Risk-Based Licensing Arrangements: Between Convenience and Legal Certainty

Abstract

Government through Law No.6/2023 has changed the licensing system which originally used the concept of licensing (license-based) to became risk based (risk based approach). The change in approach was carried out by the government in an effort to simplify licensing considering that the concept of licensing in practice tends to be complicated and hampers the business sector.  In setting up a risk-based licensing system, the use of license is only required for businesses with certain risk standards. The change in approach to the licensing system brings convenience, but with the application of uncertain risk standards it will injure legal certainty in society. Therefore, this study will raise issues related to legal certainty in the regulation of risk-based licensing systems. This research was conducted using a normative juridical method using a statute approach and conceptual approach. The result of this study will show that there are problems in legal certainty in risk-based licensing arrangements, so the government could be more careful in implementing the risk-based licensing system