OSS RBA: A New Electronically Integrated Business Licensing System in Indonesia

In August 2021, the President of the Republic of Indonesia, Joko Widodo launched an Online Single Submission – Risk Based Approach, known as “OSS RBA” as an implementation of Law Number 11 of 2020 on Job Creation, which was recently amended to Law Number 6 of 2023 on Job Creation (“Job Creation Law“), with the implementing regulations for OSS-RBA as follows:

• Government Regulation Number 5 of 2021 on Implementation of Risk-Based Business Licensing (“GR No.5/2021”);
• Investment Coordinating Board / BKPM Regulation Number 3 of 2021 on Electronically Integrated Risk-Based Business Licensing System;
• BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Capital Investment Facilities; and 
• BKPM Regulation Number 5 of 2021 on Guidelines and Procedures for Supervising Risk-Based Business Licensing

Given the existence of OSS-RBA, the business licensing system, related to information services concerning business licensing, applying for business permits for main business activities and supporting activities of companies, and licensing supervision are integrated and able to be carried out through 1 (one) same system.

OSS-RBA itself will process business permits based on the level of risks and scales of business activities which have been categorized as set out in GR No. 5/2021. The OSS-RBA services include the following business sectors:

1. Marine and fisheries;
2. Agriculture;
3. Environment and Forestry;
4. Energy and Mineral Resources;
5. Nuclear power;
6. Industry;
7. Trade;
8. Public Works and Public Housing;
9. Marine and fisheries;
10. Transportation;
11. Health, Medicine and Food;
12. Education and Culture;
13. Tourism;
14. Religion;
15. Post, telecommunications, broadcasting, as well as electronic systems and transactions;
16. Defense and security;
17. Employment; and
18. Finance.¹

INFORMATION SERVICES SUBSYSTEM 

The OSS-RBA services can be accessed via the website oss.go.id, which shall provide an information submenu to assist people in using and operating OSS consists of the following: 

1. General Information about Licensing;
2. Complaint Service;
3. OSS Dictionary;
4. OSS User Manual;
5. FAQs; and
6. Licensing Simulation

In the information service subsystem, if people have problems in operating OSS-RBA, they may use the following methods which are provided by OSS-RBA:

1. Knowledge base, namely by conducting research on the information included in the OSS system and its regulations;
2. Online Consultation basis, in which regional OSS and PTSP Institutions have created social media or an integrated contact system that can be contacted and asked for guidance, such as via call center, email or WhatsApp number; and
3. Offline consultation basis, in which we can communicate directly with the stakeholders implementing OSS to deal with and resolve the obstacles faced in using OSS RBA through direct consultation. 

ISSUANCE OF BUSINESS PERMITS

OSS-RBA has the authority to issue business permits in the business sectors to which it has delegated authority. The business permits issued by OSS RBA consist of the following: 

1. Basic Requirements for Business Permits 

The Basic Requirements for Business Permits after the Job Creation Law consist of 3 permits, namely: 

• Suitability of Space Utilization Activities (KKPR);
• Environmental Approval; and
• Building Approval (PBG) and Functional Worthiness Certificate. 

These basic requirements must be fulfilled by each business actor in accordance with the business activity and/or Indonesian Business Field Standard Classification (KBLI) of the business actor.

2. Risk-Based Business Permits; and 

Apart from the basic requirements above, the licensing that must be fulfilled by each business actor is Risk-Based Business Permits. Risk-Based Business Permits is adjusted to the Indonesian Business Field Standard Classification (KBLI) for each business field, the risks of which are included in the KBLI for each business field as follows:

3. Business Permits to Support Business Activities (PB UMKU)

Business Permits to Support Business Activities (PB UMKU) are required for business activities and/or products during the operational and/or commercial stages. The types of PB UMKU vary, consisting of, among others, Permits, Approvals, Stipulations, Legalizations, Appointments, Registrations, Recommendations, Certificates, Certifications, Consultations and Certificates.

PB UMKU that can be obtained through OSS RBA is usually in the form of a non-transactional business permit. Meanwhile, transactional PB UMKU currently still has to be obtained from the institution/agency that oversees the business activities, for example flying permits for planes, pilots and flight attendants, the permits of which can be obtained from and issued by the Ministry of Transportation.

SUPERVISION 

The OSS RBA services also accommodate supervision of capital implementation for business actors who have obtained business permits, which is carried out in accordance with the level of business risks. This supervision is carried out based on the level of business risks of the business actors.   

The types of supervision are broadly divided into 2 (two) types, namely: routine supervision, namely scheduled and planned supervision such as periodic reports to the OSS RBA services or field inspections, and incidental supervision that is a type of supervision carried out at any time without notification.

1. Investment Coordinating Board / BKPM Regulation Number 3 of 2021 on Electronically Integrated Risk-Based Business Licensing System, BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Capital Investment Facilities