The investment and business sector in Serang City, especially for small-scale, is still facing licensing constraints. Easy Business License in One Step, comes as solution that allows business licensing and education services to the community, will be conducted at the village and sub-district, instead of having to go to the Investment and One-Stop Office. It will cut bureaucratic red tape so that people with time constraints, lack of understanding, and people with disabilities can be served.
Innovation Summary
Innovation Overview
Business license legality is the starting point for start-up entrepreneurs, especially at the micro-scale, to gain market recognition, financial aid access, priority government assistance, partnerships from large businesses, and business standardization to compete. Therefore, it is necessary to provide access that is more accessible and easier for business actors, who have limitations to gain Business Identification Number (NIB) so that their businesses can be recognized and recorded by the government as a prelude to the appropriate policies will be taken. Hernando De Soto, 2006 Nobel Laureate in Economics, called it "a way to avoid the poverty trap."
To tackle this issue, the government has provided licensing services independently through www.oss.go.id, so that people can take care of their own licenses. And this innovation comes as a bridge between the root of the problem and the solution. Providing convenience for business actors who have time constraints, low understanding, and people with disabilities to access business licensing services at the nearest location. Excellent public services must be able to touch all circles.
This innovation not only seeks to bring services closer, but also as a forum for education and collaboration of youth, as well as encouraging the activation of urban villages and sub-districts as a mouthpiece and stimulus for improving the people's economy. The objective is to continue to increase the number of investors and the value of investment in Serang City, as well as the Public Satisfaction Index for the government. It has been implemented in Serang sub-district (February to March 2023). By the end of 2024, this program can reach the community in all sub-districts, in several urban villages where there are many business actors who are constrained in accessing licensing services.
Innovation Description
What Makes Your Project Innovative?
This innovation succeeded in encouraging an increase of NIB issued in just two months (in the pilot project sub-district). At that time, the program was able to attract as many as 611 applicants with 535 NIB's successfully issued. The result shows that it can be a solution to improve the legality of MSMEs in Serang City, which has the potential to be developed. The dominance of business actors, which reaches 22.4% in Serang City, should be facilitated through bringing services closer to their closest location.
What is the current status of your innovation?
In December 2023, this innovation won the Tons of Ideas competition organised by the Ministry of PAN RB and USAID to gather ideas from young civil servants. At the competition, we had the opportunity to present this innovation to be replicated in other regions. In 2024, Serang City Government received a letter requesting the replication of this innovation to be implemented in Malang City (East Java) and Cilegon City (Banten). In April 2024, this innovation will be implemented in all sub-districts in Serang City.
Innovation Development
Collaborations & Partnerships
A crucial collaboration was the one with Local Youth Organisation as a government partner in the implementation of business licensing counseling and education.
Users, Stakeholders & Beneficiaries
- Communities and business actors, MSMEs as the target of innovation, especially those who are constrained in obtaining business licences.
- The Serang City Government as a supporter regulation, budget, and cross-sector coordination.
- Investment and One Stop Integrated Service Officer and Sub-districts and villages officer as services provider
Innovation Reflections
Results, Outcomes & Impacts
This innovation has succeeded in encouraging an increase in the number of NIB issuances in just two months. The booth in Serang sub-district was able to attract up to 611 applicants with 535 NIBs successfully issued. This shows that this innovation can be a solution to improve the legality of MSMEs in Serang City. The dominance of business actors, which reaches 22.4% in Serang City, should be facilitated by bringing services closer to their closest location. In summary, the realization of the NIB issuance target has reached 90%, and the Public Satisfaction Index score also increased by 2 (two) points.
Challenges and Failures
- The need for continuous education as an effort to internalize the importance of business legality;
- Difficult access to infrastructure in the field;
- The need to maintain the spirit of young business people to be competitive;
- Government budget limitations;
- The bureaucratic flow of making local regulations to facilitate the ease of doing business in the regions.
Conditions for Success
- Strong cooperation among all parties involved, especially the sub-district, village, and youth organizations.
- The issuance of a strong legal basis through the Regulation for Ease of Doing Business Facilitation.
- Rich input from local youth facilitators, such as members of Karang Taruna.
- Coordinating with sub-districts, villages and youth organizations in the object area.
- Financial supports from Government.
Replication
In the future, we see this innovation being implemented in higher education where, many students are entrepreneurs. Moreover, the campus already has an obligation to become a business incubator, which is a place for them to get business legality. Also, Indonesia will get a demographic bonus in 2045, which is only will be achieved if young people are productive, so facilitating them from campus is something that needs to be done.
Lessons Learned
Young people who are given the space and opportunity to speak up and express their work will produce powerful innovations, like this one. Innovation that bridges problems and solutions. Mentored by experienced people, this combination will result the best solution for the greater world, as it integrates the fresh ideas and rich experience of seniors.
Project Pitch
Supporting Videos
Status:
- Identifying or Discovering Problems or Opportunities - learning where and how an innovative response is needed
- Generating Ideas or Designing Solutions - finding and filtering ideas to respond to the problem or opportunity
- Developing Proposals - turning ideas into business cases that can be assessed and acted on
- Implementation - making the innovation happen
- Evaluation - understanding whether the innovative initiative has delivered what was needed
- Diffusing Lessons - using what was learnt to inform other projects and understanding how the innovation can be applied in other ways
Innovation provided by:
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Date Published:
27 June 2024