- September 28, 2018
- Posted by: Hilda Saputra
- Category: Uncategorized
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:
- 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;
- validity period; and
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.
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|
|Oil and Gas||
|Mineral and Coal||
Public Works and Public Housing
Custom and Tax Facilities