THE INTRODUCTION OF NEW LICENSING SYSTEM IN INDONESIA

Background
After a long preparation and discussion, the Indonesian government finally introduces new licensing system called Online Single Submission (“OSS”) pursuant to the Government Regulation No. 24 of 2018 on Electronically Integrated Business Licensing Service which came into effect on 21 June 2018 (“GR 24/2018”). The OSS system is a part of President’s program of ease of doing business in that the government aims to streamline the licensing procedure to carry out business in Indonesia.

According to GR 24/2018, the OSS will be administered by the OSS Administrator, namely the Indonesian Investment Coordinating Board/Badan Koordinasi Penanaman Modal (“BKPM”). However, due to certain matters, currently the system is administered by the Coordinating Ministry of Economic Affairs (“CMEA”). The handover of OSS administration from the CMEA to BKPM is expected to be done in November 2018.

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