Indonesia’s Online Single Submission (OSS) system has revolutionized the way businesses, both local and foreign, obtain necessary licenses. Introduced as part of the government’s initiative to streamline regulations and boost investment, the OSS-Risk Based Approach (OSS-RBA) simplifies the licensing process, ensuring faster approval and better coordination between businesses and authorities.
Whether you’re starting a new company or managing an existing one, the OSS provides a one-stop solution for handling all your legal permits.
What is OSS in Indonesia?
The Online Single Submission (OSS) in Indonesia, also known as the OSS-Risk Based Approach (OSS-RBA), is an integrated electronic licensing system that simplifies the process of obtaining business licenses for entrepreneurs and companies operating in Indonesia. This web-based platform is designed to streamline the issuance of business licenses based on the risk level of the business activity. It allows businesses, both local and foreign, to efficiently start and manage their operations by accessing the system at https://oss.go.id.
Also read: Can a Foreigner Own 100% of a Business in Indonesia?
OSS and the Omnibus Law on Job Creation
The implementation of OSS is part of Indonesia’s Omnibus Law (Law No. 11 of 2020 on Job Creation), which aims to boost investment by simplifying the regulatory landscape. OSS is mandatory for all businesses, including those run by Ministries/Agencies, Regional Governments, Special Economic Zone Administrators, and Free Trade Zone Administrators. It helps these entities manage the risk assessment of business activities.
Also read: Starting a Business Partnership in Indonesia: A Foreigner’s Guide
Risk-Based Licensing System
Under the Government Regulation No. 5 of 2021, the OSS-RBA classifies business activities into four risk levels:
- Low-risk
- Medium-low risk
- Medium-high risk
- High-risk
The risk level of each business activity dictates the type of license required. As of now, 1,349 business classifications (KBLI) are already incorporated into the OSS-RBA system, covering 1,702 different business activities.
Also read: Risk-Based Business Licensing and OSS System in Indonesia
How OSS Benefits Businesses
The OSS platform facilitates several key services for businesses, such as:
- Issuing business licenses based on varying levels of risk.
- Issuing business licenses for micro and small enterprises (UMKM).
- Providing licenses to support business operations.
- Managing business developments such as mergers, consolidations, and liquidations.
The system allows entrepreneurs to quickly and securely acquire the necessary licenses to operate their businesses legally in Indonesia.
Also read: 7 Reasons and Advantages for Starting a Business in Indonesia
How to Register on OSS
If you’re a foreign entrepreneur or business seeking to register your company in Indonesia, you will need to obtain access to the OSS system by following these steps:
- Visit the OSS website at https://oss.go.id and click “Register” in the top right corner.
- Choose the business scale (such as Micro and Small Enterprises – UMKM) and click “Next” to continue.
- Select the type of business entity, such as Individual or Business Entity, and fill in the registration form.
- Verify your data via WhatsApp or Email.
- Complete the profile information and submit your registration.
Once registered, you will receive a Business Identification Number (NIB), which serves as your business’s unique identity and a legal document allowing you to conduct business activities in Indonesia.
Simplifying Licensing for All Types of Businesses
OSS benefits businesses of all sizes, from micro to large-scale enterprises, and supports both domestic and foreign-invested businesses. The platform covers businesses with fully domestic capital and those with foreign ownership.
Additionally, OSS helps businesses handle various types of permits, such as location permits, environmental permits, and building permits. It also supports operational permits required for specific business activities, whether at the national or regional level. The system connects businesses with relevant stakeholders, allowing for faster, more secure, and real-time approval of licenses.
Furthermore, the platform enables businesses to store all their licensing data under one Business Identification Number (NIB), making it easier to manage business documentation.
Also read: Exploring the Types of Business Licenses in Indonesia
Key Requirements for OSS Registration
To register your business through OSS, you will need the following:
- National Identity Number (NIK) for individual entrepreneurs or for the company’s responsible person (for business entities).
- If your business is a legal entity, it must first be registered with the Ministry of Law and Human Rights (AHU Online).
- State-owned enterprises, public service agencies, and other legal entities must have their legal formation documents prepared before registering.
Stay Compliant with Indonesia’s Legal Framework
For foreign companies and entrepreneurs looking to establish a business in Indonesia, the OSS-RBA system is a crucial tool for navigating the legal landscape. By using OSS, you can simplify the process of obtaining all necessary licenses, ensuring that your business operates legally and efficiently.
It’s crucial to ensure that your business adheres to all legal regulations when setting up in Indonesia. This includes obtaining the correct licenses and adhering to the regulations outlined by the Indonesian government. Failing to do so can result in delays, penalties, or even the cancellation of business operations.
To ensure your business is fully compliant, consider seeking professional advice or legal assistance. InvestinAsia is among the companies that specialize in aiding you with company set up in Indonesia. We boast a team of seasoned experts who can guide you throughout the process of:
- Foreign PMA registration in Indonesia
- Representative office registration in Indonesia
- Indonesia Local PT registration
- Indonesian Virtual office rent
- Indonesia Business registration number
- Business Licenses in Indonesia
- Trademark Registration in Indonesia
- Franchise License in Indonesia
If you are interested in starting a business and investment in Indonesia, you can start by contacting us for FREE consultation.
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