17 February 2020 (closed)
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The launch of the online single submission (OSS) system at Indonesia's Investment Coordinating Board (BKPM) is again delayed as the BKPM still lacks the availability of enough human resources to operate the new system. Originally, the OSS system was to be implemented in April 2018. After a month's delay, 20 May 2018 was set as the new date for the launch. However, another delay awaited.
The OSS system is a web-based platform that integrates all business licensing, and enable the simultaneous issuance of permits (both at the central and regional government level). This should simplify procedures and make it a less lengthy and less difficult process for the investor. Subsequently this should lead to rising direct investment in Indonesia. Presidential Regulation No. 91/2017 was issued as the legal basis for the implementation of the OSS system.
Indonesian Coordinating Economic Minister Darmin Nasution said the OSS system is ready for implementation. However, it cannot be launched yet as the BKPM is not fully ready in laying out the organizational structural, including the issue of human resources. BKPM Head Thomas Lembong declined to respond to the new delay.
Nasution added that there are now two choices: (1) waiting for the BKPM to finalize its organizational structure, or (2) temporarily let the Ministry of Coordinating Economic Affairs handle the OSS system. According to Nasution, his ministry is capable of handling the system. However, it is a choice that needs to be taken by Indonesian President Joko Widodo.
Muwasiq M Noor, OSS system preparation head, says the BKPM is currently engaged in a reorganization process, including the preparation of human resources, in the context of the launch of the OSS system. He added that the BKPM and the Ministry of Coordinating Economic Affairs will work together to handle the OSS system.
Indonesia is an attractive place for foreign investors. To maximise the foreign investment, we need more initiatives like Online Single Submission (OSS) system. Hopefully, with successful implementation of OSS and more systems like this, we can raise the ease of business ranking of Indonesia.