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pubilshed on 2. August, 2018
Pursuant to Government Regulation Number 24 of 2018 on Integrated Business Licensing Services through Electronic Systems (“GR 24/2018”), the Indonesian government launched an “Online Single Submission (OSS)” web portal under www.oss.go.id on 9 July 2018.
The OSS is currently managed by the Coordinating Ministry for Economic Affairs, and will be transferred to the Indonesian Investment Coordinating Board (“BKPM”) once the system has been fully developed and BKPM is ready to take over its operation.
Users of OSS are categorized into individual and non-individual users. Non-individual users comprise limited liability companies, general companies, local general companies, other state-owned legal entities, public service agencies, broadcasting agencies, business entities established by foundation, cooperatives, joint ventures and civil partnerships.
To obtain a NIB, the business actor needs to access OSS and submit the following information: Individuals shall submit (a) ID Number (NIK); (b) address; (c) line of business; (d) location of capital investment; (e) value of planned capital investment; (f) manpower utilization plan; (g) business and/or activity contact number; (h) plan to request fiscal, customs and/or other legal classifications; and (i) Individual Tax Identification Number (NPWP). Non-individuals shall submit (a) name and/or deed of establishment number or registration number; (b) line of business; (c) type of capital investment; (d) country of origin of shareholders, for foreign shareholders; (e) location of capital investment; (f) value of planned capital investment; (g) manpower utilization plan; (h) business contact number; (i) plan to request fiscal, customs, and/or other legal classifications; (j) non-individual NPWP; and (k) NIK of business and/or person-in-charge. A limited liability company must provide a notarially certified deed of establishment and the official approval as legal entity issued by the Ministry of Law and Human Rights before they can apply for a NIB through OSS.The NIB issued by OSS also serves as corporate registry, import license, customs identification number and registration to the health and manpower social security program.
To obtain a business license, the business actor must first obtain a NIB and submit the additionally required certificates. In general, these certificates may include a location permit, water location permit, environmental permit and building establishment permit. Following the submission of the required certificates, the OSS system will automatically generate the business license for the applicant. Business actors who already obtained a business license may engage in the following activities: (a) acquire land; (b) amend the size of land; (c) build and operate buildings; (d) procure equipment and facilities; (e) hire employees; (f) complete certification or quality testing; (g) effect commissioning; and/or (h) produce goods or services. Business licenses generated by OSS cover the following fields: electricity, agriculture, environment and forestry, public works and housing, marine and fishery, health, food and pharmaceuticals, industry, trade, transportation, informatics and communication, finance, tourism, culture and education, high education, cooperatives and micro/small/medium enterprises.
FFor certain business activities and products the business actor is requested to obtain an additional commercial/operational license besides the actual business license, before selling products to the market.Commercial/operational licenses can comprise standards, certificates, licenses and/or product registration as required under prevailing laws and regulations.
Business actors having already submitted a business license application before the enactment of GR 24/2018, but have not yet obtained the license, are requested to re-submit the application through OSS. Business actors who already obtained their business license and/or commercial/operational license before the enactment of GR 24/2018, and who now require new licenses due to business expansion, need to register the old license to OSS and subsequently apply for the corresponding expansion license. Upon the launch of OSS, most business licenses have to be applied for through OSS, however, some licenses are still being processed through the BKPM office. Those licenses are:
The implementation of OSS rises the hope for business licenses to be obtained faster and easier than before. However, there are still many problems that need to be solved during the transition period. In our recent experience, some clients with specific business activities still experience difficulties upon applying for a business license via OSS. Hopefully, these obstacles should be successfully overcome upon the consistent development of the system, finally resulting in a smoothly running process.
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