Economy Recovery, Jakarta Accelerates Building Permits to 57 Days from 360 Days

We're simplifying and accelerating the permit process from 360 days to 57 working days for public buildings

Jakarta Governor, Anies Baswedan, issued Gubernatorial Regulation number 118/2020 on Space Utilization Permits to accelerate building permits and encourage the property sector, as one of the sectors that has multiplier effects on economic recovery due to the COVID-19 outbreak.

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"We're simplifying and accelerating the permit process from 360 days to 57 working days for public buildings," expressed Assistant for City's Economic and Finance Division, Sri Haryati, in a press conference, Monday (2/8), as quoted by Jakarta PPID's press release.

She added, residential buildings would be even faster, namely 14 working days. It was done, as the Jakarta administration believed that the property industry could boost economic recovery during the pandemic. The property sector had the ability to absorb labor on a large scale, could increase regional income, bring in investment and had long-term business characteristics.

"Therefore we are collaborating with experts and practitioners for input. Thus permit regulations are simpler and more effective but still apply the principle of prudence," she explained.

Besides being faster, she continued, the regulation would form the basis of a streamlined, organized and information technology-based licensing flow.

"This effort is part of the Universal Economic Recovery Policy Package, which is the Governor's direction in order to recover economy in all sectors and levels of society while overcoming the problem of the pandemic," he uttered.

In 2019, the construction and real estate industries contributed 17.61 percent to the economy of Jakarta. In 2018, the property sector also absorbed 425,000 workers in Jakarta.

Last year the construction and real estate industries also contributed 23.9 percent of Jakarta's Domestic Investment or the equivalent of Rp 14.8 trillion. As for the value of foreign investment from the two industries was around 28.3 percent or equivalent to Rp 17.5 trillion.

Jakarta Property Institute (JPI) Executive Director Wendy Haryanto, appreciated the city's efforts to collaborate with experts and practitioners in the issuance of the regulation.

"Permit acceleration and simplification is the right form of non-financial stimulus for the property industry thus it can't only survive but also thrive amid the pandemic," he exclaimed.

She added that effective permit would have a domino effect, such as an increase in foreign direct of investment (FDI) entering Jakarta and would increase Jakarta's competitiveness.

"It also has a long-term impact on efforts to accelerate the fulfillment of affordable housing needs in Jakarta, which is also one of JPI's focuses," she added.

Hopefully, there would be further collaborations between the government, experts and practitioners in a bid to create more implementable regulations.

Architect Steve J Manahampi also welcomed the issuance of the regulation.

"The role of permit is very vital in the construction and property services industry. It doesn't only affect the two industries but also the supply chain supporters such as architects and other professional experts," he explained.

He added that a fast, efficient and easy licensing process would have a very positive impact on architects in the planning process, so it was according to the targeted time.

"My hope is the regulation will also be followed by an increase in the capacity of human resources related to permit services. So, the breakthrough that wanted could be felt up to the service counter," he closed.