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:
- 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.
- 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.
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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.
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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.
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