Indonesia’s Online Single Submission (OSS) system is the official digital gateway for businesses to access a range of investment incentives. Whether you’re a foreign investor or establishing a new venture, applying through OSS is the key to unlocking tax holidays, allowances, and other fiscal and non-fiscal benefits.
Also read: Why Indonesia Remains an Attractive Foreign Investment Destination in 2025
Overview: Understanding the OSS System and Its Importance
The OSS system streamlines business licensing in Indonesia. For investors, this system serves as the single window to apply for government incentives. These range from income tax holidays and tax allowances to sector-specific exemptions in KEK or IKN.
Read the guide here: OSS in Indonesia: A Guide for Foreign Companies
Types of Investment Incentives Available via OSS
Tax Holiday
This incentive provides full or partial Corporate Income Tax (CIT) exemptions for investments in pioneer industries such as digital tech, energy, and manufacturing.
Eligibility Criteria:
- Investment above IDR 100 billion
- Operates in qualified pioneer sectors
- Indonesian-registered legal entity
- DER compliance based on PMK 169/2015
- Submission within one year of license issuance
Duration:
- 5–20 years depending on investment value
- Additional 2-year partial relief post-period
Also read; Tax Holiday in Indonesia: A Comprehensive Guide for Foreign Investors
Tax Allowance
This scheme provides partial income tax deductions and accelerated depreciation.
Eligibility Criteria:
- High employment generation (≥300 local workers)
- High local content usage
- Located in priority sectors like agriculture, digital economy, or manufacturing
Key Benefits:
- 30% net income reduction over 6 years
- Accelerated depreciation and amortization
- Dividend withholding tax capped at 10%
- Loss carryforward for up to 10 years
Also read: Tax Allowance in Indonesia: A Key Investment Incentive
Super Deduction for R&D and Training
Eligible R&D activities can receive tax deductions of up to 300%, while vocational training expenses may qualify for up to 200% deductions. Application requires a detailed proposal via OSS, including partnerships with local institutions.
Also read: Understanding Indonesia’s Super Deduction Tax for R&D and Training
Regional Incentives (KEK & IKN)
Special Economic Zones (KEK)
Offer tax holidays, VAT and duty exemptions, and foreign ownership up to 100% in certain sectors. Read the full guide here: Indonesia’s Special Economic Zones (SEZs): A Complete Guide
Ibu Kota Nusantara (IKN)
- 100% Corporate Tax relief for 10 years
- Extended land rights (up to 95 years)
- VAT and luxury tax exemptions
- Special licensing and immigration facilitation
Also read: Indonesia Investment Incentives: Government Support for Foreign Businesses
Step-by-Step: Applying for Incentives Through OSS
Step 1: Register on the OSS Portal
Go to oss.go.id and sign up with your business details. Obtain a Business Identification Number (NIB).
Step 2: Select Incentive Type
From the dashboard, go to “Facilities” and choose the relevant incentive: Tax Holiday, Tax Allowance, or others.
Step 3: Submit Required Documents
Prepare and upload:
- Articles of association and NIB
- Fixed asset investment plan
- Debt-to-equity ratio analysis
- Business plan and feasibility study
- Tax compliance certificates
Step 4: Verification and Review
BKPM and the Ministry of Finance will evaluate your application. The process includes:
- Admin check for documentation
- Sectoral review based on KBLI codes
- Potential business presentation for large projects
Step 5: Post-Approval Obligations
Once approved, companies must:
- Submit quarterly LKPM (investment realization reports)
- Adhere to employment and production commitments
- Undergo audits by tax authorities
- Reapply or report to extend benefits as needed
Also read: Risk-Based Business Licensing and OSS System in Indonesia
Tips to Maximize Success
- Submit early—preferably before production begins
- Use correct KBLI codes for eligibility
- Engage consultants for accurate document preparation
- Explore region-specific incentives available in KEK or IKN to maximize potential advantages.
- Be audit-ready by ensuring all investment records are clear, accurate, and consistently updated.
Applying for investment incentives in Indonesia through OSS unlocks major financial and operational advantages—especially in strategic sectors like energy, digital, and infrastructure. By understanding eligibility, preparing documents properly, and utilizing OSS efficiently, investors can significantly enhance project feasibility and long-term ROI.
If you are considering starting a business in Indonesia, there are a number of resources and support services available to help you get started.
InvestinAsia is among the companies that specialize in aiding you with Indonesia company registration. We boast a team of seasoned experts who can guide you throughout the process of:
- Foreign company / PMA registration in Indonesia
- Indonesia representative office registration
- PT PMDN Set Up
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses
- Indonesia Trademark Registration
- Indonesia Tax Consultant and Compliance Services
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
FAQs
Who is eligible to apply through OSS?
Any legally registered business in Indonesia, including foreign-owned (PMA) entities, with compliant documentation.
Can I apply for multiple incentives at once?
Yes, but applications for Tax Holiday and Tax Allowance must follow separate procedures.
How long does approval take?
Typically 30–90 working days, depending on documentation and review cycles.
Are there tax incentives for green investments?
Yes. Renewable energy and sustainable infrastructure are top-priority sectors with expanded benefits.
What happens if I don’t meet post-approval obligations?
Failure to comply may result in revocation of incentives and repayment of tax benefits.
