Just like in almost every country, starting a new business in Indonesia used to mean navigating a myriad of government offices at both local and province levels. Different regions in Indonesia might require different types of licenses based on the business activities, and multiple applications and forms must be completed. In addition, various fees must be paid throughout the process. Even though starting your own business can be incredibly exciting, but these previous steps of starting a business in Indonesia might not be exactly thrilling for you. Now, the government of Indonesia has come up with a much better way to help both local and foreign investors start businesses through Online Single Submission System (OSS) with Single Business Identification Number (NIB) – making Indonesia truly become a business-friendly country.
Overview of Online Single Submission System (OSS) and NIB
According to the Presidential Regulation No. 91 Year 2017, Indonesia has enforced the OSS to keep pace with the digital economic trends by digitalising license application for businesses in Indonesia.
The OSS has been in full force since July 2018, serving the purpose of making doing business in Indonesia easier, especially for foreigner investors. Before the implementation of the OSS system, this paperless one-stop concept had been tested in different locations in Indonesia. It has now integrated with several governmental systems and will continuously integrate with more systems in the future.
Did you know? The government launched the newest version of OSS in November 2019. Learn the major differences between the old and new OSS versions.
Functions of NIB
Unlike the former business license or permit application process that requires a thorough and lengthy review from the BKPM (Indonesian Investment Coordinating Board), OSS makes online license registration possible in one place with NIB.
Replacing Other Permits and Licenses
Business Registration Number (also known as Business Entity Number or Business Identification Number – NIB) is regarded as the new single registration number for a variety of business purposes. The NIB has since then replaced many other licenses, permits and documents, such as TDP, Import License (API-U/API-P) and Custom Registration Number (NIK). The procedure to obtain SIUP and more business licenses has been simplified as well.
Similarly, companies that complete their business registration via OSS will be potentially certified to be registered for national social security insurance (BPJS) automatically.
As a result, business registration processed through OSS enables foreign-owned companies PT PMA to forgo the principle license, and use NIB to proceed with other operational and commercial permits.
Have you heard that now 45 additional business fields no longer need to apply for additional business licenses in Indonesia? Learn about the super news.
Faster Processing and Avoiding Duplication
While the previous business registration process took weeks to complete, OSS system introduces a one-stop licensing solution with NIB that will only take hours to accomplish. You will most likely to obtain your NIB in 30 minutes. Furthermore, through the issuance of NIB, license or permit duplication can be avoided.
What if Your NIB Registration Is Rejected?
AHU online is the administrative system responsible for all legal entity registration and company data change while OSS acts as an agency that authorises and issues commercial and operational licenses for companies listed on the AHU online.
Currently there are only some sectors allowed for NIB registration through OSS even though they are registered at AHU online. In this case, these companies must adjust their business type, intent, and purpose in accordance with the OSS standards within a year in order to obtain their NIB.
For professional consultation on obtaining NIB through OSS, types of business entities, and qualified sectors for NIB registration, please contact Cekindo by filling in the form below.