ONLINE SINGLE SUBMISSION
Indonesian Government enacted a new regulation, (i.e., Government Regulation No. 24 of 2018, regarding Integrated Electronic Licensing Services ("GR 24/2018")). Pursuant to this GR 24/2018, the administration of licensing in Indonesia will be undertaken by non-ministerial government agency that organizes the government affairs in the field of investment using an Online Single Submission ("OSS"). OSS will be the "one stop" online system for licenses handling which previously managed by various government ministries and agencies.
The purpose of GR 24/2018’s enactment is to harmonize, unite and facilitate the application of licenses in Indonesia. Based on GR 24/2018, the OSS shall be run by the agency that handles investment coordination affairs (which at time being is the area handled by Investment Coordinating Board / Badan Koordinasi Penanaman Modal or “BKPM”). Nevertheless, on a press release on 29 June 2018, BKPM informed that it will not be receiving and processing all licensing application as of 29 June 2018, and until further announcement, all licensing application under the OSS system shall be submitted to, and managed by, the Coordinating Ministry for Economic Affairs.
Types of licenses that can be accessed through OSS are among others, business license, commercial licenses, and operational licenses. Before applying for licenses, the entity, or the business owner (“Owner”) must register their business by accessing OSS system. Following to the business registration, the Owner will obtain a Business Entity Number / Nomor Induk Berusaha (“NIB”) consisting of encrypted 13 (thirteen) random digits number with electronic signature. NIB is a business identity and will be used by the Owner to obtain business license and commercial license or operational license. NIB shall be valid as long as the Owners perform the business.
NIB also serves as Company Registration Certificate, Import Identification Number and Customs Clearance. The Owner who have received NIB will be directly registered as participants of social health security and social security of employment.
Upon obtaining NIB, the Owner is allowed to commence the initial stage of business operation such as:
Changes in land area;
Construction of buildings and operations of the buildings which must be preceded by Environmental Plan (AMDAL) and/or technical plan of buildings construction;
Procurement of equipment or facilities;
Procurement of human resources;
Completion of certification or goodness;
Implementation of production trials; and/or
Implementation of production.
Any business license and commercial license already owned by the Owner shall remain valid and must be registered to the OSS system, and the Owner will receive NIB in accordance with its business field. All laws and regulations governing licensing services are declared valid as long as it does not conflict with GR 24/2018.
To learn more about OSS system, please do not hesitate to reach our lawyers or simply drop an email here.