Simplified Procedure on Business License and Permit Issuance: Online Single Submission.

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Government of Indonesia issued Government Regulation No. 24 of 2018 concerning Electronically

Integrated Business Licensing Service (“PP No. 24/2018“), which introduces the Online Single
Submission (OSS), the system for the issuance of licenses and permits by the governments.

Prior to harmonized, unified and simplified licensing process nationwide and as implementation of
Presidential Regulation No. 91 of 2017 on Acceleration of Doing Business (“Perpres No. 91/2017“).
Issuance of PP No. 24/2018 which undertaken by OSS system, erasing the red tape of the complex
procedures on licensing for business permits.

Online Single Submission (OSS)

The electronic integrated OSS system will be the gateway for the existing government services system
of ministerial/agency and regional government level. The system will be administered by the OSS
Agency in the Coordinating Ministry of the Economy.

The OSS Agency also has the authority to issue business licenses for and on behalf the ministries, heads
of agencies, governors, regents to mayors in the form of electronic documents that will be stamped with
an electronic signature.

Electronic Business Licenses Issuance by OSS: How?

The business entity who can request in OSS system are:

 Individual, must be Indonesian citizen;

 Limited liability company;
 Public corporation;
 Regional public corporation;
 State owned enterprises (e.g. Indonesian Export Funding Agency, Health Social Insurance
Administration Organization, Manpower Social Insurance Administration Organization);
 Public service agency;
 Broadcasting agency;
 Company established by foundations;
 Cooperatives;
 Limited partnership;
 Firm associations; and
 Associations.

OSS system made to utilized in order to process the following Business Identification Number (“NIB“)
by register and input business entity data in OSS website.

This NIB simultaneosly applied for the Company Registration Certificate (“TDP“), Importer’s
Identification Number, and another customs access, also applicants who already registered their NIB,
also registered as participants in the health and manpower social insurance organization.
Business Identification Number (“NIB”)
An NIB is a 13 digit secure number that serve as the identity of a business and which can be used in
order to apply for business licenses, commercial licenses and operational licenses via the OSS.

In order to secure NIBs, businesses are first required to register with the OSS system by inputting
information, including:

Citizenship identity number (for individual applicants);

Notarial deed of establishment number (for non-individual applicants);

business sector (for both types applicant).

NIB will be granted after applicants already input their inquiries to the OSS system and also who are
in/or not yet in possession of Taxpayer Identification Number (“NPWP“). NPWP also can be applied
via the OSS.

Requirements of issuance for business permits

Business permits may be issued based on commitments to applicants which:

 do not require any facility to commence their business activities; and

 require a certain facility to commence their business activities, and the applicants already own
the facility.

If, applicants request for permits and requires a facility to commence their business facility, the OSS
will issue the business permit based on a commitment after the said applicants have obtained the
following licenses based on commitment:

 location permit;
 water location permit;
 environmental license; and/or
 building permit.

After a business license has been secured…

Business who is already authorized based on commitment has been secured, they are authorized to
undertake the following activities:

1. procurement of land, human resources, facilities and infrastructure;

2. construction and operation of buildings;
3. commissioning activities;
4. production activities.

A business licenses will remain valid as long businesses running, unless stated otherwise in the relevant
laws and regulations.

Transitional Provisions

Any business license which were applied before PP No. 24/2018 came into effect but which has not
been issued will be processed through the OSS system. Regarding applicants which obtained their
business permit and/or commercial or operation permit before the PP No. 24/2018 came into effect, but
need a new license for a business expansion, according to PP No. 24/2018 the following provisions will
apply:

Applications for the issuance of new license will be undertaken via the OSS system through the
completion of the necessary information and through the submission of the relevant commitment in
accordance with PP No. 24/2018;

Business licenses and/or commercial or operational licenses which have already been previously
secured will remain valid and must be registered with the OSS system; and

Businesses will be granted an NIB in accordance with PP No. 24/2018.