“OSS Version 1.1 improves the system including the ability to process water location permit and ocean location permit, register KPPA (general representative office), revocation of license for a non-liquidation reason, arrange issuance branch office administration registration, submit LKPM, and arrange business license for Merger. The new version will be implemented by 11 November 2019.”
In June 2018, the Government launched an integrated permits processing system called Online Single Submission (OSS) with Government Regulation No. 24 of 2018. OSS has greatly changed Indonesian licensing procedures. Indonesian Investment Coordinating Board (BKPM) decided to change the system from OSS version 1.0 into OSS version 1.1 on 11 November 2019 based on BKPM Official Announcement No.5814/A.8/B.1/2019 dated 31 October 2019. Despite the naming, it is not an upgrade to the current system but rather a new improved system launched to replace the current one. The data stored in version 1.0 will be migrated to version 1.1 on 11 November 2019, so users can keep using their old account. Afterwards, OSS version 1.0 will no longer be usable. According to BKPM Circular Letter No. 5743/A.8/B.1/2019, Version 1.1 will bring many new features and upgrades, which in general can be divided into the followings:
Improvement on Services
Although it was meant to simplify permit processing, back in version 1.0 there were some limitations on the utility. Although it is still possible to process most permits, these limitations did create inconveniences as the applicant would need to consult with the OSS staff solve the problem. Version 1.1 will try to improve the utility of the OSS system by offering the following upgrades to the services:
1. Explanation/description of each available business entity to make sure the applicant fully understand and register as the most suitable business entity as they are meant to be;
2. Separation of the data registration process. Previously the whole process from data submission, acquirement of NIB, until processing of licenses and permits were combined in one process (which further divided into five steps). Although not yet explained in detail, version 1.1 will separate the process for easier and faster access;
3. Adjustment of forms to accommodate business entities other than PT. Previously, the form for Company data registration was stuck with only one form, PT form. Version 1.1 will bring more types of form to accommodate other business entities such as firm and limited partnership;
4. Separation of main business field and sub-business field. Previously the applicant would need to register one business as their main business. In version 1.1, Instead of just listing the main business, the applicant can also their other businesses as sub-business;
5. Issuance of cover letter from the Ministry/Authorities for each commitment fulfilment. In version 1.0, commitment fulfilment is a bit hard to track. Version 1.1 will have the relevant Ministry/Authorities to issue a cover letter for commitment fulfilment, thus making it easier to keep track of the commitment fulfilment.
Expansion on System
Back in version 1.0, some permits are not yet accommodated by the OSS system and had to be processed outside OSS. With version 1.1, these following permits will be able to be processed in OSS:
1. Will be able to process water location permit and ocean location permit;
2. Will be able to register KPPA in OSS;
3. Will be able to process revocation of license for a non-liquidation reason;
4. Will be able to issue branch office administration registration;
5. Will be able to process LKPM;
6. Will be able to process business license for Merger.
Improvement on Compliance
Back in version 1.0, some compliances weren’t properly checked by the system, thus it was possible to process some permits without fully complying with the prevailing regulations. Version 1.1 will improve the compliance obligation by providing additional check-ups as follows:
1. On top of Identity Card number (NIK), Deed of Establishment, Taxpayer Registration Number, Negative Investment List, KBLI, RDTR, and Tax Holiday, version 1.1 will also check for Special Economic Zone (KEK) Validation, Paid-up Capital, number of shareholders, and foreign shares ownership;
2. According to Indonesian Investment Coordinating Board Regulation No. 5 of 2019, there is investment realization obligation of IDR 10 billion per 5 digits KBLI, however, OSS version 1.0 only offered the mean to register the investment amount for the 2 digits KBLI. In version 1.1, it is now possible to submit the investment amount for each 5 digits KBLI;
3. Back in version 1.0, if there were commitment fulfilments for multiple locations in one district, it will be verified together as one. In version 1.1, the commitment fulfilments will be verified separately instead of combined as a single area;
4. Clear separation between wholesale and retail. Back in version 1.0, there was not any distinction between wholesale and retail as both are using the same trade business license. In version 1.1, wholesale KBLI won’t be permitted to engage in retail services. It still not yet explained whether there will be a separate business license or other means of checking.
Author: Widya Rahmadhani / Benedictus Giovanni
Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas e.g. Information & Technology.
For further queries and information, contact us:
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