Indonesian Political, Business & Finance News

Integrated OSS Licensing System Fails to Materialise in 2025, Here's Why

| Source: CNBC Translated from Indonesian | Economy
Integrated OSS Licensing System Fails to Materialise in 2025, Here's Why
Image: CNBC

The Ministry of Investment and Downstreaming has revealed that the development of the integrated business licensing system, Online Single Submission (OSS), did not materialise in 2025 because the project failed in the tender process, triggered by limited execution time. Minister of Investment and Downstreaming Rosan Roeslani explained that the largest portion of the ministry’s unspent budget from last year came from the allocation for the OSS system. Although the tender process was carried out, vendors were unable to meet the deadline due to the system’s high level of complexity. “The development of the OSS system could not be realised because the tender failed due to time constraints, amounting to Rp 26.46 billion or 36.56% of the remaining budget. The budget came from additional spending which was only approved in mid-2025,” he said during a working meeting with Commission XII of the House of Representatives in Jakarta on Wednesday (15/7/2026). The project was originally planned to use funds from the Additional Budget, which was only disbursed in the second half of 2025. This left the ministry with very little time to conduct the selection of service providers through to the execution stage. “We carried out the tender process, but given the complexity of the OSS system, no provider was willing to undertake the work within the remaining time,” he added. The ministry recorded that its total spending realisation in 2025 reached Rp 807.24 billion, or 91.77% of the total ceiling of Rp 879.61 billion. Besides the failed OSS tender, budget absorption was also hampered by a budget blocking policy amounting to Rp 16.75 billion, which was a presidential instruction for national spending efficiency. “There was a budget block of Rp 16.75 billion or 23.14% of the remainder, in accordance with Presidential Instruction Number 1 of 2025 on Spending Efficiency. This budget could not be used until the end of the year and was beyond the ministry’s control,” he stated. Despite the obstacles in developing the OSS system, Rosan reported that national investment realisation in 2025 successfully reached Rp 1,931.2 trillion, or 101.3% of the set target. He committed to making improvements by strengthening the procurement process from the beginning of the year to ensure projects are completed on time. “Going forward, we will continue to make improvements by strengthening procurement from the start of the year, enhancing risk mitigation for strategic activities, and conducting regular monitoring and evaluation,” he concluded.

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