Indonesia is Simplifying the Business License Process by the Online Single Submission – OSS System

Written by Ni Made Anggre Astari, SH

member of ASIANSIL, Young Practitioner at AIAC, YSIAC, Young Council at ICCA

posted on August 2, 2018


Again, Indonesia just improved their mechanism and system of investment license to the new one by launched the Presidential Regulation Number 24 year 2018 concerning “Online Single Submission for permit services” on June 20, 2018 which nowadays as known as the OSS System.

In consideration, this regulation issued to support Indonesia in increasing and rapidly welcoming direct investment both local and foreign investment.

Perhaps this OSS System will break the barriers and gaps of the previous complicated licensing process by making the permit mechanism easier and in a short time basis.

Furthermore, the OSS System will make easier to obtain a range of business licenses the entrepreneurs need to operate business (location permit, environment permit or building permit), whether they are issued by the central government or local government with mechanism of compliance the commitment. It also helps to connect with all stakeholders and obtain licenses in a safe, quick and real time way. At last but not least, it helps to report and solve license problems in one place.

The OSS’s Operator

In the long term operation of the OSS system will be handled by the Investment Coordinating Board (BKPM), but for temporarily it will be handled by the Coordinating Ministry for Economic Affairs . During 5 months the BKPM will prepare organizational change and human resources to take over the operations of such system.

The Guideline of Using The OSS System

Before access the OSS System, the entrepreneurs need to know about these 3 points :

  1. The Terms and Conditions about Negative List Investment based on President Decree Number 44 year 2016;
  2. The Type of their enterprise i.e. Micro, Small. Medium or Large enterprise based on Law Number 20 year 2008 or other related regulation;
  3. The business characteristic which have to obtain environment protection plan (a.k.a AMDAL) based on Ministry of Environment and Forestry Regulation Number 5 year 2012.

After processing the OSS, the registered enterprises will get an Identity Business Number (a.k.a NIB).

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