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In 2018, the Government issued Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services ("GR No. 24/2018"), which established the Online Single Submission ("OSS") portal. The OSS system integrates the process of applying for multiple regulatory permits in one place and is aimed at providing businesses with a one-stop shop with a 24/7 service for receiving all clearances. The licenses and permits that can be granted via the OSS portal include the social security programs (BPJS), location permits, environmental license, building construction permit (IMB) and foreign employees utilization plan (RPTKA). After its establishment, the OSS portal was spearheaded by the Coordinating Ministry for Economic Affairs ("CMEA").
On 21 December 2018, the CMEA issued Letter No. S-389/M.EKON/12/2018, which confirmed the transfer of the implementation of the OSS system from CMEA to the Investment Coordinating Board ("BKPM"). This included the operational aspect of business licenses and permits service, and the OSS system itself. As such, from 2 January 2019 onwards, the BKPM is operating the services for business licenses and permits in the forms of:
The transfer will improve the OSS system in the long run as the BKPM has the technical expertise on investment. The BKPM has already started a working group to analyse the problem arising out of the implementation of OSS system with objectives to issue a new OSS regulation and to update the system periodically.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Assegaf Hamzah & Partners
Jakarta Office
Level 36 & 37, Capital Place
Jalan Jenderal Gatot Subroto Kav 18
Jakarta 12710, Indonesia
Surabaya Office
Pakuwon Center, Superblok Tunjungan City
Lantai 11, Unit 08
Jalan Embong Malang No. 1, 3, 5,
Surabaya 60261, Indonesia
http://id.rajahtannasia.com
Contacts: Bono Daru AdjiSenior PartnerD +62 21 2555 7800 F +62 21 2555 7899 bono.adji@ahp.co.idAhmad Fikri AssegafSenior Partner/Co-FounderD +62 21 2555 7800 F +62 21 2555 7899 ahmad.assegaf@ahp.co.idChandra M HamzahPartnerD +62 21 2555 7800 F +62 21 2555 7899 chandra.hamzah@ahp.co.idEri HertiawanPartnerD +62 21 2555 7800 F +62 21 2555 7899 eri.hertiawan@ahp.co.idIbrahim Sjarief AssegafManaging PartnerD +62 21 2555 7800 F +62 21 2555 7899 ibrahim.assegaf@ahp.co.id
Rajah & Tann Singapore LLPContacts: Hamidul HaqPartnerD +65 62320398hamidul.haq@rajahtann.comPaul NgPartnerD +65 62320429paul.ng@rajahtann.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. |
This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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