Updated: Oct 11, 2022
As part of the commitment of Government of Republic of Indonesia to improve the ease of doing business in Indonesia, the Government has enacted new Government Regulation No. 24 of 2018 on Integrated Business License Services through Electronic System dated 21 June 2018 (GR 24/2018). New licensing application is introduced, namely Online Single Submission (OSS), replacing the One Stop Services system by BKPM. At the moment, the OSS system will be operated by the Coordinating Ministry of Economic Affairs.
Under GR 24/2018, there are two type of licenses shall be owned by business players, namely business license and commercial/operational license. Business players (from many various sectors) shall obtain business license when they want to run the business activities but prior to entering commercial or production stage. Whereas, the commercial/operational license shall be obtained once the business players own business license and are about to start the commercial or production stage.
When the business players intend to apply those licenses, business players shall firstly register in the OSS system along with submission certain required data and information. Once they have registered, they will receive Business Identification Number (Nomor Induk Berusaha or "NIB"), which will be valid indefinitely to the extent that the business players still perform their business activities in compliance with the prevailing laws.
Below is the flow chart of licensing process in the OSS system:
NIB will be functioned as (a) Investment Registration (Pendaftaran Penanaman Modal), (b) a Company Registration Certificate (Tanda Daftar Perusahaan/TDP), (c) an Importer Identification Number (Angka Pengenal Importir/API), and (d) a customs access right. Therefore, business players will no longer be required to obtain each of four licenses separately. In addition, business players with NIB will also be automatically registered as healthcare and manpower social security participants (or known as BPJS Kesehatan and BPJS Ketenagakerjaan).
As regards business license and commercial/operational license, the OSS Agency will issue those licenses once the business players have fulfilled its commitments (by way of submitting certain required documents) and paid the administration fee. The amount of administration fee is subject to the regulation of each sector. However, the GR 24/2018 is silent on how long the OSS Agency will issue the licenses. We have conducted consultation to the officers of Coordinating Ministry of Economic Affairs to clarify these uncertain matters however, since OSS system is new, the officers could not provide any clarification.
Any existing licenses issued by the Government prior to GR 24/2018 will remain valid. However, any amendment or expansion to the business license and commercial/operational license shall follow requirements under GR 24/2018 and be applied to the OSS system.
Upon the issuance of GR 24/2018, BKPM has suspended all processing and issuance of licenses as of 29 June 2018. Unfortunately, the OSS system has not yet been launched as well. Through its press release, BKPM has announced that all licenses application will still be received, however the assessment and issuance process will be commenced once the OSS system is active. Although under the new regime of OSS, the licensing application is expected to be easier and less complexity, delayed licensing process might be occurred during this transition period.