In the five years leading up to 2022 the government worked to centralise permit applications through an online single submission (OSS) system to make the submission and processing of such applications more efficient. In light of this, Law No. 11 of 2020 on job creation (Job Creation Law) amended Law No. 30 of 2014 on government administration (Government Administration Law). However, in November 2021 the Job Creation Law was declared conditionally unconstitutional because it was created via omnibus method, which was not recognised at the time. Subsequently, the government made the necessary corrections and enacted Law No. 6 of 2023.

The Job Creation Law brought about two notable improvements. Firstly, it shortened the default time limit for government officials to process applications, issue decisions or carry out actions from 10 to five business days. Secondly, it allowed the electronic system to approve applications if all of the requirements were met. The submission of permit applications through the OSS system offers a substantial change compared to previous processes.

Despite these changes, concerns remain over the readiness and capability of the OSS system to effectively handle and process permit applications. The amended Government Administration Law does not include the provisions required to carry out the automation of permit approval. In essence, a system that automatically processes and approves permits requires the support of other components in the related ecosystem. This includes the establishment of a uniform and standardised format for applications across different sectors of the economy.

In addition, the requirements should be quantifiable as opposed to qualitative, but such criteria are not currently prescribed by the amended Government Administration Law. Another challenge arises from the absence of provisions clarifying who assesses and determines whether an application has met the requirements prescribed within the electronic system. Moreover, the amended law does not outline the necessary provisions to ensure that the requirements can be processed solely by the electronic system without further assistance.

Although the amended Government Administration Law introduces several positive changes, it removes the legal measures previously available to applicants during the approval process, if a permit application is not issued in the given time period or if a request is denied. Prior to the amendment, the Government Administration Law provided legal remedies for individuals and businesses to petition state administrative courts for the issuance of an order towards the concerned government official to issue the related permit.

In the absence of legal recourse, the public must look to the government to protect their rights. Consequently, the government’s responsibility extends beyond mere oversight of permits to include issuance when the electronic system does not function effectively. Not fulfilling this obligation could increase the number of permit-related lawsuits, particularly in cases of proven detriment to the permit applicant. Additionally, there are prerequisites for presidential regulations aimed at supervising the process of determining the format of decisions and actions to be taken. However, as of April 2024 these regulations had not been put into effect.

The amendments introduced to the Government Administration Law brought about by the Job Creation Law offer substantial opportunities for enhancements regarding the administration of automatic permit approvals. At the same time, the amendments present an opportunity to further improve the relevant legislative framework in order to help ensure there is an adequate level of detail in the new regulation and the enforcement of the related electronic system for permit applications.