Indonesian Political, Business & Finance News

Tarakan Streamlines Business Licensing Through Online Single Submission System

| Source: GALERT
TARAKAN – The business licensing system in Tarakan City is now increasingly well-organised with the implementation of the Online Single Submission (OSS) system. Through this system, business operators from micro to macro scale no longer need to visit the offices of the Investment and One-Stop Integrated Services Agency (DPMPTSP) of Tarakan City, and simply need to follow the procedures established by the government as directed on the platform.

Head of the Licensing and Non-Licensing Services Division at DPMPTSP Tarakan, Mariyati, explained that business classifications are differentiated based on investment value.

"Micro businesses have an investment value below Rp 1 billion, small businesses Rp 1–5 billion, medium businesses Rp 5–10 billion, whilst large businesses (high risk) are above Rp 10 billion," she told benuanta.co.id on Friday (11 April 2025).

This classification is important for determining the type of licence and the process that business operators must undergo. In addition to investment value, annual turnover also serves as an indicator.

"It is not just about the size of the capital, but we also take annual turnover into account," she stressed.

The most striking difference between licensing for micro and small enterprises (UMK) and medium and large enterprises lies in the documentary requirements and oversight. For UMK, the licensing process is far simpler.

"UMK only need a Business Identification Number (NIB) and a self-declaration through OSS — no environmental impact analysis or location permit is required," she said.

Meanwhile, for medium and large enterprises, the licensing process becomes more complex. They are required to submit additional documents such as an Environmental Management Plan (RKL), an Environmental Monitoring Plan (RPL), as well as location and environmental permits.

"Because the scale and risk of the business are significant, we also assess the impact on the environment and the community," she explained.

The OSS system serves as the primary platform for processing all business licences. OSS, managed by the Ministry of Investment, is integrated with relevant ministries and agencies, as well as regional governments.

"All business operators, whether micro or large, must register and process their licences through OSS," she stressed.

Through OSS, business operators can obtain a NIB as their official business identity. The NIB simultaneously serves as a Company Registration Certificate (TDP), an Importer Identification Number (API), and provides access to BPJS and tax registration.

"The NIB is like the identity card for business operators. Without it, the business is not yet legal," she added.

DPMPTSP Tarakan City also continues to provide assistance to business operators who are not yet accustomed to the digital system. The agency offers direct consultation services at its offices as well as online.

"We are aware that not all UMK operators are familiar with OSS, which is why we assist them from the start until the licence is issued," she said.

With a transparent and centralised licensing system through OSS, it is hoped that business operators in Tarakan can conduct their economic activities legally and safely. The government can also more easily map the region's investment potential.

"Business legality is not just in the interest of the government, but also protects the business operators themselves," she concluded.
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