Online Single Submission (OSS) System
The government of Indonesia issued a new regulation namely Government Regulation Number 24 of the year 2018 concerning the Electronic Single Submission System (Online Single Submission or OSS).
This regulation set forth a new system for business license applications. The government aims this system in order to help the businessmen process and establish their business in an easier way.
Here glance information about the Electronic Single Submission System (Online Single Submission or OSS) in Indonesia.
Online Single Submission (OSS) System: An Easy Way for Business Licensing Process in Indonesia
We notice that Indonesia regulations subject to frequent changes according to the people’s condition itself, especially the regulation concerning business and investment. Before the application of the Electronic Single Submission System (Online Single Submission or OSS) was announced, there were many processes to obtain permits for a businessman to start their business in Indonesia. The name of such permits also different in each regulation, although the institution whose issues are the same, namely; Badan Koordinasi Penanaman Modal (Investment Coordination Board). However, we do understand the government does this is to make the process of doing business in Indonesia to be in better ways.
After approximately a year since the OSS was announced, the system is now much better to be accessed. This is as expected by the government for doing business in Indonesia is hassle-free. Therefore, according to the current OSS System, the businessmen should make an account to apply for the basic business license. For the PT PMA or PT PMDN itself, the OSS system will check the validity of the company based on the deed of establishment taken from data on the AHU Online system.
Once a businessman registers their company to Electronic Single Submission System (Online Single Submission or OSS), its company’s legal basis (the deed of establishment) will appear on its OSS account and after that, we may continue the process the permits on OSS. In addition, almost all government agencies related to business and investment have been integrated in the OSS system, including BJPS Health or Manpower, Directorate General of Taxes, LKPM (Investment Activity Report), and so on.
Thus, the arrangement of documents related to this becomes even easier.
Generally, there are some new licenses that are required in OSS such as location licenses (izin lokasi), business license (izin usaha), and operational or commercial license (izin operational or komersial).
More away, through OSS System, the company can request a Single Business Number (NIB). According to the current system, every business entity (foreign or local) must have a NIB which also applicable as a Certificate of Company Registration (TDP), Importer Identification Number (API), and custom access. This NIB has a similar function as Principal Permit (in the previous regulation) and it is a mandatory document to process all the licenses through OSS.
After the company gets NIB, it can be continued to request basic licenses for the company to start to operate through OSS System, such as:
1. Location Permit (Izin Lokasi)
OSS will issue a Location Permit for the company if the company has submitted the location permit such as Building Construction Permit (IMB) or any other location permits related from the local government.
2. Environmental Permit (Izin Lingkungan)
Environmental Permit that is issued from OSS will be related to the environmental permits that the company has obtained from the local governments. It can be AMDAL (Analisa Mengenai Dampak Lingkungan), UKL-UPL (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup) or SPPL (Surat Pernyataan Pengelolaan Lingkungan). Contact us to get detailed information about the difference between these three.
3. Business License (Izin Usaha)
Business License from OSS is a permit to start a business and or activities until before the conduct of commercial or operational. There are two types of business licenses from OSS that would be given to the company; (1) the business license that has not effective yet, and (2) the business license that has been effective. Although both types of these business licenses are allowed, however, there is a slight difference in the advantages given to the business license holders that have not been effective yet and the business license that has been effective, it is related to the use of this permits in the company’s operational processes. Nevertheless, in the end, all business license needs to be effective to get a full advantage from governments related.
In order to obtain an effective Business License, the businessmen should meet the requirements or commitments related to their business. The commitments may differ for each company according to the business field, however, there are some basic commitments, such:
»Building Construction Permit;
»Environmental Permits (can be UKL or UPL, AMDAL or SPPL in accordance to the business field); and
4. Commercial Permit (Izin Komersil)
Commercial Permit is a permit issued by OSS after businessmen get the Business Permit and the purpose is to conduct commercial activities or operational by fulfilling the requirements and or commitments.
Furthermore to continue the information of the permits on OSS, apparently, each permit that issued by OSS will have status effective or in-effective (especially business license and commercial permit).
If the permit’s status has been effective, then such permits have finished being processed.
However, if the permit’s status has not been effective yet, then we have to fulfill the commitment to make it effective.
The OSS system determines automatically what commitments must be fulfilled to make the in-effective permit to be effective according to the current regulation. Once the permit from OSS has been effective,
it will be valid as long as the company operating and as long as it is not otherwise determined by Indonesian Law. The fulfillment of the commitment in each permit will be considered based on the business activity of the company, and the local regulation of the region.
Indo-Ned Consultancy is one of a business consultant in Indonesia that provide service for your need in regard to all permits through OSS System. Our team will always able to help each of your business processes. Our team always provides the latest regulations that apply in Indonesia so that you will feel comfortable when doing business in Indonesia. We always give the best advice and solutions for your business in Indonesia and we will guide you to set up your company in Indonesia. If you need assistance and more information feel free to contact us anytime.
The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.