Financial Crime World

Indonesia Launches Risk-Based Online Single Submission (OSS) System: Key Issues to Watch Out for Businesses

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The Indonesian government has launched a new Risk-Based OSS System, aimed at simplifying and streamlining business licensing processes in the country. However, despite its launch, several key issues have emerged that businesses need to be aware of.

Migrating to the New System

  • Businesses will need to migrate their access rights from the old OSS System to the new Risk-Based OSS System.
  • This process can be done by following a manual guide available on the Risk-Based OSS System website.

Verifying Investment Data and Entity Information

  • Businesses should check whether their investment data or entity information has been fully recorded in the Risk-Based OSS System.
  • If not, they will need to update the relevant data.

Reviewing the Priority List

  • The Priority List replaces the negative list and determines which business lines are open for foreign investment.
  • The list can be accessed through the Capital Investment Business Sector feature under the “Information” section of the Risk-Based OSS System.

Assessing Business Scale and Level of Risk

  • Businesses should check the scale of their business and level of risk associated with their lines of business.
  • This information is crucial in determining what licenses are required to operate and the requirements/conditions to apply for those licenses.

Limitations and Technical Issues

  • Some features of the Risk-Based OSS System are still not available or cannot be accessed yet.
  • For example, it cannot cater for mergers or branch office, and some features already available cannot be accessed due to technical issues.

KBLI Adjustment

  • The implementation of the 2020 KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) may require a KBLI adjustment in the future.
  • The Risk-Based OSS System uses the 2020 KBLI numbers, but the Ministry of Law and Human Rights system still refers to the KBLI numbers issued in 2017.

Conclusion

The launch of the Risk-Based OSS System marks a significant shift towards a more risk-based approach to compliance in Indonesia. While it is expected to bring numerous benefits to businesses, it also presents some challenges that need to be addressed. Businesses are advised to carefully review the new system and its features to ensure they comply with the regulations.