All You Need to Know about Indonesia’s Online Single Submission

Your guide to Indonesia’s Online Single Submission.

The Online Single Submission or OSS platform is a relatively recent update to Indonesia’s business incorporation process. However, it can potentially be a major boost to Indonesia’s ease of doing business, which is why aspiring new companies need to understand how it works.

Here’s everything you need to know about Indonesia’s new OSS system.

What is the OSS platform?

Online Single Submission is the Indonesian government’s web-based platform that aims to simplify business licensing in Indonesia. With this platform, the process to get a business license in Indonesia only takes a few hours where it previously took several days.

The Indonesian government launched the OSS on 9 July 2018. Since then, the platform has been available for new businesses to use when getting licenses. As of 2019, the Indonesia Investment Coordinating Board (BKPM) is in charge of running the platform.

What can businesses get using the OSS platform?

The OSS allows businesses to take care of several commercial and operational licenses in one place. Primarily, companies can get their Business Registration Number (NIB) in the platform, which acts as their:

  • Import license (previously API-U),
  • Customs Identification Number (previously NIK),
  • Business registry number (previously TDP), and
  • Automatically registers your company with the government’s Health and Social Security System (BPJS Kesehatan and BPJS Ketenagakerjaan).

Can businesses use the platform to get other licenses?

Depending on your chosen industry, you can use the OSS to apply or renew other business licenses too. Specifically, other items that you could get with the platform include:

  • Personal or company tax ID (NPWP),
  • Approval for foreign employment plans (RPTKA),
  • Documentation for the government’s Health and Social Security,
  • Fiscal incentives such as tax allowances or tax holidays, if applicable, and
  • Commercial licenses.

Which businesses can use the OSS platform?

Don’t worry; your business will probably be able to use the OSS. The platform is available for all profit-seeking enterprises, no matter if your business is:

  • Individuals or group-owned,
  • Micro, small, medium or large,
  • Founded before or after the launch of the OSS, and
  • Domestic, wholly, or partly foreign-owned.

When can businesses use the OSS?

Most businesses can only use the OSS after registering as a legal entity to the Indonesian government. This is because this platform is only for getting licenses, not incorporating a legal entity.

In other words, you need to go through the process of incorporating your company as a legal entity before getting licenses with the OSS. Specifically, your company has to finish getting the Deed of Establishment from Indonesia’s Ministry of Law and Human Rights.

How do businesses register in the OSS?

As mentioned, businesses first need to get approval from Indonesia’s Ministry of Law and Human Rights through a Deed of Establishment.

Then, businesses can register in the OSS system by entering the Single Identity Number (NIK) of the company’s director or person in charge. If they don’t have a Single Identity Number, they can get one by submitting their passport number.

However, if you get a consultant, service provider, or notary to do this process, they still need to submit your company’s data.

After that, the system will send you confirmation emails with your OSS account’s user ID and password.

What’s the next step?

Once you have your account, you’re all set! You can use the OSS to apply or renew for any licenses that you may need.

As we said, this platform helps tremendously in making it easier to do business in Indonesia. However, while the OSS does shorten the time it takes to register a business, it still needs a bit of administrative effort.

In other words, it can still be a hassle to make sure you input all the correct data. However, don’t worry; experienced professionals like Greenhouse can help do the process for you to make sure all the information is accurate.

Greenhouse empowers you to book business incorporation services and connect with market entry consultants in your target markets.

We’ll connect you with experienced consultants on the ground who can help answer your questions about doing business in Indonesia.