BKPM Integrates Licensing and Tax Compliance Systems Through Online Single Submission
The Ministry of Investment and Industrial Downstreaming/Investment Coordination Board (BKPM) has integrated the licensing and tax compliance system into the Online Single Submission (OSS) platform. This system adjustment has been carried out in line with the implementation of Government Regulation Number 28 of 2025 (PP 28/2025), which directs OSS updates towards strengthening synchronisation of state revenues, validating tax compliance, and optimising the provision of tax incentives to encourage economic growth.
Siti Romaya, Acting Deputy for Investment Information Technology, explained that the OSS ecosystem is currently being developed to integrate various public services into a single unified system that are interconnected. Through the development of the latest OSS version, the government ensures that investment and business licensing processes are now directly connected with the tax compliance status of business actors.
In this system, tax data is validated directly and integrated with population identity and company legal status through the OSS platform. This integration is also supported by collaboration and unified data exchange among related ministries and agencies. Furthermore, Toda Pasaribu, Deputy Minister of Investment and Industrial Downstreaming and Deputy Head of BKPM, affirmed that BKPM has strategic responsibility and authority, particularly in managing national investment, including providing incentive facilities to accelerate investment realisation.
“To strengthen licensing governance and tax compliance, the government has also positioned fiscal incentive policies as a strategic instrument to attract investment. Through tax holiday and tax allowance schemes, the government endeavours to create a more competitive business climate whilst providing certainty to investors who invest their capital in priority sectors,” Pasaribu stated.
Pursuant to Article 188 paragraph (3) and Article 235 paragraph (1) of PP 28/2025, the investment facility subsystem is one of seven subsystems within the OSS that can be accessed using specific access rights by business actors or relevant agencies.
In practice, the OSS system now includes features for submitting various strategic incentives, including:
applications for exemption of import duties on machinery, goods and materials for industrial development or expansion in the context of capital investment;
applications for exemption of import duties on capital goods for the development or expansion of power generation industry for the public interest;
applications for exemption or reduction of import duties on goods in the context of coal mining contracts or production-sharing agreements;
applications for income tax reduction facilities (tax holiday);
applications for income tax facilities for capital investment in certain business fields and/or certain regions (tax allowance);
applications for gross income reduction for the conduct of internship activities, apprenticeships and/or learning in the context of vocational competency-based human resource development (vocational super tax deduction);
applications for gross income reduction for certain research and development activities in Indonesia (research and development super tax deduction); and
facilities for net income reduction for new capital investment or business expansion in certain business fields that constitute labour-intensive industries (investment allowance).
In addition to fiscal incentives with tax holiday and tax allowance schemes, the OSS also integrates strengthening of the state revenue ecosystem beyond the tax sector, namely collection of non-tax state revenue and regional levies, which form part of meeting basic requirements.
The provisions for submitting applications for tax incentives through OSS are regulated in the Finance Ministry Regulations which serve as the legal basis for granting each type of incentive. For example, the provisions governing the procedures for submitting tax holiday applications through OSS are contained in Finance Ministry Regulation 130/PMK.010/2020 as amended by Finance Ministry Regulation 69 of 2024 concerning the Provision of Income Tax Reduction Facilities for Companies (PMK 69/2024).