Online Single Submission (OSS)

By: A.M Oktarina Counsellor at Law

Drafted by: Baniadhipati Nandiwardhana Pasaribu

Reviewed by: Noverisky Tri Putra Pasaribu, S.H., LL.M (Adv).

The Indonesian Government plans to strengthen the national economy by simplifying the procedure of business establishment and business license/permit in order the boost the investment throughout Indonesia, also as the implementation of the Government commitment to raise Indonesia’s position in Ease of Doing Business Index. One of the solutions is the implementation of Online Single Submission or generally called with the acronym OSS is a licensing application which was launched by the Indonesian Government in 8^th of July 2018 to replace the One Stop Service system by Badan Koordinasi Penanaman Modal or generally called with the acronym of BKPM.

OSS was first mentioned in the presidential regulation Number 91 Year 2017 which was then the implementation was regulated in Governmental Regulation Number 2 Year 2018, The government evaluated the One Stop Service system to be ineffective and unfavourable for attracting direct investment because of the unsynchronized ministry regulations with the presidential regulation and the reluctance of the regional government. The OSS will be served as an online integrated system as to simplify the process of Business Establishment and Business Licensing.

The OSS is also electronically integrated with all the ministry and institution, even the regional government as the effort to increase the economical development by simplifying the bureaucracy chain which becomes the main problem for the complainant (entrepreneurs) for the business license. Before OSS was implemented, the complainant (entrepreneurs) for the business license need to go to the authorized ministry/institution, even regional government to administer the license one by one. OSS would provide the complainant for the business license to start the production process simultaneously with complementing the documents needed such as the location permission, and permission to build. Under the Governmental Regulation Number 24 of 2008, it divides the business license into two types: a. Business Permit and b. Commercial or Operational Permits, which either Individual and Business Entity could obtain the license.

Procedure of license submission through OSS is regulated in the Governmental Regulation Number 24 the year 2018, according to Article 20 it is stated that the Implementation of Business Licencing in OSS comprise of:

1. Registration,
2. Issuance of Business Permit and issuance of Commercial or Operational Permit based on commitment,
3. Fulfilment of Business Permit commitments and fulfilment of Commercial or Operational Permit commitments.
4. Payment of fees,
5. Facilitation,
6. Period of validation,
7. Supervision.¹

As retrieved from the OSS official website, the procedure to access the OSS are as follows:

1. Register the OSS User, the registration for a legal entity at least includes:
   1. thename and/or the number of deeds of establishment of the company and registration number,
   2. Type of business activities,
   3. types of investment,
   4. country of origin of Investment (if there is any Foreign Direct Investment),
   5. location of investment,
   6. the amount of investment plan,
   7. planned use of labour,
   8. contact number of companies,
   9. planned submission of facilities,
   10. Company’s NPWP,
   11. NIK of the company’s person in charge.
2. Registration of Legality, the registration of legality requires the documents regarding the establishment of legal entity;
3. The issuance of NIB or Nomor Induk Berusaha the NIB will be use as the Business / Company identity within the OSS system, Company Registration (Tanda Daftar Perusahaan), Importers Identification Number (Angka Pengenal Impor) and Custom Access (Akses Kepabeanan);²
4. Registration of Business Activities / Projects, further, the issuance of Business Permit commitments and fulfilment of Commercial or Operational Permit commitments will follow;
5. The Commercial and Operational Permit Issuance based on commitments;
6. The submission of facilities such as Tax Holiday, Tax Allowance, etc.³

Furthermore, OSS also covers the submission of RPTKA or Rencana Penggunan Tenaga Kerja Asing. According to the BKPM Regulation No. 5 of 2019, if there are any amendments in the Register of Shareholders, the company have the obligation to change the data within the OSS System. The newest version of OSS was released on 1^st January 2020, OSS 1.1 replacing OSS 1.0. The updated version of OSS shows a significant difference compared to the older version, which makes the system to be more efficient and user – friendly.

For further information regarding the OSS, you may check directly to the OSS Official Link as attached: https://oss.go.id/portal/

Footnotes

¹ Governmental Regulation Number 24 Year 2018
² Indonesia.go.id/layanan/investasi/social/perizinan-berusaha-melalui-oss
³ oss.go.id/portal/