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
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
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
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.