Client Alert– New Provisions on Business Licensing Services Through The OSS System

On 30 March 2020, the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM) issued BKPM Regulation No 1 of 2020 (BKPM Reg 1/2020). BKPM Reg 1/2020 was issued as an implementing regulation of Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services and President Instruction No 7 of 2020 on Acceleration of the Ease of Doing Business and was enforced on 1 April 2020.

By the issuance of BKPM Reg 1/2020, among others: (i) business actors will have more detailed guidelines on how to process and obtain a Business Identification Number (Nomor Induk Berusaha), which under the new Online Single Submission (OSS) system it must be obtained by business actors; (ii) some additional Indonesian Standard Business Classification – Klasifikasi Baku Lapangan Usaha  (KBLI) (e.g., trading) may not require shareholders of PT PMAs to inject additional investment value of IDR 10 Billion if they add additional certain same qualification KBLI number activity of the PT PMAs; (iii) there are new types of Business License and Commercial/Operational License being introduced to be issued by the OSS system; and (iv) there will be a new business license to be issued by the OSS system if business actors conduct a merger.

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