Launched in July 2018, Indonesia’s Online Single Submission (OSS) system is a game-changer for businesses and investors.
This web-based platform streamlines the process of obtaining business permits and licensing. The goal is to significantly cut the heavy red tape and reduce the bureaucratic burden that previously hindered investment.
What Business Licenses We Can Get from OSS?
The OSS system goes beyond just initial business registration and obtaining the NIB (Nomor Induk Berusaha/Indonesia Business Identification Number). It acts as a one-stop service for a variety of business permits and licenses. Among others here are what you can obtain through OSS:
1. Business Classification: This refers to defining the industry sector and specific activities your business will undertake. It’s like a categorization that helps determine the relevant regulations and permits you need to comply with. The OSS system uses this classification to guide you towards the appropriate business permits.
2. Business Permits: These are the actual authorizations issued by the government that allow your business to operate legally and comply with specific regulations. The OSS system streamlines the application process for these permits based on your chosen business classification.
Here’s an analogy: Imagine a library with different sections for various subjects (business classification). To access specific information (business permits), you first need to identify the relevant section (classification) based on your research topic. The library catalog (OSS system) helps you locate the appropriate resources (permits) within the chosen section.
3. Non-Tax State Revenue (PNBP): Certain fees associated with business operations, like customs clearance or registration fees, can also be processed through the OSS system.
4. Any permits related to business location, such as Environmental Impact Analysis (AMDAL) and Approval of Conformity of Land Use Activities (PKKPR).
How to Use the OSS System?
Investors and entrepreneurs can register their businesses and apply for permits through the OSS portal https://oss.go.id/ . The process involves:
1. Registration: Create your account on the OSS website.
2. Business Information: Enter details about your business, including its structure, location, and industry sector.
3. Permit Application: Select the specific licenses and permits you need based on your business activities.
4. Document Upload: Upload the necessary documents as per the application requirements.
5. Submission and Approval: Submit your application electronically and track its status through the OSS platform.
Benefits of OSS System in Indonesia
The OSS is a centralized online portal that integrates various government levels from national agencies, provincial offices, and local municipalities. By eliminating the need to navigate various government agencies, the OSS system saves both time and resources for domestic and foreign investors.
As an illustration, imagine you start a culinary business by opening a fine dining restaurant in Jakarta. Before OSS, it took such a long and draining process to register your new business, to obtain a food hygiene certificate, spatial utilization permit, or perhaps to manage import licensing because you buy some raw foods from other countries.
The process used to involve visiting numerous government offices, each with its own set of forms, fees, and waiting periods. The OSS system transformed this scenario. Now you can submit all applications online through a single platform.
Besides less administrative burden, investors and entrepreneurs are also entitled to experience other benefits after their business operation is running. For example, they can apply to OSS to get some incentives and facilities like tax allowances or relaxation of import duties.
OSS System Helps Business Compliance
Your business grows and changes over time, and the OSS system makes it easy to keep your information up-to-date. This means if your company gets reorganized, adds new business activities, or experiences any other major changes like a name change or new owners, you should promptly report these updates through the OSS platform.
OSS makes getting permits and licensing way easier, but things can still get a bit tricky. As your local support, Seven Stones Indonesia is ready to assist you to meet legal compliance.
Our professional experts are familiar with the regulations. See our contact form below and reach out to Seven Stones today to discuss what you need regarding business.
This process helps keep things clear, honest and transparent and makes sure your business licenses stay valid. By keeping your OSS info updated, you avoid any problems and show that you’re running a responsible business (good corporate governance).
