In its latest efforts to cut the red tape and simplify the licensing procedure, at the end of July 2018 the Government of Indonesia, through Government Regulation 24/2018 (GR 24/2018), introduced the Online Single Submission (OSS) system, which allows investors to apply for the various kinds of business licenses through the integrated OSS system.
As its commitment to further implement the mandate given by GR 24/2018, assigning BKPM to manage and implement the licensing process through the OSS system (please refer to our previous newsletter), on 21 December 2018 the Coordinating Ministry of Economic Affairs (CMEA) officially passed the mandate on to BKPM, and accordingly as of 2 January 2019 the OSS system will be directly managed and handled by BKPM.
A team of CMEA will be assigned to work together with BKPM to ensure smooth transition of the OSS System within 2 months.
As there is no specific guideline on the transition mechanism from CMEA to BKPM, it remains unclear whether the existing licenses procedure and requirements laid down by CMEA will be adopted by BKPM.
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