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In 2001, Indonesia embarked on a decentralization process that has had a dramatic impact on the local political landscape, especially in relation to taxation and administrative processes. Rules and procedures that govern licensing, registration, some taxes and user charges have largely been devolved to local governments. A significant number of new licenses and charges have been created at the local level, and most licenses are issued through a complicated system of procedures and agencies. Licensing has become one of the most important barriers to business formalization and growth in Indonesia. The local licensing framework in Indonesia has three key problems, raising transactions costs and inefficiencies. Licensing reform through One Stop Shops (OSS). The Asia Foundation OSS technical assistance program. The methodology has proven to be highly effective.