Home Blog Application for IUI and Expansion Licenses is Now Integrated into OSS System Business Licenses | Business Setup Application for IUI and Expansion Licenses is Now Integrated into OSS System InCorp Editorial Team 3 November 2023 5 minutes reading time Table of Contents What is an OSS System? Industrial Business Permits Expansion Permits Requirements for Industrial Business Permit Registration Industrial Business Permit Application Exemption of Requirements What Is Technical Verification? Past Permits Obtain Your Industrial Business Permit with InCorp Indonesia The licensing services for Industrial Business Permits (IUI) and Expansion Permits in Indonesia are now mandatory through the Online Single Submission (OSS) system. The OSS system in Indonesia is one of the government’s efforts to facilitate business for foreign investors looking to start a business. What is an OSS System? The OSS system has been in operation since June 2019. This system requires entrepreneurs who wish to start a new business or expand their operations in Indonesia to apply for the necessary permits through the OSS platform, whether they are mandatory or optional permits. This is good news for foreign investors, as it eliminates the need to visit various government offices to obtain business permits. Related article: OSS System and Business Identification Number in Indonesia Industrial Business Permits According to Regulation of the Minister of Trade of the Republic of Indonesia Number 30/2019, there are two types of permits specifically related to industrial companies: IUI and expansion permits. All industrial companies, regardless of their size, are required to obtain an IUI. IUI can be categorized into three types: Small IUI for companies with investments below Rp1 billion (excluding land and buildings) and fewer than 20 employees. Medium IUI for companies with investments ranging from Rp1 billion to Rp15 billion (including land and buildings) or assets below Rp1 billion but with more than 20 employees. IUI serves as a permit for companies operating in the raw materials, production, and machinery or equipment storage sectors. Exemptions for Industrial Business Permits To operate an industrial business, a company must be located in an industrial zone. However, there are exemptions for companies that meet one of the following criteria: Located in a city/regency that does not have an industrial zone. Categorized as small or medium-sized companies without potential environmental pollution risks. Require specific raw materials and/or are involved in production processes that require a special location. If an industrial company changes factors such as the number of employees, production capacity, investment value, additional industrial classifications, or business location changes, they must update their IUI. Have you heard that securing an IUI is now easier than before? Requirements have been simplified. Expansion Permits Industrial companies are only required to apply for expansion permits if they plan to expand their industrial operations, especially if it involves using natural resources based on an Environmental Impact Analysis (AMDAL). Just like IUI, expansion permits must be applied for through the OSS. Further information on the permit application procedure can be found here. Requirements for Industrial Business Permit Registration For industrial companies, having an IUI is essential. Here are the requirements that need to be prepared for applying or registering an Industrial Business Permit in Indonesia: Photocopy of the Business Identification Number (NIB). Photocopy of the Business Permit Letter (OSS). Application Submission Letter. Request Form (with stamp duty). Photocopy of the Building Permit (IMB). Photocopy of the ID Card of the Company’s Leader/Director. Company’s Taxpayer Identification Number (NPWP). Photocopy of the Company’s Articles of Association. Photocopy of UKL/UPL Documents. Industrial Business Permit Application For companies operating in the industrial sector, here are the steps that need to be fulfilled: Business operators must register IUI through the National Industrial Information System (SIINas). Business operators must obtain a statement letter from the relevant regulatory body if the business does not operate in an industrial zone. The business unit must undergo technical verification first. Business operators must report industrial data. In the technical verification stage, companies need to attach environmental and location permits following the current regulations. Exemption of Requirements In addition to the above requirements, there are exemptions to support micro, small, and medium-sized enterprises. Businesses at this scale do not need to provide a statement letter to pass the technical verification process but still need to attach an operational eligibility statement through SIINas. What Is Technical Verification? Technical verification is required when a company obtains an Industrial Business Permit. This stage is necessary so that the authorities can validate that the business operates in compliance with the regulations. The local government conducts technical verification and has now evolved into a field inspection phase under the latest laws. The business unit must meet several requirements to proceed with technical verification: Infrastructure and construction facilities are completed. Compliance with all obligations. Attachment of valid environmental and location permits. The technical verification process can be revisited if there are changes in the business, such as investment value, employee count, business expansion, relocation, or changes in business scale. Past Permits Since 2018, almost all business permit applications have been done through the Online Single Submission (OSS). Companies with an Industrial Business Permit before the OSS implementation peak must submit a notification to the authorities through OSS to keep their IUI valid as long as there are no changes in the provided information. To know more about the procedures for the licenses application, you can download here. Obtain Your Industrial Business Permit with InCorp Indonesia For professional consultations regarding the acquisition of Industrial Business Permits and expansion permits through OSS, selecting the appropriate business entity, and matters related to establishing a business in Indonesia, our team of professional consultants and legal specialists is ready to assist you. Contact us now by filling out the form below. We also have offices in Jakarta, Bali, Semarang, Batam, and Surabaya that you can visit to expedite the Industrial Business Permit application process in Indonesia. We are ready to answer your questions. Related article: International Expansion to Indonesia: Company Set Up Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. What is a PT PMDN? Limited liability company with 100% local/domestic direct investment Can investors own shares with preferential rights? Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period. Get in touch with us. Lead Form Updates Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses The Future of Manufacturing Industry in Semarang, Indonesia Read more EV Growth Opens Opportunities in the Mining Industry Read more The Complete Guide of Mergers & Acquisitions In Indonesia Read more