Policy Alert

Temporary suspension of online single submission (OSS) system in BKPM

By AmCham Staff
Thursday, July 5, 2018

With the signing of Government Regulation No. 24/ 2018 on June 21, the authority to manage and run the online single submission (OSS) system has been temporarily moved from the Investment Coordinating Board (BKPM) to the Coordinating Ministry for Economic Affairs (CMEA) (Article 105). The OSS was to be launched in May 2018, but faced some delays.

BKPM is preparing to take over the operation of the OSS system in approximately five months. In the meantime, BKPM’s role is to collect incoming license applications before channeling them to the OSS, which will be launched soon under the authority of the CMEA. BKPM is still open to answer any queries from permit applicants and investors.

The regulation outlines the roles and responsibilities of the agency responsible for the management of the OSS system (OSS agency). According to Article 1 of the regulation, the OSS agency is a non-ministerial government agency that executes government affairs in the field of investment coordination. Articles 93 and 94 of the regulation mandated the OSS agency to issue business licenses through the OSS system; set policies and implementation instructions for issuing business licenses through the OSS system; manage and develop the OSS system; and collaborate with other stakeholders in the OSS system.

The regulation also outlines 20 sectors impacted by business license reforms (Article 85), including, but not limited to, energy and power, agriculture, forestry, public works and housing, fisheries, health, pharmaceutical and food, industry, communications and informatics, financial, tourism, education and culture, higher education, religious affairs, small and medium enterprises, and nuclear energy. The reforms include the reconfiguration of license type, registration, recommendation, approval, etc; phasing of licensing process; and the enforcement of the criteria fulfillment commitment (Article 84).

Article 86 of the regulation mandated the CMEA to conduct an evaluation of reforms on the sectors not included in Article 85 within six months after this regulation is promulgated.

To see the BKPM press release on the suspension, click here

 

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