Regulatory Clarity and Transparency in Indonesia’s Electronic Business Licensing System

Abstract

Introduction: The digitalization of business licensing through the Online Single Submission (OSS) system requires transparency of information and legal certainty. However, the recognition of the principle of transparency in regional regulations does not necessarily guarantee the availability of operational transparency mechanisms.

Purposes of the Research: This study aims to analyze the regulation of the principle of transparency under Palu City Regional Regulation Number 4 of 2024 concerning Investment Implementation and to assess its clarity and consistency with the national legal framework governing business licensing.

Methods of the Research: This normative legal research employs statutory and conceptual approaches. Primary and secondary legal materials were examined through library research and analyzed qualitatively by assessing the clarity of legal norms, consistency of regulatory provisions, and transparency obligations in electronic licensing services.

Findings of the Research: The analysis reveals that the recognition of the principle of transparency in Palu City Regional Regulation Number 4 of 2024 does not, in itself, establish operational standards for transparency, including access to licensing requirements, procedures, application status, grounds for rejection, and complaint mechanisms. These findings highlight the need to distinguish between legal ambiguity, regulatory gaps, and the need for regulatory harmonization, taking into account the respective authorities of each level of government. Conclusion: Strengthening transparency requires the specification of measurable information disclosure obligations and clear oversight mechanisms, while respecting the division of governmental authority and the integration of the national OSS system. This study proposes a normative evaluation framework to strengthen legal certainty and accountability in electronic business licensing.