Business licensing is now easier to retrieve since the launching of the Online Single Submission.
Online Single Submission is the generic name of the Service of Electronically Integrated Business Licensing, or in Indonesia is called Layanan Perizinan Berusaha Terintegrasi Secara Elektronik (LPBTSE).
For the past few years, Indonesia has been reforming the process of the business licensing. Before the Online Single Submission, the government has been serving a simpler way to submit the request of business licenses through Pelayanan Terpadu Satu Pintu (PTSP).
Recently, the Indonesian government has launched a newer system called the Online Single Submission to offer an even easier and faster way to get the business licenses.
The Online Single Submission Synchronizes the Licensing Process
There are more than one license that a company needs to actually operate their business. Using the old way, the company needs to go to several relating departments from the local, regional, to the national government. In addition, a company may need to wait for a couple of months before their licenses were verified and published.
From the national government’s point of view, this long process would eventually lessen the appeal of Indonesia to any investor—domestic and foreign ones. The Online Single Submission was then a concept to solve this kind of problem. Using the online system, a company would only spend an hour to finish their business licensing process.
What the Online Single Submission does is synchronizing the licensing process on all level of the governmental department. The data submitted by the company would be stored electronically in one archive server and can be accessed by the relating government.
Each company would have their own Nomor Induk Berusaha (NIB) in the form of a barcode which works as their electronic identity and used for many other licensing and permitting processes.
There are Two Business Sectors that are Not Served by OSS
Though the Online Single Submission has eased the licensing process of many sectors of businesses, it does not serve all business sectors. The two sectors that cannot submit their business license and permit request are the companies who concern in the fields of finance and energy and mineral resources (Energi dan Sumber Daya Mineral—ESDM).
In one interview, the Coordinating Minister of Economic Affairs, Darmin Nasution, stated that the business in the ESDM and finance fields have different licensing logics and system.
In short, the licenses cannot be easily generalized along with other sectors. The company works on that sectors need to go to relating departments to submit for the licensing process.
The ESDM companies can submit their licensing application to the Ministry of Energy and Mineral Resources, while the financial companies may submit to the Bank of Indonesia or to the Otoritas Jasa Keuangan (OJK).
OSS Lounge and PTSP, the Transition Service from the National Government
However, the government understands that the Online Single Submission system should be applied gradually and transitionally. To facilitate the process, the government still serves the submission through two offline spots, the OSS Lounge and Pelayanan Terpadu Satu Pintu (PTSP).
Business owners can directly come and submit their business licensing request to the OSS Lounge which is based in the Ministry of Economy Affairs and to the PTSP which is based in the Badan Koordinasi Penanaman Modal (BKPM).
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