Business Licensing

Understanding the OSS RBA System for Business Licensing

What Is the OSS RBA System?

OSS RBA stands for:

Online Single Submission – Risk-Based Approach

It is Indonesia’s centralized digital platform for processing all business licenses and permits — using a risk-based assessment model.

📌 Introduced by:
Ministry of Investment / BKPM (Badan Koordinasi Penanaman Modal)

📌 Purpose:

  • Faster licensing approval
  • Transparent legal process
  • Easier investment entry (local & foreign)

OSS RBA becomes mandatory for:

  • Indonesian-owned companies
  • Foreign-owned companies (PT PMA)
  • Micro, small, medium enterprises (MSMEs / UMKM)
  • Large-scale corporations

Why Risk-Based Licensing?

Licensing obligations differ depending on business risk category:

Risk Level Examples License Type
Low Risk Retail, small shops NIB only
Medium-Low Risk F&B outlets, contractors NIB + Standard Certificate
Medium-High Risk Manufacturing, warehouse NIB + Standard Certificate + Inspection
High Risk Energy, chemical, mining NIB + Full Permit + Environmental approvals

The higher the risk → the more permits required.

Key Business Licenses in OSS RBA

OSS RBA generates several key documents:

NIB — Business Identification Number

Acts as a company’s legal identity

Business Standard Certificate

Issued after business declaration and verification

Commercial/Operational License

Specific activity permit depending on sector

Environmental Permits (UKL-UPL / AMDAL)

For medium-high to high-risk industries

Who Must Register Through OSS RBA?

Business Status Required Registration
New business setup YES
Business ownership changes YES
Location or scope expansion YES
Annual activity reporting YES

Without OSS licensing → business considered illegal by Indonesian law.

business license

Requirements for OSS RBA Registration

Here are general documents needed:

📌 For Local-Owned Businesses

  • KTP of the owner
  • NPWP (Tax number)
  • Business location data
  • Business classification using KBLI code
  • Company deed (PT/CV) if applicable
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📌 For Foreign-Owned Companies (PT PMA)

  • Passport of shareholders
  • Investment plan (minimum capital rules)
  • Legal company deed & Kemenkumham approval
  • Capital structure and share composition

Korsia Group assists verification of KBLI codes to match actual activities.

Step-by-Step OSS RBA Registration Process

Step Description
1️⃣ Create OSS account using NIK/Passport
2️⃣ Fill business details & select KBLI codes
3️⃣ System evaluates risk level
4️⃣ Upload required documents
5️⃣ Obtain NIB instantly for eligible sectors
6️⃣ Complete post-licensing commitments (if any)

✅ Many businesses receive immediate approval after Step 5.

Post-Licensing Commitments

Some sectors require follow-up actions:

  • Inspection from authorities
  • Environmental assessments
  • Location & operational feasibility reports

Failure to complete → license becomes inactive

Benefits of OSS RBA for Businesses

Benefit Impact
Faster approval Reduced processing time
Centralized system One platform for all permits
Transparent process Clear compliance status
Investment-friendly Supports ease of doing business
Legal certainty Protects business operations

Indonesia’s ranking in Ease of Doing Business significantly improved due to digital licensing transformation.

OSS RBA vs. Old Licensing System

Old System OSS RBA
Manual paperwork Fully online
Multiple government offices Single portal
Slow processing Direct approval for low-risk business
Limited tracking Real-time monitoring available

Common Mistakes to Avoid

  • Choosing wrong KBLI code
  • Ignoring risk classification
  • Delay in completing commitments
  • Missing tax registration integration
  • Assuming NIB alone is enough for high-risk sectors

How Korsia Group Helps

Korsia Consulting provides end-to-end OSS RBA assistance:

  • Business license consultation (NIB, Certificates, Permits)
  • Sector compliance guidance
  • KBLI code assessment
  • Faster approval and document handling
  • PT PMA setup assistance for foreign investors
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With proper legal support, licensing becomes smooth and fully compliant.

Conclusion

OSS RBA is a major breakthrough in Indonesia’s investment system.
By understanding risk levels and completing required commitments, businesses can operate more confidently and legally.

  • Faster
  • Simpler
  • Transparent
  • Suitable for both local and foreign businesses

📌 Need help registering your business license via OSS RBA?
Korsia Group is ready to assist with accurate and efficient processing.

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