Thu 02 Aug 2018

The Introduction of Online Single Submission in Indonesia

The Introduction of Online Single Submission in Indonesia

Invest in Batam

Investment in Indonesia

One Single Submission


Industrial Estate in Batam

Industrial Estate

Panbil Industrial Estate

The OSS is an integrated digital licensing system that promises to complete processing business permits from the central government and regional administrations within a few hours, compared to the several months the process took before.This is a breakthrough in the licensing and permits procedures in the country, considering the large number of licenses and permits (with more than 50 at the latest count) businesses need to obtain from dozens of state and local organizations to operate in Indonesia.

The OSS system is certain to encounter many bugs and glitches at the outset and it will have limited regional reach within the first year at least, due to the lack of IT infrastructure in many regencies. Therefore, managing the OSS has been temporarily assigned to the office of the chief economy minister before it becomes the full responsibility of the Investment Coordinating Board (BKPM). The vision, mission and intention of the OSS system are very good. It is the implementation of the system that will require a lot of work to do. Initially, the system was to be implemented by the Investment Coordinating Board (BPKM), but according to the Coordinating Economic Minister, Mr Darmin Nasution, temporarily, the OSS would be implemented by his office because the BKPM was still in the transition period.

The office of Ministry of Coordinating Economic has been under pressure to complete the rather revolutionary OSS system, because it not only integrates the entire licensing process, but also took it online, thereby removing the need to process the documents in person. Doing so also required legal reform, revising and reconciling hundreds of laws and regulations.

The city of Batam in Province of Kepulauan Riau became the first city to socialize the implementation of the Online Single Submission (OSS) system.

There will be two main patterns to be done in the OSS work system. Firstly is independent by the investor and second with the aid services by.If this is independent, investors can directly enter the application by following the guidelines in the system, while the assistance system is that investors come to PTSP (Pelayanan Terpadu Satu Pintu) and the officers convey what is needed before entering the OSS system.The OSS program can run smoothly, if the officer in the PTSP section can give a good explanation to prospective investors.The spearhead is at PTSP, because investors will come there as explained by Mr Muwasiq Muhammad Noor, The Head for Preparation Team of OSS from Ministry of Coordinating Economic. According to Muwasiq, a new company is required to use the OSS system and must have a Business Registration Number (NIB).

Recently, Panbil Industrial Estate and some of its tenants have also participated in the socialization of OSS which was held in Batam. Certainly, it is much easier to build physical infrastructure than to reform the bureaucracy to expedite business licensing and strengthen law enforcement, as the latter requires a drastic change in the mindset of officials from simply approving and issuing permits to being a good public servant that coordinates well with all relevant government organizations.

Some of the keys to making the OSS a success are to ensure that it has a secure and controlled system to facilitate business licensing as a legal certainty for investors, to steadily develop the government’s IT infrastructure and to establish high integrity in its operations, right from the beginning.