Things you should know before registering a company in Indonesia

In the last 2 years, there have been quite a lot of changes in the procedures and conditions for the company registration Indonesia or establishment of a PT (Limited Liability Company), especially those related to the management of its business license. Significant changes related to the procedures and conditions for establishing a PT starting with the enactment of Online Single Submission (OSS) in 2018. OSS is an electronically integrated business licensing process. OSS introduced a Business Identification Number (NIB), adjusted the aims and objectives of business activities using the 2017 Indonesian Standard Business Field Classification (KBLI), and how to apply for business permits and operational permits or commercial permits.

To be able to understand the procedures and requirements for the establishment of the latest  company registration indonesia or PT and its business licensing, it must be linked to the latest regulations, especially Government Regulation Number 24 of 2018 concerning Electronically Integrated Business Licensing Services (“PP on OSS”). Electronically Integrated Business Licensing is Business Licensing issued by OSS Institutions for and on behalf of ministers, heads of institutions, governors, or regents/mayors to Business Actors through an integrated electronic system.

You need to know, in the PP regarding OSS there are 20 business sectors whose licenses can be submitted through the OSS system. Among them are the trade, tourism, industry, agriculture, communication, and information technology sectors, transportation, to the education and culture sectors.

However, for the mining and financial sectors, you cannot manage it through the OSS system. The licensing procedures for both sectors are still under the authority of the Ministry of Energy and Mineral Resources for the mining and oil and gas sector as well as the Financial Services Authority and Bank Indonesia for the financial sector in the form of business licenses for banking and non-banking.

The following is the latest update on the procedures and requirements for the establishment of a PT and business licensing that occurred in the last 2 years:

    Online Single Submission (OSS) Institute

The OSS system is managed by the OSS Institution, which is a non-ministerial government agency that organizes government affairs in the field of investment coordination. This institution is authorized to:

  •     issuing Business Licensing through the OSS system
  •     establish policies for implementing Business Licensing through the OSS system
  •     stipulating the implementation instructions for the issuance of Business Licensing in the OSS system
  •     manage and develop the OSS system
  •     cooperate with other parties in the implementation, management and development of the OSS system.

In addition to the above powers, the OSS Institution has the authority to revoke and declare the NIB obtained if you do business and / or activities that are not in accordance with the NIB, and / or if your NIB is declared null and void based on a court that has permanent legal force. Currently, the OSS institution is BKPM

Business Identification Number (NIB)

One of the newest concepts after the enactment of the PP regarding OSS is the enactment of NIB which is the identity of the Business Actor issued by the OSS Institution after the Business Actor has registered. NIB is in the form of 13 (thirteen) random digit numbers that are secured and accompanied by an Electronic Signature. Apart from being valid as long as you are running your business and / or activities in accordance with the provisions of laws and regulations, NIB also applies as:

  •     Company Registration Certificate (TDP)
  •     Importer Identification Number (API)
  •     Customs access rights