Electronic Integrated Licensing Service allows Indonesians to apply for business licenses online

An announcement made by the Ministry of Communication and Informatics highlighted how the Indonesian Government enacted the law that allows application for business licenses to be done online in order to accelerate the process.

To accelerate the process and increase investments and businesses, the Indonesian government has decided to implement the issuance of licensing services online.

President Joko Widodo has signed the Government Regulation No. 24, which pertains to the Electronic Integrated Licensing Service, on 21 June 2018.

The types of Business Permits that can be applied for online are Business Permits and Commercial or Operational Permits.

The types of applicants for a Business Permit can be and Individual Business Actor or a Non-Individual Business Actor.

According to this Government Regulation, the business licenses can be issued by the Ministers, the heads of institutions, governors, regents or mayors in accordance with their authority, and other officials who have been delegated by the issuing authority to approve the business license.

Article 19 states, “Implementation of the authority of issuing the License as referred to, including the issuance of other documents relating to the Enterprises Licensing shall be made through the OSS Board.”

The OSS Institution under the provisions of this Government Regulation, for and on behalf of the minister, the head of the institution, the governor, the regent or mayor issues the Business Permit, as intended, in the form of an Electronic Document, in accordance with the provisions of laws and regulations in the field of information and electronic transactions.

The issued Electronic Document will be accompanied by an Electronic Signature, which is valid and binding according to law and is considered proof in accordance with the provisions of the legislation and can be printed out.

The process begins with the Business Actor who will conduct the Registration for business activities by accessing the OSS pages.

The Business Actor, who is doing an individual registration, will then enter the Population Identity Number (NIK). Once access to the OSS page has been granted, the Business Actor can now proceed with filling out the data.

The OSS Institution will then issue a Main Number of Business (NIB) after the Business Actor or Business Entity has completed registration. The NIB is a random 13-digit number which is accompanied by an Electronic Signature.

The NIB will then be used to complete the process of obtaining a business license.

Once Business Actors have obtained their NIB, they are also automatically registered with social security health and social security of employment.

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