By: Evoryo Carel Prabhata S.H.
Hello, Selaras Group Friends!
Investment activities carried out by domestic and domestic investors must comply with certain terms and conditions in order to be able to invest in Indonesia.
Currently, the Indonesian government has implemented new provisions in addition to Law Number 25 of 2007 concerning Investment for investors before starting investment activities in Indonesia.
Read more: Investment in Indonesia 101.
The regulation worth noting is Government Regulation 5/2021 concerning the Implementation of Risk-Based Business Licensing. Basically, this made business licensing in Indonesia enter a new stage in its history. At present, business licenses in Indonesia are required to register on the OSS-RBA website.
The OSS-RBA is one of the products of the mandate in articles 6 and 7 of Law Number 11 of 2020 concerning Job Creation which explains that enhancing the investment ecosystem and business activities in Indonesia. One of which includes the application of risk-based business licensing.
Business licensing will be carried out based on the level of risks and business scale ranking of business activities from low risk to high risk business activities. This is done to simplify business licensing in Indonesia and increase the amount of investment and business activities in Indonesia.
However, the provisions regarding the registration of business licenses through the OSS-RBA is a new policy that must be continuously developed and evaluated so that investors who have complied with these provisions receive legal protection in carrying out their business activities, especially foreign investors.
OSS-RBA or Online Single Submission Risk Based Approach is an application that is formed based on Government Regulation 5/2021 concerning Implementation of Risk-Based Business Licensing.
This system intended to simplify and speed up the business licensing process. This application exists to answer the problems of a slow bureaucracy and the inefficiency of filing business activities in Indonesia carried out by domestic investors and foreign investors.
The Importance of OSS-RBA
To obtain the issuance of a business license, business actors must register through the OSS-RBA website with the requirement that Indonesian citizens have a Resident Identification Number and foreign nationals can use their passport number to create an account on the OSS-RBA website.
After that, the investor must enter the line of business and the value of the investment that will be made by him. After the system has obtained all investor data, the system will issue an NIB (Business Permit Number). Notification will be given to each authorized government agency as business issuer and if verification is required, the competent government agency will verify the suitability of the business
Business actors who are at low risk of business actors only need to register in the OSS RBA system to obtain an NIB. Meanwhile, medium-low risk scales can apply for business permits through OSS-RBA and must obtain NIB and standard certificates.
A standard certificate is a legality to carry out business activities in the form of a business actor’s statement to meet business standards in the context of carrying out business activities
Other Important Notes
Foreign investors must also pay attention to the following regulations, such as:
- Investment Negative List regulated in Presidential Regulation No. 39 of 2014 concerning List of Closed Business Fields and Open Business Fields with Requirements in the Investment Sector
- The Standard Classification of Indonesian Business Fields (KBLI) is regulated by Regulation of the Head of the Central Bureau of Statistics No. 57 of 2009 concerning Standard Classification of Business Fields. This regulation explains in detail the scope of each business sector based on their KBLI number. This regulation is important for foreign investors to check whether their business is included in the Negative Investment List or not
- Guidelines and procedures for licensing and non-licensing foreign investment in Indonesia, which are regulated by the regulation of the head of the Indonesian Investment Coordinating Board (BKPM), No. 5 of 2013 which has been amended by BKPM regulation no. 12 of 2013 concerning Guidelines and Procedures for Investment Licensing and Non-Licensing (“Perka BKPM”).
- Procedures and criteria related to the form of PT PMA in Indonesia required by BKPM.
- The Limited Liability Company Law governing the general requirements of a limited liability company which also applies to newly established PT PMA to comply.
The overall OSS-RBA mechanism aims to simplify foreign and domestic businesses licensing. However, it could be a hassle especially as mentioned above. We can make it simple for you!
David Kairupan S, Aspek Hukum Penanaman Modal Asing Di Indonesia (Prenada Media 2014).
Marzuki PM and SH M, Pengantar Ilmu Hukum (Prenada Media 2021).
Simbolon NY and others, ‘Perlindungan Hukum Bagi Penanaman Modal Asing (PMA) Di Indonesia’ (2020) 28 Jurnal Darma Agung 64.