Tourism Ministry to Review Online Single Submission System Following Misuse Complaints in Bali
Denpasar — The Ministry of Tourism is set to discuss issues surrounding the Online Single Submission (OSS) system with the Investment Coordinating Board (BKPM), following complaints from district and city tourism offices in Bali that the system is frequently being misused by business operators.
OSS is Indonesia's integrated electronic business licensing system, designed to simplify and expedite the business permit process.
"We will discuss this with the BKPM Ministry, which actually developed the system together with us. So we will discuss together what needs to be improved within OSS, so that problems on the ground can be minimised," said Deputy for Industry and Investment at the Ministry of Tourism, Rizki Handayani Mustafa, during a coordination meeting with stakeholders at the Bali Provincial Tourism Office on Monday (28/4/2025).
According to Rizki, OSS was originally intended to cut bureaucracy and simplify licensing. Given the complaints, the Ministry of Tourism also plans to discuss the matter with the Ministry of Housing and Settlements (PKP), as many housing permits have been misused to operate tourism accommodation.
"It's not actually the licensing that's at fault, but the way it's being used. This is why oversight is needed," Rizki stressed.
The Ministry of Tourism will also compile data on illegal tourism accommodation in Bali. She noted that the ministry currently draws official data from the Central Statistics Agency (BPS) and cross-references it with BKPM data.
"We are currently reviewing this. I don't want to state figures because we're still in the process. But there are indeed discrepancies between the current official data and what exists on the ground. We are also trying to discuss this with Gus Agung (Chairman of GIPI Bali)," she explained.
Meanwhile, Secretary-General of the Indonesian Hotel and Restaurant Association (PHRI) Bali, Perry Marcus, raised concerns about the Indonesian Standard Industrial Classification (KBLI) for foreign Micro, Small and Medium Enterprises (MSMEs). He called for verification of how foreign MSME classifications came to exist.
"We must ensure that these foreign KBLI classifications are not being exploited by foreigners to operate businesses by taking over spaces belonging to our small local MSMEs," he said.
He urged that the matter be reviewed, noting that it affects not only hotels, restaurants and accommodation, but also other sectors including agriculture.
"That's why the Deputy earlier also said there will be changes to the KBLI classifications. This includes, for example, beach club businesses and others that haven't been included yet — those will likely be addressed as well," he added.
OSS is Indonesia's integrated electronic business licensing system, designed to simplify and expedite the business permit process.
"We will discuss this with the BKPM Ministry, which actually developed the system together with us. So we will discuss together what needs to be improved within OSS, so that problems on the ground can be minimised," said Deputy for Industry and Investment at the Ministry of Tourism, Rizki Handayani Mustafa, during a coordination meeting with stakeholders at the Bali Provincial Tourism Office on Monday (28/4/2025).
According to Rizki, OSS was originally intended to cut bureaucracy and simplify licensing. Given the complaints, the Ministry of Tourism also plans to discuss the matter with the Ministry of Housing and Settlements (PKP), as many housing permits have been misused to operate tourism accommodation.
"It's not actually the licensing that's at fault, but the way it's being used. This is why oversight is needed," Rizki stressed.
The Ministry of Tourism will also compile data on illegal tourism accommodation in Bali. She noted that the ministry currently draws official data from the Central Statistics Agency (BPS) and cross-references it with BKPM data.
"We are currently reviewing this. I don't want to state figures because we're still in the process. But there are indeed discrepancies between the current official data and what exists on the ground. We are also trying to discuss this with Gus Agung (Chairman of GIPI Bali)," she explained.
Meanwhile, Secretary-General of the Indonesian Hotel and Restaurant Association (PHRI) Bali, Perry Marcus, raised concerns about the Indonesian Standard Industrial Classification (KBLI) for foreign Micro, Small and Medium Enterprises (MSMEs). He called for verification of how foreign MSME classifications came to exist.
"We must ensure that these foreign KBLI classifications are not being exploited by foreigners to operate businesses by taking over spaces belonging to our small local MSMEs," he said.
He urged that the matter be reviewed, noting that it affects not only hotels, restaurants and accommodation, but also other sectors including agriculture.
"That's why the Deputy earlier also said there will be changes to the KBLI classifications. This includes, for example, beach club businesses and others that haven't been included yet — those will likely be addressed as well," he added.