OSS Business Licensing: Ministry of Investment Takes Steps to Simplify Procedures for Micro Enterprises in 2026
Jakarta – The Ministry of Investment and Downstreaming/Capital Investment Coordinating Board (BKPM) is optimizing the Online Single Submission (OSS) system to simplify the process for businesses to obtain business licenses, especially the Business Identification Number (NIB). This step is being taken in response to widespread complaints from entrepreneurs regarding access and licensing process issues.
Challenges in OSS Access and Solutions through PP 28/2025
Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, acknowledged that the OSS system is often criticized for being difficult to access, particularly in the process of selecting the NIB. He identified the main obstacle not as being the OSS system itself, but rather administrative constraints related to the Approval of Conformity of Space Utilization Activities (PKKPR) or location permits. “There have been many complaints from various parties, including ministers, deputy ministers, and regional governments, that micro-enterprises are having difficulty obtaining NIBs. We have received these concerns and are continuing to seek solutions,” said Todotua at the Socialization of Amendments to Government Regulation No. 28 of 2025 on the OSS System, Thursday (February 26, 2026).
To address this issue, the Ministry of Investment and Downstreaming plans to revise the rules for issuing NIBs through Government Regulation (PP) No. 28 of 2025. These revisions are designed to significantly encourage micro-enterprises to more easily obtain business licenses.
NIB Revolution: From 10 Thousand to 15 Million
Data shows that there are still approximately 40 million micro-enterprises that do not have an NIB. However, the NIB is an important foundation for business legality. Currently, the Ministry of Investment and Downstreaming has successfully issued approximately 15 million NIBs for individual companies, both micro and large scale.
“The number of NIBs issued shows extraordinary progress. I remember when I was appointed last October, the OSS figure was around 10,960. In the past year and a half, that number has skyrocketed to 15 million,” said Todotua, emphasizing the effectiveness of the OSS system improvements.
SLA and Positive Fictional: Accelerating Business Permits
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, some ministries have reached 100% agreement in implementing SLAs with a positive fictional mechanism.
This mechanism guarantees the certainty of the permit issuance time. For example, in processing PKKPR or Environmental Impact Analysis (EIA) for the construction of a hotel, the government and technical ministries ensure that permits are issued within a maximum of 28 days. “Of the 372 types of business activities, more than half are included in the positive fictional service level agreement. This means that the certainty of permits, such as for the hospitality sector, can be issued within a maximum of 28 days,” explained Todotua.
Risks and Security in the OSS Licensing Process
Although the OSS system is designed to simplify the process, businesses still need to be vigilant about potential risks. Failure to complete administrative requirements, such as PKKPR or EIA, can hinder the NIB issuance process. In addition, the potential for data privacy breaches or misuse of information in the system is also a concern, although the government continues to strengthen cybersecurity.
Practical Tips for Managing Permits Through OSS
For businesses, especially micro-enterprises, understanding the flow and requirements of the OSS is crucial. Here are some practical tips:
Prepare Complete Documents: Ensure that all necessary documents, including identity, business data, and documents related to land or business location, are well prepared.
Understand KBLI: Recognize the Indonesian Standard Industrial Classification (KBLI) that corresponds to your type of business to facilitate the selection of codes when filling in data.
Pay Attention to PKKPR/Location Permit Requirements: This is often a critical point. Make sure you understand the requirements and process for managing space utilization permits in your area.
Take Advantage of Socialization: Attend various socialization and training events organized by relevant ministries to gain a deeper understanding of the OSS system.
Use the Help Channels: If you experience difficulties, do not hesitate to contact the OSS information service center or the relevant unit in the ministry/agency.
Alternative and Other Solutions
For micro-enterprises that are still having difficulty accessing the OSS, the government continues to encourage mentoring schemes through the cooperative and SME offices in the regions. In addition, several special facilitation programs for MSMEs are also often launched. In the future, better integration between the OSS system and population data and land data is expected to further simplify the process.
Conclusion
The revisions to the rules through PP No. 28 of 2025 and the strengthening of the SLA mechanism in the OSS system demonstrate the government’s commitment to simplifying the business ecosystem in Indonesia, especially for micro-enterprises. With a good understanding and thorough preparation, businesses can utilize this system for legality and optimal business growth in 2026 and beyond.