oss system in indonesia - sistem OSS di indonesia

[2020 Updated] OSS System Services Begin to Operate at BKPM

  • InCorp Editorial Team
  • 31 December 2018
  • 3 minute reading time

Nearing the end of the year 2018, The Electronic Integrated Business Licensing System (Perizinan Berusaha Terintegrasi Secara Elektronik abbreviated as PBTSE), also known as the Online Single Submission (OSS) system, will be transferred from the Coordinating Ministry for Economic Affairs to the Investment Coordinating Board (BKPM), starting on January 2, 2019.

The schedule is as the following:

  1. Operational licensing services assisting and operating the OSS system will begin on January 2, 2019. Issues concerning the transfer shall be managed jointly by the Technical Team from Coordinating Ministry for Economic Affairs.
  2. Provision of OSS system infrastructure by BKPM will begin on March 1, 2019.

BKPM’s Main Secretary Andi Maulana stated that he was ready to accept the transfer of business licensing services and OSS system management from the Coordinating Ministry for Economic Affairs. The OSS system is a web-based system that currently runs on cloud infrastructure and as such does not require any application transfer.

Coordinating Minister for Economy, Darmin Nasution has emphasized that OSS will only run temporarily in the Coordinating Ministry for Economic Affairs. It is only a transitional period before its permanent implementation by BKPM.

OSS was established based on Government Regulation Number 24 of 2018 concerning Electronic Integrated Business Licensing Services. Established on July 9, 2018, the system attempts to simplify business licensing and create a model of integrated licensing services that are fast, inexpensive and provide certainty for business applicants.

Other updates: New Negative Investment List Opens 54 Sectors to Foreigners

What to expect?

The system is currently accepting applications as usual since such process is being conducted online. Further updates will be visible next year upon execution of the schedule. For more information contact our teams of advisors based in Jakarta, Semarang, and Bali.

Other updates: Digital Financial Innovation in Indonesia

2020 Update: OSS 1.1. is in Its Full Operation

To ensure even better business compliance and the streamlined process, the Indonesian government has upgraded its OSS system to OSS version 1.1.

Highlighted differences between the upgraded OSS system and the previous one include defined business actors for account registration, more clear business licensing stages, better data entry format legality, location permit for forest and water, application of commercial and operational licenses, notice about business requirements that are yet to be fulfilled, automatic calculation of total investment value based on all five digits of KBLI codes, and an addition of branch office registration and Foreign Company Representative Office (KPPA) registration.

Cekindo is a leading one-stop market entry company that not only provides market penetration services but presents legal updates in order to keep Cekindo’s clients updated and in compliance with the current law.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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Frequent Asked Questions

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.