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The economy development based on the economic democracy allows the people to play an active role in development activities.
In this context the government is obliged to give directives and counselling in favour of economic growth and create a sound climate conductive to the development of the business world- on the contrary, the business world needs to give responses to the directives and counselling through concrete activities.
To ensure the success of development with emphasis on equitable distribution of development and its gains, sound and dynamic national stability, and fairly high economic growth, it is deemed necessary to increase the public participants.
Licensing aspects play an important role in achieving industrial growth. Aware of the role, these licensing aspects must encourage and attract investors to invest their capital in the industrial sector, therefore, they deserve well-guided counselling.
Licensing is part of policies, which, if used efficiently, will serve as an effective means of boosting the development of the business world in support of development activities. The system of licensing can be therefore used, among other things, to avoid waste or misuse of scarce investment funds.
Through industrial regulation, promotion and development efforts, the government is directing the creation of industrial business climate towards sound and stable one. With such a sound and stable industrial business climate, the industrial sector will hopefully act as a great stimulus to create wider job opportunities as well as to build the people's trust in their own capability and strength in developing the industry.
In this context Law No.5/1984 on the industry secures the arrangement of industrial licences, so that existing licences are only those truly needed for the activities of the people and those necessarily controlled for the establishment of new industrial companies and the expansion of industrial companies.
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The addition of production capacity is the addition of production capacity exceeding the permissible production capacity.
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The obligation to obtain industrial licences for the establishment of industrial companies serves as the directives and preventive measures for the state to ensure that the industrial development can be implemented conceptionally according to the specified plan.
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The obligation to register certain types of industries is aimed to compile data on the growth and development of : small-scale industries.
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Consultations with relevant ministers are aimed to allow the minister take into account proposals and considerations from other ministers in determining certain types of industries in groups of small-scale industries.
In this Government Regulation principle approval is still needed to allow enough time to industry owners to make preparations and development efforts including the procurement and installation of equipment.
In the past permanent licences were definitively issued to industrial companies that had already started commercial production, but under this provision industrial licences are granted if industrial companies have fulfilled all provisions in the law in force and complete the construction of plants and production facilities.
Referred to as the law in force is the law governing requirements to obtain licences for the establishment of industrial companies, such as location licences, nuisance acts on environmental impact assessment, environmental management plan, and environmental monitoring plan.
The types of licences as meant in this provision are meant to streamline licensing procedures especially for industrial companies located in industrial estates including bonded zones engaged in processing businesses or for industrial companies whose types, commodities and production processes that do not destroy or endanger the environment and do not use natural resources excessively.
Apart from that, they are also meant to encourage industrial companies to relocate to industrial estates or bonded zones equipped with physical facilities, infrastructures and other supporting facilities.
With the simplified licensing procedures, industrial companies fulfilling the criteria can be directly granted industrial licences without having to obtain prior principle approval, except to make a letter of statement.
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Referred to as 'meeting environmental requirements' is having made efforts to control environmental pollution as a result of industrial activities according to the law in force.
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This provision is meant to encourage industrial companies to relocate to land designated for industries so as to control environmental impacts as a result of industrial activities.
Taking efficiency and economic benefits into account, industrial companies may be built near the source of raw materials, but the industrial companies must fulfil environmental requirements by making efforts to control the impact of their activities on the environment according to the law in force.
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Storage spaces sharing the same location as industrial activities do not need warehousing licences because they have already been included in industrial licences that industrial companies must possess.
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