NEW Online Single Submission Risk-Based Approach (“OSS-RBA”) IS UP AND RUNNING

To implement the new “risk-based licensing system under the Indonesian “Omnibus Law”[1], the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) in August 2021 officially launched a new version of an online single submission (OSS) system, known as the OSS-RBA. “Risk-Based Licensing” is a supervision method of the Indonesian government to assess an issuance of license based on the level of its business and/or activity risk. This concept of “risk-based licensing” is introduced in order to give legal certainty for business players, including foreign investors in the licensing process as well as to expedite the business licensing application process.
[Please click here to read our previous article on the Omnibus Law and Risk-Based licensing]

What is OSS?

OSS is an electronically integrated business licensing system that is managed and organized by the OSS Institution (Ministry of Investment/BKPM of the Republic of Indonesia). The OSS RBA has replaced the previous OSS 1.1 system since August 4, 2021, and can be accessed through this link https://oss.go.id/ .

Difference between the OSS 1.1 and OSS RBA

Compared to the previous OSS 1.1, the OSS RBA is a more user-friendly and integrated online system, as it gives a better and more organized guidelines on the legal and licensing requirements to conduct business in Indonesia for companies/business practitioners, including foreign investors. The OSS RBA also shows requirements that apply to certain business classifications, the maximum foreign ownership of certain businesses, and the estimated timeline for a license application process.

Latest Update

Up to the date of this article, however, the OSS RBA is still encountering some glitches, including issues relating to data migration from the previous OSS 1.1. We understand that the Indonesian government is trying to fix all these glitches so that the system can function properly as planned. Therefore, it is important for companies to closely monitor the progress of the Indonesian government’s efforts in this respect.

For further information, please click the following link to view BKPM’s Frequently Asked Questions (FAQ) relating to the OSS RBA [OSS - Sistem Perizinan Berusaha Terintegrasi Secara Elektronik.] The Japanese translation of the FAQ prepared by the BKPM Japan desk can be accessed through this link https://oss.go.id/informasi/faq)

For further information on the above, please contact this form.

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[1]Government Regulation Number 5 of 2021 the risk-based assessment licensing.

The information provided in this article does not, and is not intended to, constitute legal advice and is for general informational purposes only. Readers of this article should contact an attorney to obtain advice with respect to any particular legal matter.