Indonesia Streamlines Investment Licensing Through OSS to Compete with Vietnam
Jakarta, Aktual.com – Deputy Minister of Investment and Downstreaming, and Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, is accelerating the reform of the Online Single Submission (OSS) system through the adjustment of Government Regulation (PP) No. 28 of 2025 in order to shorten the national investment cycle. This step is considered crucial for Indonesia to become more competitive and be able to compete with Vietnam in attracting investment flows in Southeast Asia.
“In our country, frankly, the investment cycle is still relatively 4 to 5 years. One of the reasons is the licensing service, which makes it impossible for investment to be realized quickly,” said Todotua at the opening of the socialization of the adjustment of PP 28/2025 concerning OSS at the BKPM Office, Jakarta, Thursday (February 26, 2026).
He compared this condition with Vietnam, whose economic growth has reached around 7 percent and is projected to reach 8 percent. In that country, the investment cycle is more determined by the construction period, while in Indonesia, the initial stage is often delayed in the licensing process.
Todotua revealed that when he first received the assignment, there was an accumulation of unfulfilled investment on the OSS platform, approaching Rp1,500 trillion. In fact, the business actors had obtained a Business Identification Number (NIB), Indonesian Standard Industrial Classification (KBLI), and stated their investment commitment.
To overcome this obstacle, the government is implementing a service level agreement (SLA) or a deadline for licensing services, which is linked to a fictitious-positive mechanism, namely that the permit is considered issued if it passes the deadline without a decision. Of the approximately 372 types of permits, which include approximately 1,700 KBLI, more than 180 permits have been included in the SLA framework.
“One of the easiest, the licensing service for the hospitality sector, within 28 days we can provide certainty that the permit will be issued and business actors can realize their investment,” he said.
On the other hand, the improvement of OSS is also aimed at responding to complaints from micro-enterprises who have difficulty obtaining an NIB due to the requirements of the Approval of Conformity of Space Utilization Activities (PKKPR) or location permits. He admitted that these complaints are received almost every day, including from members of the legislature who convey complaints from their constituents.
Currently, the number of registered NIBs has reached around 15.4 million, with approximately 14.9 million of them coming from micro-enterprises. The government is preparing a solution so that the issuance of NIBs can be faster without ignoring the principles of spatial planning.
“Small business actors want to do business, but getting an NIB is a nightmare. We will accommodate this and find a solution,” said Todotua.