GUIDE TO ONLINE SINGLE SUBMISSION (OSS)

In the recent years, the number of investment in Indonesia has showed a significant increase. The current infrastructure reform by the government has been turning Indonesia as one of the favourite destination for foreign investor. As a part of continuous effort to boost the investment in Indonesia, the government launched Online Single Submission (OSS) system with aim to accelerate the business licensing process in July 2018.

The OSS System is a Business Licensing system issued by the OSS Institute on behalf of ministers, governors, mayors and other related government institution to Business Actors through an integrated electronic system. OSS Institute is currently working under the supervision of Ministry of Economy of Republic Indonesia until National Coordinating Investment Board ready to take over the OSS System.

Implementation of Business Licensing through OSS system includes:

  • Registration;
  • issuance of Business Permit and issuance of Commercial or Operational Permit based on Commitment;
  • fulfilment of Business License and Commercial or Operational Permit Commitments;
  • payment of fees;
  • facilitation;
  • validity period; and
  • supervision

 

NIB

Before obtaining your business, operation and commercial licenses, you first need to have Business Identification Number (NIB). NIB serves as an identification of the business. NIB can be obtained by registering your business in the OSS system.

NIB is valid as long as the Businesses carries on activities that are in accordance with the provisions of the Law of Republic Indonesia.

Based on Government Regulation number 24/2018, NIB will also apply as Company Registration Certificate (TDP), Import License Number (API) and custom access. Businesses who has obtained NIB will also automatically be registered as participants in BPJS Health and Manpower program.

 

Business Licences

After the issuance of NIB, businesses are required to apply for business licenses.

There are several requirements for the issuance of business licenses. To obtain business license, you will have to first secure several permits, which include:

  • Location permit
  • Water location permit
  • Environmental permit
  • Building Permit

Once all the permits is secured, Business Licenses will be activated.

 

Commercial and Operational Licenses

In order to conduct commercial and operational activities, business must obtain commercial and operational licenses. Commercial and operational licenses usually is the in the form:

  • standards, certificates and / or licenses; and / or
  • registration of goods / services,

The licenses will be in accordance with the types of products and / or services commercialized by Businesses.

 

It is important to take note that there are certain licenses that are still need to be processed in PTSP Center BKPM instead of on the new OSS system. The licenses are as follow:

Sectors Type of Licensing
Electricity
  • Geothermal permit;
  • Assignment of preliminary surveys and exploration geothermal
 Oil and Gas
  • Permit to utilize oil and gas data;
  • Survey permission;
  • Oil and gas storage business license;
  • Oil and gas processing business license;
  • Business license to transport oil and gas earth;
  • General commercial and oil and gas business licenses;
  • Permission of the oil subsector’s foreign representative office
  • Natural gas
Mineral and Coal
  • Mining exploration business license;
  • Termination of the mining license upon returning process;
  • Mining business license for production operations specifically for transportation and sales;
  • Mining business licenses for production operations;
  • Mining business licenses for production operations specifically for processing and / or purification;
  • temporary permission to carry out transportation and sales;
  • Business license for mining service.
 

Public Works and Public Housing

  • Business License for development and property
  • Business License for housing sector
 

Custom and Tax Facilities

  • granting facilities for importing machinery, goods
  • capital and materials for sector investment
  • industries and industries that produce services;
  • granting facilities for importing machinery, goods electricity sector capital;
  • granting facilities for importing machinery, goods capital for contract works and agreements works of coal mining business;
  • proposing exemption facilities or reduction of corporate income tax (tax holiday); and
  • proposing corporate income tax facilities for investment in fields
  • certain businesses and / or in regions certain (tax allowance)
General Investment  

  • license for the establishment of KPPA
  • license to open a branch office for certain sector
  • Recommendations for the provision of limited-stay visa to shareholders
  • recommendation for status transfer of visitor stay permit
  • into a limited stay permit
  • Recommendation for status transfer of limited stay permit into permanent stay permit.


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