THE INTRODUCTION OF NEW LICENSING SYSTEM IN INDONESIA

Author: Ichsan Montang

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.5 (November, 2018)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Background
After a long preparation and discussion, the Indonesian government finally introduces new licensing system called Online Single Submission (“OSS”) pursuant to the Government Regulation No. 24 of 2018 on Electronically Integrated Business Licensing Service which came into effect on 21 June 2018 (“GR 24/2018”). The OSS system is a part of President’s program of ease of doing business in that the government aims to streamline the licensing procedure to carry out business in Indonesia.

According to GR 24/2018, the OSS will be administered by the OSS Administrator, namely the Indonesian Investment Coordinating Board/Badan Koordinasi Penanaman Modal (“BKPM”). However, due to certain matters, currently the system is administered by the Coordinating Ministry of Economic Affairs (“CMEA”). The handover of OSS administration from the CMEA to BKPM is expected to be done in November 2018.

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