Market Entry Guide

Indonesia's OSS Licensing System: A Guide for Foreign Businesses

Indonesia's Online Single Submission (OSS) system is the single entry point for obtaining business licenses. Understanding how it works — and where it can slow you down — is essential before you begin.

What Is OSS?

OSS (Online Single Submission) is Indonesia's integrated online licensing platform, managed by the Investment Coordinating Board (BKPM). It was redesigned in 2021 under Government Regulation No. 5/2021 to introduce a risk-based licensing approach (OSS-RBA), replacing the previous one-size-fits-all permit system.

Every business operating in Indonesia — domestic or foreign — must register through OSS and obtain a Business Identification Number (NIB) before commencing operations.

Risk-Based Licensing: The Four Tiers

Risk LevelLicense RequiredTypical ProcessingSectors
Low RiskNIB onlyAutomatic / same dayGeneral trading, consulting, most services
Medium-Low RiskNIB + Standard CertificateAutomatic / same daySmall-scale manufacturing, food retail
Medium-High RiskNIB + Standard Certificate (with verification)5–10 business daysHealthcare, food production, construction
High RiskNIB + Business License (from technical ministry)14–30+ business daysFintech, mining, pharmaceuticals, telecoms

What Is the NIB?

The NIB (Nomor Induk Berusaha) is a 13-digit business identification number issued through OSS. It serves simultaneously as the company's business registration number, taxpayer registration indicator, and customs identification number for import/export.

The NIB is the foundation of all subsequent licensing. No business license can be issued without a valid NIB. For PT PMA (foreign-owned companies), the NIB is issued after the company is incorporated and the Ministry of Law ratification is completed.

The OSS Registration Process

Access the OSS portal at oss.go.id. Registration requires the company's Ministry of Law ratification number, directors' NIK (national ID) or passport numbers for foreign directors, and a description of business activities using the Indonesian Business Classification Code (Indonesian Business Classification Code (KBLI)).

Selecting the correct Indonesian Business Classification Code (KBLI) code is critical — it determines your risk classification, applicable licensing requirements, and which technical ministry has oversight over your business.

A common issue for foreign companies: selecting an overly broad or incorrect Indonesian Business Classification Code (KBLI) code that triggers high-risk licensing requirements unnecessarily — or conversely, selecting a code that doesn't cover all intended business activities. Getting this right from the start saves significant time.

Sector-Specific Permits Beyond OSS

OSS issues the NIB and standard certificates, but sector-specific permits still come from the relevant technical ministries. For example, financial services licenses come from the Financial Services Authority (OJK); pharmaceutical approvals from BPOM; telecom licenses from the Ministry of Communication and Digital Affairs. OSS coordinates the process but does not replace these sector regulators.

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