The ease of business licensing would encourage more foreign investment to enter Indonesia. Indonesia is committed to improving competitiveness and the investment climate through structural reforms by combining 76 regulations into one through the Omnibus Law system in Law no. 11 of 2020 concerning Job Creation.
The Job Creation Law simplifies business licensing procedures, provides better environmental protection and makes changes to existing labor regulations. The law has also been recognized by the World Bank as a very positive economic reform program that Indonesia has created in the last four decades.
To complete the implementation of the Job Creation Law, digital registration and licensing procedures have also been made easier with the launch of the latest version of the Online Single Submission (OSS), which is based on the Risk-Based Approach (RBA), and the shift from the Negative Investment List (DNI) to the Investment Positive List (DPI).
Now, MSMEs, or other low-risk businesses in the private sector, only need a Business Identification Number (NIB) from OSS to start a business, while medium-risk businesses require an additional Standard Certificate.
All permissions are granted in an integrated OSS system, so the process is very transparent, easier, faster, and credible. The Indonesian government is committed to implementing and supervising the implementation of the new version of OSS in the future.
(Source: Antara News)