Licensing Reform : Online Single Submission (OSS)

Transcription

1 Licensing Reform : Online Single Submission (OSS) Jakarta, August 2018

2 3,90% 6,08% INDONESIA COMPETITIVENESS ASEAN Economic Growth % 1 5,90% 2 5,03% Indonesia have to increase its competitiveness with other Countries especially in the region One of the main driver of economic growth is through investment. Indonesia has to foster and accelerate its investment in order to be competitive. GDP= Consumption + Investment + Government Spending + Net Exports 2

3 Indonesia s Doing Business Comparison to ASEAN and BRIC Countries ASEAN Country BRIC Country DB 2017 DB 2018 Country DB 2017 DB 2018 Singapore 2 2 Russia Malaysia Indonesia Thailand China Brunei India Vietnam Brazil Indonesia Philippines Lao PDR Ease of Doing Business Indonesia, BKPM started to enganged in EODB reform since 2014 by assignment from Coordinating Minister of Economic Affairs

4 MAIN INVESTMENT OBSTACLES Based on 190 investment cases in Working Group 4 Coordinating Ministry of Economic Affairs, the main obstacles in investment are: 32.6% 15.2% 17.3% LICENSING LAND AQUISITION REGULATION AND POLICY Central Government Local Government Required a breakthrough in licensing reform 4

5 PRO INVESTMENT POLICY 16 Economic Packages Predictable Minimum Regional Wages Incentives for Transport Industry Tax incentives for labor intensive industry Acceleration on infrastructure and electricity Shorter dwelling time 3 hours licensing Negative List of Investment Reform Lower electricity rate for industry Easier Visa Application and Working Permits Incentive for property Land aquisition acceleration EODB Ease of Doing Business Improvement % Affordable housing e- commerce Incentive for e-commerce Industry Logistic INSW and lower logistic cost OSS Online Single Submission 5

6 ACCELERATION ON DOING BUSINESS TRHOUGH S I K Licensing reform by changing the business process and its environment 1. STANDARDIZATION (National and International) REGULATION: 1. Presidential Regulation Number 91 Year Government Regulation Number 24 Year BKPM Regulation Number 6 Year BKPM Regulation Number 7 Year Ensure the Safety, Health, Security and Environmental aspect (K3L) 4. Monitoring by certified officers REGULATION 3. Commitment 2. System improvement INTEGRATION 6

7 OSS PARADIGM SHIFT COMMITMENT FROM BUSINESS ACTOR AND GOVERNMENT OFFICER BEHAVIOUR CHANGE Business Actors Government Officers Business actors to realize the investment sereiously (provision: beyond the time limit of fulfillment of commitment, the permit is not valid/revoked) More responsive governmental apparatus (provision: negligence in checking the fulfillment of commitments of business actors, the license is considered effective) 7

8 GOVERNMENT REGULATION (PP) NUMBER 24 YEAR Regarding : Online Single Submission (OSS) 2. Effective since 21 June Starting from 1 June 2018, all licensing process are done through the OSS system. Ministries and Local Government are no longer allowed to issue licenses within the sectors stated in this regulation. 4. The purpose of the government regulation: a. To simplify the process business licensing to become more efficient, simple and modern. b. Simplification of regulation (standardization, integration, coordination). c. To increase investment. d. Reformation of services system in line with current technology. OSS has officially launched on 9 July 2018, with the Coordinating Ministry for Economic Affairs as the lead institution. 8

9 OSS SCOPE 1 Scope of Sectors All sectors of business except: Mining, Oil and Gas and Finance. 9 2 License Issuance Authority The government regulation supersedes all licensing authority from Ministers, Governors, Regents and Mayors to the OSS System. 3 Who are the Business License Applicants? The Government Regulation stipulates applicants as follows: a. Individual person. b. Legal business entity (ie. Foreign Company (PT PMA), Local Company (PMDN), State owned/region owned company (BUMN/BUMD), SME (Koperasi, firm, CV/Persekutuan Commanditer), etc) 9

10 TYPE OF LICENSES What type of licenses are issued through the OSS System? 1. Business Identification Number (NIB) a. as the company s identification b. also valid as Company Registration (TDP), Import Identification (API) and Customs Access c. each company can only have 1 (one) NIB 2. RPTK 3. Location Permit 4. Building Permit (IMB) 5. Environmental Permit (UKL/UPL, AMDAL) 6. Business License 7. Operational Permit 10 10

11 PRINCIPLE OF BUSINESS LICENSE ISSUANCE THROUGH OSS 1. The OSS System is a processor which holds the principle of self declaration to the investors applying for a license. This means that the investor must provide valid information OSS issues the business license upfront before the investor fulfils the requirements for the business license. 3. The Investor who has obtained a business license must then fulfil the commitment along with the requirements necessary. 4. If the investor fails to follow through with the commitment, then the business license will be null and void. 5. There will be a post audit by the local government officials who will monitor the progress of the investor s commitment. 11

12 BUSINESS PROCESS Business Process through the OSS System: Investors register at OSS. OSS will then issue the Business Identification Number (NIB) OSS will then issue the Business License and Commercial License or Operational License based on the commitment; Investors are required to fulfill their Business License and Commercial License or Operational License commitment to the related Ministries both at national and regional level. Investors conduct payment (if any); Ministries, Agencies, Regional Government monitor the progress of the investor to fulfill their commitment for the Business License and Commercial License or Operational License

13 CONTROLLING AND IMPLEMENTATION OF BUSINESS LICENSING 13 Ministries, institutions, and/or local governments shall exercise control over: Fulfillment of commitment; Compliance with standards, certification, licenses and/or registration; and / or Business and/or activity, 13

14 NEW BKPM REGULATION BKPM Regulation Number 6 and 7 Year 2018 Investment licensing procedures for sectors that are not yet regulated in Government Regulation Number 24 of 2018 (29 types of licenses) and investment facilities are regulated under BKPM regulation number 6 of 2018 (Permit and License that are not included in Government Regulation Number 24 Year 2018 will still be processed via SPIPISE PTSP BKPM). The procedure of reporting of investment activity (LKPM) is regulated in BKPM Regulation number 7 year Investors are still obliged to submit LKPM to BKPM. 14

15 TRANSITION OF STARTING A BUSINESS EODB Online Single Submission (OSS) NO. PROCEDURES TIME TO COMPLETE DB Pay fee for obtaining clearance of company name 1 day Rp Obtain clearance for the company s name at the Ministry of Law and Human Rights Arrange for a notary to obtain the standard form of the company deed and notarize company documents. (In accordance with Law 30/2004 on Notaries, Article 36: 1-2,5% from object value in certificatee) Apply to the Ministry of Law and Human Rights for approval of the deed of establishment ASSOSIATED COST Online Included in procedure 3 1 day (simultaneous with procedure 2) Less than 1 day (online) 5 Apply for the certificate of company domicile 2 days No charge Pay for the non-tax state revenue (PNBP) fees for legal services at a bank Apply at the Ministry of Trade for the permanent business trading license (SIUP) and the company registration certificate (TDP) from DPMPTSP for Jakarta Register with the Ministry of Manpower through The Information System on Company s Manpower Mandatory (Sistem Informasi Wajib Lapor Ketenagakerjaan /Sinlapnaker) Apply for the Workers Social Security Program (BPJS Ketenagakerjaan) 10 Apply for Healthcare Insurance with BPJS Kesehatan 11 Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP) In accordance with the provision of law Included in procedure 6 1 day ± Rp days No charge 1 day No charge 7 days (simultaneous with procedure 10) 7 days (simultaneous with procedure 11) No charge No charge 1 day (simultaneous No charge with procedure 12) Total 11 Procedures for Starting a Business 22 days Rp Businesses shall first obtain Article of Association through AHU online system, before setting up OSS account Article of Association NPWP Business Identification Number (NIB) Investment Registration Certificate of company registration (TDP) Importer Identification Number (API) Customs Access (Akses Kepabeanan) Business licence, i.e SIUP BPJS Ketenagakerjaan BPJS Kesehatan Fiscal incentives (TA, TH) 15

16 TRANSITION OF LICENSING APPLICATION BKPM Regulation Number 13 Year 2017 BKPM Regulation Number 6 Year 2018 LICENSING STAGE PREPARATION CONSTRUCTION PRODUCTION OLD MECHANISM 3xapplication with Different licensing format Principal License/ Investment Registration SPIPISE Facilities + Ministries License+ Regional License SPIPISE + Ministries and regional system Business License SPIPISE + Requirement of other licensing standard NEW MECHANISM 1xapplication Business Identification Number 'NIB' COMMITMENT SELF DECLARATION Enviromental Permit IMB SLF Business License 'OSS System' One Licensing Format COMMITMENT SELF DECLARATION SNI CPOB CPAKB CPOTB Commercial/Operational License Post Audit Sumber: Kantor Kemenko Perekonomian,

17 LICENSING SIMPLIFICATION (1) Num Sector Before After Remarks 1 Transportation permit 68 permit Permit integration and removal Permit integration and removal. Approval is classified as permit Already confirmed by sector 2 Agriculture 3 Marine and Fishery combined* Already confirmed by sector Permit integration and removal. SIUP is principal permit for each sub-sector Permit integration and removal Already confirmed by sector 4 Public Works and Housing Nonpermit Nonpermit permit 26 permit permit 32 permit 11 Nonpermit Nonpermit permit 15 permit 5 5 combined*, 2 integrated process with Environmental Permit (AMDAL) and removed Already confirmed by sector Permit: Standard, Recommendation, Registration, Certification and Confirmation *Combine with remarks : There are different requirements for different type of permit 17

18 LICENSING SIMPLIFICATION (2) Num Sector Before After Remarks 5 Environment and Forestry 6 Trade 7 Industry 8 Communication and Informatics 9 Health 10 Tourism permit 39 permit combined 5 7 Already confirmed by sector permit 86 permit combined* and 14 removed removed permit 6 permit 5 Some permits are combined and 3 are Already confirmed by sector removed permit 36 permit combined*, 1 changed into Already confirmed by sector standardization 1 8 permit 31 permit combined*, 3 changed into Already confirmed by sector standardization and 6 standardization 2 10 permit 1 permit 1 Nonpermit Nonpermit Already confirmed by sector 2 2 Permit: Standard, Recommendation, Registration, Certification and Confirmation *Combine with remarks : There are different requirements for different type of permit 18

19 LICENSING SIMPLIFICATION (3) Num Sector Before After Remarks 11 Education and Culture 12 Research and Higher Education 13 Manpower 14 Finance 15 Energy and Mineral Resources 16 Religion 17 Food and Beverage permit 16 permit 6 2 combined and 2 removed 1 3 Already confirmed by sector permit 5 permit 3 2 removed 0 0 Already confirmed by sector permit 9 permit 9 2 registration removed 4 2 Already confirmed by sector permit 12 permit 8 6 combined and 1 removed 8 2 Already confirmed by sector permit 43 permit 6 3 changed into standardization 30 3 Already confirmed by sector permit 6 permit 6 Already confirmed by sector 0 0 permit 12 permit 11 4 combined and 3 removed Nonpermit Nonpermit 8 6 Already confirmed by sector Permit: Standard, Recommendation, Registration, Certification and Confirmation *Combine with remarks : There are different requirements for different type of permit 19

20 OSS IMPLEMENTATION 1. An existing business that currently hold the business license, no need to resubmit their application through OSS portal, and still be able to continue their commercial operation with the existing license. 2. An existing business that currently hold the business license, and wishes to, for example, expand its business or investment, will have to apply all required licenses through OSS portal. 3. There are 17 sectors covered in OSS. Otherwise, a list of 29 business licenses which are not to be issued under OSS (not included in Government Regulation Number 24 Year 2018), includes licenses within sectors: a. Energy and Natural Resources, with electricity as subsector b. Energy and Natural Resources, with petroleum and natural gas as subsector c. Energy and Natural Resources, with mineral and coal as subsector d. Public works and Housing e. Custom and Tax facilities f. Investment (i.e. License for foreign representative and branch office) 20

21 21 Thank You Terima Kasih Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jln. Jend. Gatot Subroto No. 44 Jakarta Indonesia t f e. info@bkpm.go.id