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

Jakarta, CNBC Indonesia - The Ministry of Investment and Downstream Industry/BKPM has explained why the integrated business licensing system, or Online Single Submission (OSS), was not realised in 2025. The reason is that the programme failed at the tender stage, triggered by limited project execution time.

Minister of Investment and Downstream Industry/Head of BKPM Rosan Roeslani explained that the largest share of the ministry’s unspent budget last year came from the allocation for the OSS system. Although the tender process was attempted, vendors were unable to meet the deadline because the system’s complexity was considered too high.

“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 remainder. The budget came from additional expenditure funds only approved in mid-2025,” he said during a working meeting with Commission XII of the House of Representatives (DPR RI) in Jakarta on Wednesday (15/7/2026).

The project was initially planned to use Additional Expenditure Budget (ABT) funds that were only disbursed in the second semester of 2025. This left the ministry with little time to carry out the service provider selection through to the execution stage.

“We carried out the tender process, but given the complexity of the OSS system, no provider was willing to take on the work within the remaining time available,” he added.

The ministry recorded that its spending realisation in 2025 reached Rp 807.24 billion, or 91.77% of the total allocation of Rp 879.61 billion. Besides the failed OSS tender, budget absorption was also hampered by a budget blocking policy of Rp 16.75 billion, issued under a presidential instruction on 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 our ministry’s control,” he explained.

Although OSS development was hampered, Rosan reported that national investment realisation in 2025 reached Rp 1,931.2 trillion, or 101.3% of the set target. The ministry is committed to making improvements by strengthening the procurement process from the start of the year to ensure projects are delivered on time.

“Going forward, we will continue to improve by strengthening procurement from the beginning of the year, strengthening risk mitigation for strategic activities, and conducting regular monitoring and evaluation,” he concluded.