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OSS RBA (Online Single Submission Risk-Based Approach) in Indonesia: How It Works and Why It Matters

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Doing business in Indonesia? You’ve likely heard of OSS RBA Indonesia — but what is it, and why does it matter? Whether you’re an Indonesian entrepreneur or a foreign investor setting up a PT PMA, understanding the OSS RBA is non-negotiable. This guide breaks down everything you need to know in clear, actionable terms — and backed by Indonesian legal insight.

Key Takeaways

  • OSS RBA is Indonesia’s streamlined licensing platform based on risk levels.
  • Business actors must register via oss.go.id for a Business Identification Number (NIB).
  • Risk-based classification affects license complexity and requirements.
  • PT PMA (foreign owned companies) are subject to specific OSS RBA Indonesia regulations.
  • Compliance doesn’t end after NIB—ongoing obligations exist.
  • OSS RBA supports Indonesia’s investment-friendly legal reforms under the Omnibus Law.
  • Mistakes in OSS submission may delay operations—legal guidance is key.
  • High, medium, and low risk categories dictate licensing paths.
  • The system empowers transparency and ease of doing business.

What Is the OSS RBA Indonesia?

Background of Online Single Submission (OSS)

OSS was introduced in 2018 to digitize and centralize business licensing in Indonesia. It aimed to reduce red tape, bureaucratic delays, and promote transparency.

What Changed in the Risk-Based Approach (RBA)

With the introduction of the Omnibus Law (UU Cipta Kerja), Indonesia transitioned to a risk-based model. Rather than applying the same standards to every business, OSS RBA assesses licensing requirements based on the risk profile of each activity.

Legal Framework Governing OSS RBA Indonesia

Omnibus Law and Its Derivatives

The OSS RBA Indonesia system operates under Law No. 16 of 2023 on Job Creation (Omnibus Law), strengthened by Government Regulation No. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

Role of BKPM and Other Ministries

Indonesia’s Investment Coordinating Board (BKPM) plays a central role in implementing OSS RBA alongside relevant ministries based on your business sector.

Key Features of OSS RBA System

Risk-Based Licensing Classification

Business activities are categorized as Low Risk, Medium-Low, Medium-High, or High Risk. The higher the risk, the more extensive the licensing requirements.

Business Identification Number (NIB)

Every business must obtain an NIB (Nomor Induk Berusaha). It acts as a unique ID and legal proof of registration. NIB is mandatory to start operations and is often issued instantly for low-risk businesses.

Automatic Licensing vs Manual Verification

Low-risk businesses receive licenses automatically upon submitting required documents. High-risk businesses undergo manual review and may need further approvals.

Step-by-Step Guide to Using OSS RBA

Preparing Legal Documents

Ensure you have:

  • Deed of Establishment & Amendment (for PTs)
  • Tax ID (NPWP)
  • Company Domicile Letter
  • Articles of Association (AKTA)

Creating an OSS Account

Register at oss.go.id. You’ll need an active email, mobile number, and company data.

Submitting Business Details

Enter information such as company structure, shareholders, business activities (KBLI codes), and supporting documents.

Receiving NIB and Risk Classification

The system will analyze your KBLI (Indonesian Standard Classification of Business Fields) to determine your risk level. Your NIB is then issued electronically.

Obtaining Operational or Commercial Licenses

Depending on your business classification, you may need additional Commercial/Operational Licenses (Izin Usaha, Izin Lokasi, etc.).

Sector-Based Risk Classifications

High, Medium, and Low Risk Examples

  • Low Risk: Online retail, small-scale service providers
  • Medium Risk: Restaurants, education providers
  • High Risk: Mining, healthcare, pharmaceuticals

Each sector’s risk level determines whether you’ll need a self-declaration, certification, or recommendation from ministries.

READ MORE:

OSS RBA for Foreign Investors (PT PMA)

Foreign companies (PT PMA) are required to follow strict OSS RBA protocols:

  • Minimum capital investment of IDR 10 billion (excluding land/building)
  • Specific KBLI codes must be open to foreign ownership
  • Exclusion from Negative Investment List (DNI)

A PT PMA can only be fully operational after obtaining NIB and all sectoral approvals.

Common Mistakes and How to Avoid Them

  • Incorrect KBLI selection — leads to wrong risk classification
  • Missing documents — causes system rejection
  • Skipping environmental or location permits
  • Not updating post-registration changes

Tips: Always consult legal counsel before submission. OSS RBA errors can cost you months of lost time and investment.

Compliance Obligations Post-Registration

Having an NIB doesn’t mean you’re done. Businesses must still:

  • Submit LKPM (Investment Activity Reports)
  • Update data when business changes occur
  • Renew operational licenses periodically
  • Comply with taxation, corporate law, labor law and all legal compliance

Advantages of Using OSS RBA

  • Faster processing (many licenses within hours)
  • Reduced corruption (automated system)
  • Business-friendly environment (welcoming to FDI)
  • Better monitoring and reporting

Indonesia is now ranked higher in ease of doing business due in part to this digitization.

Practical Insights from Kusuma & Partners Law Firm

Over the past three years, we’ve helped many of local and foreign clients successfully register their businesses using OSS RBA Indonesia. Our clients range from tech startups to multinational companies. We’ve learned that the key lies in strategic KBLI selection and early legal review of documentation.

Our advice? Don’t go it alone. The OSS system may be online, but Indonesian bureaucracy still demands precision and legal strategy.

Conclusion

The OSS RBA Indonesia system is a powerful tool for businesses to enter Indonesia’s market quickly and legally. But its effectiveness depends on how well you navigate the legal and technical requirements. Whether you’re a startup or a multinational, getting expert help is critical.

Need help with OSS RBA registration or PT PMA setup?

Contact Kusuma & Partners Law Firm today for expert guidance from lawyers who understand the Indonesian legal system.

“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”

OSS RBA is Indonesia’s business licensing system that issues permits based on a business's risk level.

You may need to secure additional licenses depending on your risk classification.

Yes, but you must update your OSS profile and revalidate your licenses.

Incorrect KBLI selection and skipping mandatory permits.

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