The Absolute Authority of Local Governments in Managing and Granting Permits for Business Actors Based on the Principles of Regional Autonomy

Abstract

The principle of regional autonomy provides local governments with substantial authority to manage and regulate their regions, including the issuance of business permits. This study aims to analyze the scope of absolute authority held by local governments in managing business permits and its alignment with national policies to promote sustainable regional development. Using a qualitative descriptive approach, the research examines legal frameworks, policy documents, and case studies to identify challenges and opportunities in the implementation of business licensing. The findings reveal that while local governments have significant authority, the central government's oversight remains crucial to ensure uniformity, legal certainty, and prevention of power abuse. Key challenges include overlapping regulations, bureaucratic inefficiencies, and limited capacity at the regional level. This study highlights the importance of integrated systems like Online Single Submission (OSS) and risk-based licensing to streamline processes. The implications of this research emphasize the need for policy reforms that enhance transparency, accountability, and intergovernmental coordination to create a conducive investment climate and support sustainable development.