Online Single Submission System Deemed to Be Killing Business, Says KADIN Deputy Chair
Jakarta — The Online Single Submission (OSS) integrated electronic business licensing system has been deemed detrimental to the business world. Deputy Chairwoman of the Indonesian Chamber of Commerce and Industry (KADIN), Suryani SF Motik, said that many small and medium enterprises (SMEs) are hampered by OSS regulations.
"The current OSS system is killing businesses, including SMEs. For example, to register as a partner of a regional government or regional state-owned enterprise, one must be registered in OSS. You have to re-register, make adjustments through a notary. Notary fees can reach Rp7.5 million, then you pay Rp2.5 million to the Ministry of Law and Human Rights. There are coordinates, office locations. Before getting to OSS, there are already so many regulations," said Suryani during the #MillennialsMemilih talkshow at IDN Media HQ in South Jakarta on Sunday (20 October).
According to Suryani, these regulations are inappropriate because the majority of SMEs deal in all manner of goods and services — known colloquially as "palugada" (whatever you want, we have it). However, current SME regulations are structured by segment.
"Now it has been made segmented — 'if you're a goods supplier, you can only do this'. SMEs can't possibly operate under such rules. The intention may be good, but it has become a problem in itself," she said.
"The current OSS system is killing businesses, including SMEs. For example, to register as a partner of a regional government or regional state-owned enterprise, one must be registered in OSS. You have to re-register, make adjustments through a notary. Notary fees can reach Rp7.5 million, then you pay Rp2.5 million to the Ministry of Law and Human Rights. There are coordinates, office locations. Before getting to OSS, there are already so many regulations," said Suryani during the #MillennialsMemilih talkshow at IDN Media HQ in South Jakarta on Sunday (20 October).
According to Suryani, these regulations are inappropriate because the majority of SMEs deal in all manner of goods and services — known colloquially as "palugada" (whatever you want, we have it). However, current SME regulations are structured by segment.
"Now it has been made segmented — 'if you're a goods supplier, you can only do this'. SMEs can't possibly operate under such rules. The intention may be good, but it has become a problem in itself," she said.