The Investment Coordinating Board (BKPM) will implement risk-based business licensing electronically through the Online Single Submission (OSS) system. BKPM Head Bahlil Lahadalia said the implementation of the new system would be officially launched in July 2021. Provisions regarding risk-based OSS are contained in Government Regulation (PP) Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing. Based on the regulation, Norms, Standards, Procedures and Criteria (NSPK) for risk-based business licensing in OSS is the single reference for the central government, local governments and business actors.
Before being launched, BKPM will conduct a trial process from March to June. The new system is mandated by the Job Creation Law. "We have agreed that July will proceed," he said in a virtual press conference at his office, Jakarta, Tuesday (24/2). The OSS system must be used by ministries / agencies, local governments, administrators of Special Economic Zones (KEK), Free Trade and Free Port Zones (KPBPB), and business actors.
Later, the OSS system will be divided into three subsystems, namely the information service subsystem, business licensing, and supervision. Then, integrated supervision will be carried out with ministries / agencies, local governments, KEK, and KPBPB. The business licensing process will also depend on the risks. In detail, a business license with a low risk is sufficient to use a Business Identification Number (NIB). Meanwhile, a medium-low risk business license requires an NIB, standard certificate and self-declare. Medium high risk permits require an NIB, self-declare, and verification. Meanwhile, high risk requires an NIB, permission, and self-declare. Bahlil said that the OSS system is considered to be a solution for entrepreneurs because it can cut bureaucracy, is transparent, fast, and easy. "This is the answer to the complaints of entrepreneurs who say that taking care of old permits, meeting with officials is difficult, expensive, it is so slow," said the former Chairman of the Indonesian Young Entrepreneurs Association (HIPMI). Coordinating Minister for the Economy Airlangga Hartarto hopes that this new system can provide business certainty. Moreover, this is a direct order from President Joko Widodo. "So that licensing will be easier and faster, and supervision will be more optimal," said Airlangga in an official statement on Friday (20/11).
