Online Single Submission (OSS): Legal update Indonesia

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 has been tailored to assist business actors in obtaining business licenses faster and easier.  Below please find a brief survey of GR 24/2018:

 

Government Agency in Charge

Pursuant to GR 24, the OSS is managed by the corresponding OSS Agency having the legal authority to:
  • issue licenses through OSS;
  • determine the implementation policies for licenses issued through OSS;
  • determine the implementing guidance for the issue of licenses through OSS;
  • manage and further develop the OSS system; and
  • cooperate with third parties regarding the implementation, management and development of OSS.

 
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.

 

Reformation of Licensing

In order to speed up and simplify the procedure to obtain business licenses, OSS introduces a new licensing system based on the classification, elimination, consolidation and amendment of titles, and on the adjustment of existing licenses. OSS reduces the license application process to the following steps:
  • user registration;
  • grant of business license; and
  • grant of commercial/operational license.

 

Users of OSS

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.

 

Application Process for Business Licenses

Obtain Business Identification Number (Nomor Induk Berusaha – “NIB”)

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.

 

Obtain Business License

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.

 

 

 

​Sector

License​

Electricity
  • ​Geothermal Business License;
  • Appointment of geothermal feasibility study and exploration.Geschäftslizenz für Geothermie;
​Oil and Gas
  • ​Utilization of Oil and Gas Data License;
  • Survey License;
  • Oil and Gas Storage Business License;
  • Oil and Gas Processing Business License;
  • Oil and Gas Transportation Business License;
  • Oil and Gas General Trade Business License;
  • Foreign Representative Office License in oil and gas sector.
​Mineral and Coal
  • Exploration Mining Business License;
  • Termination of Mining Business License due to the return;
  • Mining Production Operation Business License, specifically for transportation and sales, and its extension;
  • Mining Production Operation Business License and its extension;
  • Mining Production Operation Business License, specifically for processing and/or refining, and its extension;
  • Temporary License to carry out transportation and sales;
  • Mining Production Operation Business License for sales;
  • Mining Services Business License and its extension.
​Public works and housing
  • Development and Property Undertaking Business License;
  • Housing Sector Business License.
​Finance
  • Provision of import facilities for machinery, capital goods and materials for investment in the industrial sector and industries that provide services;
  • Provision of import facilities for machinery and capital goods for the electricity sector;
  • Provision of import facilities for machinery and capital goods for Work Contract (Kontrak-Karya) and Work Agreement for Coal Mining Concession (PKP2B);
  • Proposal for tax holiday;
  • Proposal for tax allowance.
​BKPM
  • License to open a Representative Office of Foreign Company (KPPA), other than in the oil and gas, trade and construction sectors;
  • License to open a Branch Office for companies that had their business license issued by BKPM;
  • Limited Stay Visa (VITAS) Recommendation for shareholders;
  • Recommendation to change the status of a Visit Permit to a Limited Stay Permit (ITAS);
  • Recommendation to change a Limited Stay Permit (ITAS) to a Permanent Stay Permit (ITAP);
  • Priority service related to infrastructure in energy and mineral resources sector.​

 

 Contact

Markus Schlüter

Associate Partner

+49 221 9499 093 42
+49 221 9499 099 00

Send inquiry

Tomy Harsono

Partner

+62 21 5056 0405
+62 21 5056 0412

Send inquiry

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