allocate tasks, and ensure adequate resources are available to ensure effective and efficient policy implementation. The organizational process is not without challenges, such as limited human resources, lack of technical understanding, and the need to adapt to new work systems and procedures. Therefore, an in-depth analysis is needed to determine how the DPMPTSP of Sekadau Regency organizes itself to respond to the demands of this policy, from forming work teams, developing standard operating procedures (SOPs), cross-sector coordination, to increasing staff capacity. An interview with the Coordinator of Licensing and Permit Numbers regarding the mechanism used in implementing supervision to differentiate between low-, medium-, and high-risk businesses stated: "The mechanism for differentiating business risk levels refers to the provisions of the OSS-RBA (Online Single Submission Risk-Based Approach) system managed by the central government. Risk assessment is based on three main components: potential danger from business activities, the scale of business activities, and the possibility of disruption to health, safety, the environment, and public order. Not all business actors understand this classification process, and errors often occur in data entry into the OSS. Furthermore, not all technical agencies have the human resources or supervisory systems ready to verify medium-, high-, and high-risk businesses." Risk-Based Business Licensing Supervision at The Investment and Services Office of Sekadau Regency IJSSHR, Volume 08 Issue 10 October 2025 www.ijsshr.in Page 7881 In response to this statement, it can be assumed that the risk-based business licensing supervision mechanism in Sekadau Regency refers to the OSS-RBA (Online Single Submission - Risk-Based Approach) system as the primary instrument for determining business risk levels. The classification of businesses as low, medium, or high risk is determined based on the business activity parameters inputted by the business actor, including the type of activity, business scale, and potential impact on the environment, health, safety, and public order. Field observations indicate that the division of tasks and authority in implementing business supervision is still not fully optimal. This is evident in the overlapping duties of several agencies or individuals involved in the supervision and development process. This results in a lack of effective coordination and the potential for confusion in the implementation of tasks in the field. Furthermore, many field officers must perform multiple functions due to limited human resources and expertise. This reduces the effectiveness of supervision due to an unbalanced workload. In carrying out their duties, not all parties use uniform guidelines or SOPs. This leads to differences in work methods among officers who are supposed to be performing the same function. 2. Interpretation/Understanding of Supervisory Policy The interpretation or understanding stage is a crucial phase in the policy implementation process, where implementers, both at the government and business levels, understand the intent, objectives, and mechanisms of the policy to be implemented. In the context of risk-based business licensing supervision policies, a proper understanding of the concept of risk, business classification, and supervision procedures is crucial for successful implementation in the field. The Sekadau Regency DPMPTSP, as the implementing agency in the region, must ensure that all personnel thoroughly understand this policy, not only from a regulatory perspective, but also from a technical and operational perspective. Based on an interview with the Head of the Sekadau Regency DPMPTSP regarding the strategy used to disseminate this policy to all work units, he stated: "We implement several structured dissemination strategies. First, we routinely hold monthly internal coordination meetings to discuss new policies and relevant regulatory changes. Second, we distribute written circulars and dissemination materials to each work unit, accompanied by explanations through internal communication groups such as WhatsApp and official email. Furthermore, we hold periodic workshops and technical guidance sessions, particularly for policies that are technical in nature or directly impact the service process. We involve resource persons from relevant agencies, both provincial and central, to strengthen employee understanding." This statement indicates that the Sekadau Regency DPMPTSP implements a systematic and ongoing policy dissemination strategy to ensure that all work units understand and implement the policy effectively. This strategy includes holding regular coordination meetings, distributing circulars and written policy materials, and utilizing internal communication media. Furthermore, workshops and technical guidance involving professional resource persons are conducted to deepen technical understanding. The agency has also formed change agent teams in each sector to ensure effective and equitable policy implementation across all work units. Field observations regarding the implementation of socialization and outreach programs indicate that some participants (business actors) feel the time allocated for socialization and outreach programs is insufficient to fully discuss the material. This results in several important topics not being fully explained, and participants feeling dissatisfied with the information received. The use of aids such as visual media, handouts, or brochures is often limited, making outreach programs less engaging or less effective in conveying messages. Furthermore, limited facilities, such as space or equipment, also hinder the smooth running of activities. Furthermore, in some locations, limited access to information, both technologically (e.g., limited internet access) and in terms of infrastructure, prevents outreach programs from reaching all stakeholders. This reduces the effectiveness of socialization and outreach programs. 3. Application/Implementation Stage of Supervisory Policy The application or implementation stage is the most crucial phase in the policy implementation process, as it is at this stage that the formulated and understood policies are tested in the field. In the context of risk-based business licensing supervision policies, policy implementation requires readiness from a technical, procedural, institutional, and human resource perspective. The Sekadau Regency Investment and One-Stop Integrated Services Agency (DPMPTSP) is the implementing agency. At the regional level, they are faced with the responsibility of classifying the risk levels of business activities, establishing oversight mechanisms, and ensuring business actors comply with permits appropriate to their risk levels. Based on an interview with the Coordinator of Investment Affairs, regarding the impact of the risk-based oversight system on the implementation of investment permits in Sekadau Regency, he stated: "In principle, the implementation of the risk-based oversight system is very helpful in directing our focus on businesses with higher risk levels. This makes supervision more focused and efficient, as we no longer treat all types of businesses with the same approach. However, the impact on the implementation of investment permits is also quite complex. On the one hand, this system encourages businesses to be more disciplined and compliant with regulations because they know there will be regular supervision based on their risk classification. However, on the other hand, many businesses, especially small and medium-sized businesses, still don't fully understand this system, resulting in confusion when applying for permits or when asked to fulfill additional requirements related to their risk classification.". Risk-Based Business Licensing Supervision at The Investment and Services Office of Sekadau Regency IJSSHR, Volume 08 Issue 10 October 2025 www.ijsshr.in Page 7882 The statement indicates that the implementation of a risk-based supervision system has had a positive impact on investment licensing in Sekadau Regency, particularly in terms of increasing the focus and efficiency of supervision of high-risk businesses. This system also encourages businesses to be more compliant with licensing requirements. However, its implementation still faces several obstacles, such as a lack of understanding among business actors, particularly MSMEs, regarding risk classification and supervision procedures, as well as technical constraints in integrating the OSS system between the central and regional governments, which impact the smoothness of the licensing process. Nevertheless, this system is considered to have the potential to create a more orderly and responsible investment climate in the long term. Field observations regarding the implementation of information and technology systems indicate that the application of information and technology systems in risk-based licensing supervision in Sekadau Regency shows significant potential to increase efficiency, transparency, and accuracy in the licensing process. However, its implementation still faces several obstacles that impact its effectiveness. The main obstacles identified include limited technological infrastructure, particularly in areas with limited internet access, and a lack of integration between central and regional information systems, which leads to data discrepancies and slows down the licensing process. CONCLUSIONS Based on the description of the research results and discussion presented in the previous chapter, the following conclusions can be drawn: 1. The organizational stage of implementing the risk-based business licensing supervision policy at the Sekadau Regency DPMPTSP still faces several challenges. For example, limited human resources, particularly in terms of quantity and technical capacity, remain a barrier to optimizing the supervisory function. Furthermore, coordination between departments and integration with the OSS-RBA (Online Single Submission – Risk-Based Approach) system have not been effective and efficient. 2. At the stage of interpreting or understanding the risk-based business licensing supervision policy, the Sekadau Regency DPMPTSP still faces challenges, particularly related to technical risk assessment and the use of the OSS-RBA system. This has resulted in suboptimal policy implementation, particularly in decision-making based on risk data. 3. The Sekadau Regency DPMPTSP (Directorate General of Taxes and Taxes) has implemented the risk-based business licensing supervision policy. However, its implementation still faces obstacles, such as limited technological infrastructure, a lack of competent human resources in the technical field of risk-based supervision, and minimal data integration between relevant agencies. Furthermore, business actors in the region do not yet fully understand the obligation to self-monitor or report through the OSS (Online Financial Reporting System). REFERENCES 1) Dwiyanto, Agus. 2016. Mewujudkan Good Governance melalui Pelayanan. 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