Policy implementation, according to Cendekia Jaya and Syahriawiti (2020), can be simply understood as a process of translating established regulations or decisions into concrete steps and actions that can be applied in the field. In practice, policy implementation is far from a smooth process; it is highly complex and influenced by multiple factors, particularly those related to political interests. The primary aim of policy implementation is to produce tangible and beneficial outcomes for society, whether through direct effects or long-term impacts.

In his book, George C. Edward III (1980), as freely interpreted by the author, outlines that policy implementation involves four interrelated elements:

adequate system and competent human resources. However, technical issues with the OSS application and limited public outreach efforts were also identified as ongoing challenges.

Law No. 20 of 2008 defines a micro-enterprise as a significant business activity independently operated by an individual, which is neither a branch nor a part of a medium or large enterprise, whether directly or indirectly affiliated. The Micro and Small Business License, issued by authorized institutions, aims to provide legal assurance and facilitate access to business support. Micro and small enterprises typically exhibit characteristics such as limited capital and assets, small-scale operations, a minimal number of employees, and simple management systems.

involving eight informants, the study concluded that implementing OSS RBA in Bintan Regency aligns with Government Regulation No. 5 of 2021, particularly to set standards, objectives, and implementation targets.

Known as the Online Single Submission (OSS) system, this comprehensive digital business licensing platform is currently operated by the Government of Indonesia. The initiative aims to simplify procedures and accelerate the time required for business actors to get permits. According to Puspitasari and Widodo (2024), OSS facilitates Micro, Small, and Medium Enterprises (MSMEs) in fulfilling various licensing requirements such as registering a Business Identification Number (NIB), getting business permits, and gaining standard certifications through an online system. The OSS platform is designed primarily to streamline business licensing processes by adhering to established service standards while also ensuring certainty regarding processing times and associated costs. As such, the OSS system is projected to serve as an effective tool for facilitating and simplifying business licensing stages.

In its effort to reduce bureaucratic complexity and attract investment, the Indonesian government issued Government Regulation No. 24 of 2018 on Integrated Electronic Business Licensing. This regulation laid the foundation for the establishment of the OSS system, aiming to standardize licensing procedures at the national level. The policy was further refined through Government

Regulation No. 5 of 2021 on Risk-Based Business Licensing, marking the transition of the OSS system to a risk-based model (OSS RBA).

Although the OSS system has been implemented nationally, regional disparities in its application remain clear. Cirebon City, for example, has yet to issue specific local regulations (either as Regional or Mayoral Regulations) on MSME licensing through the OSS system. As a result, the licensing process in the region still refers exclusively to Government Regulation No. 5 of 2021. The absence of a local legal framework poses a significant challenge to the effective implementation of OSS. Therefore, local governments are urged to plan derivative regulations to support the implementation of OSS RBA and provide legal assurance for MSME actors.

business actors and inadequate infrastructure.

As a legal identifier within the Online Single Submission (OSS) system, the Business Identification Number (NIB) plays a critical role. According to Article 25, Paragraph 1 of Government Regulation No. 24 of 2018 on Integrated Electronic Business Licensing Services, the NIB directly authorizes business actors to engage in business activities within their designated sectors. It serves as the legal foundation for conducting business, accessing licensing services, and getting various facilities such as tax incentives, financing access, and customs services. The primary aim of the NIB is to simplify bureaucracy, enhance transparency, and accelerate the licensing process in order to support economic growth and investment in Indonesia. However, despite these aims, implementing the NIB still faces several challenges. These include insufficient outreach and socialization among business actors, uneven digital infrastructure, and frequent regulatory changes that often cause confusion among both implementers and entrepreneurs (Chairul Fajar Tafrilyanto et al., 2023).

absence of support services such as a helpdesk. The other factors that hinder include underdeveloped regulations and incomplete system integration.

Communication plays a pivotal role in the success of policy implementation. As a central element of the process, communication ensures that policy-related information is clearly conveyed to all relevant stakeholders, enabling them to understand and execute the policy effectively (Laili & Choiriyah, 2021). According to Edward III, the successful implementation of public policy is strongly influenced by effective communication between implementers and stakeholders. Edward III identifies three key components of communication: message transmission, clarity of information, and consistency of delivery.

In terms of transmission, the Cirebon City DPMPTSP has disseminated information through roadshows across five districts and direct socialization efforts, including the use of the official OSS website. While this strategy has reached business actors, its effectiveness remains limited for elderly groups, who often struggle with digital technology. Therefore, more adaptive approaches are needed, such as intensive assistance and simplified communication methods.

Figure 1. OSS Road Show Activities in Cirebon City

Clarity, Regular socialization and assistance efforts are intended to help micro and small business actors (UMK) understand the risk-based OSS system. The main obstacles include low digital literacy and the common misconception that licensing procedures must be conducted directly at the office, even though they can be completed online via oss.go.id. The persistent perception that the licensing process is complicated also hinders participation. Therefore, more user- friendly communication strategies such as simplified media and face-to-face approaches need to be enhanced.

Consistency, DPMPTSP maintains consistency in information delivery by referring to the OSS website and Government Regulation No. 5 of 2021. This is supported by internal supervision and the excellent service program. The roadshows held in five districts illustrate continuity in communication strategies. However, effectiveness could be improved through more interactive communication methods to ensure that business actors fully understand the licensing procedures.

The availability of adequate resources is a crucial factor that determines the success of public policy implementation. No matter how well a policy is designed, its implementation will be hindered and yield suboptimal results if not supported by sufficient resources. Two main aspects must be prioritized: the quality of human resources and the availability of supporting facilities, both of which serve as key enablers for a smooth and efficient implementation process.

Human Resources at the Cirebon City DPMPTSP, three staff members in Human Resources manage licensing services—two from the Head of Department and one from the Division Head—who specifically oversee the OSS RBA system. These officials are tasked with ensuring the smooth operation of licensing procedures and helping applicants facing difficulties. Although limited in number, they continue to perform optimally through coordination and capacity- building efforts. Challenges such as low digital literacy among the public are addressed through technical guidance and direct consultation. In line with

Edward III’s theory, the quality of human resources greatly influences the effectiveness of policy implementation (Mustika et al., 2022), hence, additional staffing and advanced training remain essential.

Supporting facilities, such as computers, printers, office space, and a Consultation Clinic at the Front Office, play a central role in service delivery. The clinic is especially helpful for business actors unfamiliar with digital systems, providing them with help in understanding licensing procedures. According to Edward III, adequate infrastructure supports policy implementation, while limited facilities can become barriers. Therefore, even though the current facilities are functional, further technological upgrades and service capacity enhancements are needed to effectively reach a broader range of business actors.

Disposition reflects the characteristics of policy implementers (staff or officers), such as their dedication to providing optimal services, honesty, and work ethic. According to Edward III, disposition comprises two key indicators: cognitive understanding and incentives.

Cognitive, Employees’ understanding of regulations and the OSS RBA system is critical, especially considering the system is continually updated. Staff at DPMPTSP have participated in various training programs to enable them to guide business actors through the self-service licensing process. Although their comprehension of the system is generally strong, challenges remain in disseminating information, particularly to entrepreneurs unfamiliar with digital technology. To address this, DPMPTSP regularly conducts outreach and collaborates with related agencies to expand the reach of information. In line with Edward III’s theory, strong cognitive understanding facilitates adaptation to policy changes and improves the effectiveness of communication. Thus, more inclusive and user-friendly outreach methods are necessary.

Incentives, employee motivation is influenced by both financial and non- financial rewards. DPMPTSP implements a service-based incentive system like service, assessed through licensing achievements, investment realization, and public satisfaction surveys. However, budget limitations hinder the full

implementation of these incentives, and the employee recognition program started in 2022 has not been reactivated. While staff continue to perform their duties professionally, the lack of sustained incentives may reduce motivation and service quality. Edward III’s theory underscores the importance of incentives in driving performance. Therefore, DPMPTSP may consider non-material rewards such as certificates, promotions, or performance acknowledgments as alternative means to sustain employee morale.

The bureaucratic structure, or organizational framework, refers to the system of coordination and authority hierarchy among actors involved in policy implementation. Edward III identifies this structure as one of the four key factors that influence the effectiveness of policy execution. A bureaucratic structure comprises two main elements: first, Standard Operating Procedures (SOPs), which regulate workflow within the organization; and second, fragmentation of roles and functions, which allocates responsibilities and authority across different entities within the system.

Standard Operating Procedures (SOPs), the DPMPTSP of Cirebon City has established standardized procedures for delivering licensing services, encompassing preparation, planning, and execution stages. Service quality is measured through the Public Satisfaction Survey, which includes 11 indicators— such as transparency of information. The evaluation is conducted directly by service users after receiving services and serves as a reflection tool for continuous quality improvement. Consistent implementation of SOPs has had a positive impact on user satisfaction, although periodic reviews and refinements are still performed. According to Edward III’s theory, clear and efficient SOPs help minimize administrative errors and enhance policy effectiveness. Therefore, the DPMPTSP must continually adapt its SOPs to remain aligned with regulatory dynamics and user needs.

Figure 3. Public Satisfaction Survey

Fragmentation, implementing licensing policies requires coordination between DPMPTSP and DKUKMPP, along with 16 other technical local government units (SKPDs). DPMPTSP handles administrative verification, while the technical SKPDs handle field verification. Currently, 12 out of 16 SKPDs are actively involved in the process. Although coordination has been systematic, obstacles persist, such as the lack of participation from some SKPDs and differences in standard operating procedures (SOPs), which slow down the verification process. According to Edward III’s theory, effective bureaucratic fragmentation can enhance policy implementation through strong inter-agency coordination. Therefore, it is essential to strengthen cross-sectoral collaboration and align SOPs among institutions. The main aim of this initiative is to reduce licensing processing time and ensure a strong legal foundation for business actors.