Regulatory Governance and Citizen Participation in the Implementation of Risk-Based Business Licensing Services

Abstract

This study analyzes regulatory governance and citizen participation in the implementation of Indonesia’s risk-based business licensing system (OSS-RBA). It addresses three research gaps: the limited understanding of how OSS-RBA regulations are interpreted at the local level, the underexplored role of citizen and SME participation in determining licensing effectiveness, and the separation between regulatory design and service quality in previous studies. The research aims to examine how OSS-RBA regulations are translated in local governance contexts, how citizen participation is formed, and how regulatory design influences service quality outcomes. A qualitative socio-legal methodology is employed, combining doctrinal legal analysis of the Job Creation Law and related regulations with empirical case studies across selected local governments. Data are collected through semi-structured interviews, document analysis, and thematic interpretation to capture the gap between “law in the books” and “law in action.” Findings show that service quality is highly dependent on regulatory governance capacity, particularly institutional coordination and digital integration. Citizen participation remains procedural, constrained by limited literacy, unequal access, and reliance on intermediaries. The study concludes that OSS-RBA reform requires stronger governance capacity and inclusive participation mechanisms to achieve effective, transparent, and responsive licensing services.