Risk-based Licensing OSS System Soft Launching

As the current business licensing regime comes to its end, the government is currently making preparations for the shift into the Risk-based Licensing system first introduced in Law No. 11 of 2020 dated November 2, 2020 on Job Creation (“the “Job Creation Law”).

The groundwork for this change has already been set through various implementing regulations such as Government Regulation No. 5 of 2021 dated February 2, 2021 on Implementation of Risk Based Licensing (“GR 4/2021”), Capital Investment Coordinating Board (“BKPM”) Regulation No. 4 of 2021 dated March 29, 2021 on Guidelines and Procedures for Risk-based Business Licensing Administration and Investment Facilities, and various other regulations. Now, the government is arranging for the introduction of Risk Based Licensing to the Online Single Submission (“OSS”) system.

To support the above, the Minister of Investment/Chairman of BKPM issued his Circular Letter No. 17 of 2021dated July 27, 2021 on the Shift of Business Licensing System to Risk-based Business Licensing through the OSS System (“CL 17/2021”). CL 17/2021 provides that the OSS Risk-based Licensing System will have its soft launching on August 2, 2021 at 06:00 WIB. To prepare for this launch, there are several things that business entities/potential business entities may want to take note of, as highlighted below:

  • The current OSS System (the OSS version 1.1) will be terminated on July 30, 2021 at 18:00 WIB in order to transfer data to the Risk Based Licensing OSS System. Applicants intending to make submissions are advised to do so before July 30, 2021, 00:00 WIB;
  • Business Entities are advised to settle their commitment fulfilment for the licenses they applied before July 30, 2021 00:00 WIB so that the OSS System may issue the relevant license by July 30, 2021 on 18:00 WIB.

Furthermore, at the time of the soft launch, 1,702 business activities classified under 1,349 KBLI will be ready and available for the risk-based business licensing process at the OSS. Another 353 KBLI is not yet regulated by GR 5/2021 so a decree from the BKPM is required. The government expects that the Risk-based Business Licensing OSS System will be fully operational by end of August 2021.

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July 30, 2021

Please contact Inka Kirana (ikirana@aksetlaw.com), N. Sekar Lestari (nlestari@aksetlaw.com) or Caleb K. N. Sitorus (csitorus@aksetlaw.com) for further information.

 

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