Indonesian Political, Business & Finance News

Government Says OSS System is Continuously Being Improved to Make Business Easier

| | Source: FINANCE.DETIK.COM Translated from Indonesian | Regulation
Government Says OSS System is Continuously Being Improved to Make Business Easier
Image: FINANCE.DETIK.COM

The Ministry of Investment and Downstreaming/Capital Investment Coordinating Board (BKPM) is working to simplify business licensing through the Online Single Submission (OSS) system. This is being done in response to numerous complaints from business actors regarding the issuance of permits.

Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, stated that he frequently receives complaints about the OSS system, which is said to be difficult to access for obtaining a Business Identification Number (NIB). However, according to him, these obstacles occur because of issues related to the Approval of Conformity of Space Utilization Activities (PKKPR) or location permits.

“There are also complaints from other ministries, fellow ministers and deputy ministers, and from various regions in their constituencies. These small business actors want to start a business, but obtaining an NIB is proving to be very difficult. We are taking note of this, and we are indeed thinking about it and looking for solutions,” said Todotua at the Socialization of the Adjustment of Government Regulation Number 28 of 2025 on the OSS System, Thursday (February 26, 2026).

Currently, the Ministry of Investment and Downstreaming is starting to adjust the rules for issuing NIBs through Government Regulation (PP) Number 28 of 2025. This adjustment is being made to encourage more micro-enterprises to obtain business licenses.

As it stands, Todotua explained, there are approximately 40 million micro-enterprises that do not have an NIB. Currently, the Ministry of Investment and Downstreaming has issued approximately 15 million NIBs for individual companies, both micro and large scale.

“Therefore, we need to improve the OSS system itself so that the process of obtaining permits can be faster. And the growth in the number of NIBs is extraordinary, because I remember clearly that in October when we were appointed, two weeks later I saw that the number of OSS applications at that time was still around 10,960. I remember that number very well.

In the year and a half that we have been in government, the number has now reached 15 million,” he said.

He added that currently there are 372 types of business activities covered by the licensing system. Of these, 181 permits have service level agreements (SLAs) with the relevant technical ministries.

In fact, Todotua said, several ministries have reached 100% agreement in the context of implementing SLAs with a positive fictitious mechanism. He gave the example that in the process of obtaining Approval of Conformity of Space Utilization Activities (PKKPR) or Environmental Impact Analysis (Amdal) for the construction of a hotel, the government and the technical ministry ensure that the permit is issued within a maximum of 28 days.

“Of these 372, we have managed to include around 180 in the context of a positive fictitious service level agreement. One of the easiest examples is the licensing service for hotels. We can now guarantee that the permit will be issued within 28 days,” he added.

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