Getting a Business License
Selasa, 30 Juli 2024
Simplification of business licensing through the implementation of risk-based business licensing is a method created to determine the type of licensing in which businesses can directly carry out operational activities or require certain requirements before business actors conduct operational activities, because not all business activities are required to have a license. The implementation of this concept will be followed by regular and structured supervision activities.
With the implementation of this risk-based business licensing concept, the government has issued a system for making licensing which can be conducted online under the name of Online Single Submission Risk Based Approach (OSS RBA).
In order to understand the processes which are performed within the OSS system based on the level of risk, the OSS system issues an NIB as identity and legality in order to undertake business preparations automatically and equipped with an electronic signature. NIB shall be issued based on the data entry of business actors and general business activity plan, results of conformity examination on spatial utilization activities, and data entry for business activities. In addition, the process for the issuance of an NIB shall also involve validation process of the risk level of the business activity that is undertaken. The level of risk shall follow the level of risk in accordance with the norms, standards, procedures and criteria of ministries/agencies which are automatically verified by the OSS System. Procedures for the issuance of business licensing for all levels of risk—low, medium low, medium high and high—are regulated under the Investment Coordinating Board Regulation No. 4 Year 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities.
LOW RISK
For business activities with low risk, an NIB shall apply as a legality to carry out the preparation of business activities, as well as operational and/or commercial. The process begins with the submission of a statement of commitment to environmental management and monitoring. The NIB which also becomes an SPPL based on a statement of commitment to environmental management and monitoring. For business activities with low risk, the NIB shall apply as a legality to carry out the preparation of business activities, as well as operational and/or commercial.
MEDIUM LOW RISK
For the issuance of medium-low-risk business license, the OSS system begins by filling out a statement of commitment to comply with business activity standards. The next process is to ensure that business activities are mandatory or not mandatory to meet the UKL-UPL standards.
For business activities for which the UKL-UPL is mandatory, business actors are required to fill out a UKL-UPL form accompanied by a statement of commitment to environmental management and monitoring which is available in the OSS System in order to obtain an NIB and a Standard Certificate. Meanwhile, for those which are non-mandatory UKL-UPL, aside from filling out a statement of commitment to fulfill business activity standards, Business actors shall fill out an SPPL form in the form of a statement which is available in the OSS System in order to obtain an NIB and a Standard Certificate.
Furthermore, for both mandatory and non-mandatory UKL-UPL the OSS system shall issue a standard certificate. Similar to the low risk, for medium-low risk the NIB shall apply as legality to carry out the preparation of business activities, as well as operational and/or commercial.
MEDIUM-HIGH RISK
The issuance of medium-high risk business license is initiated by filling out a statement of commitment to fulfill business activity standards in the OSS system.
For medium-high risk business activities which are required to comply with the UKL-UPL standard, in addition to submitting a statement of commitment to fulfill business activity standards, Business Actors shall fill out a UKL-UPL form accompanied by a statement of commitment to environmental management which is available in the OSS System in order to obtain an NIB and a Standard Certificate which includes unverified mark.
In the event that business activities are non-mandatory UKL-UPL, in addition to filling out a statement of commitment to fulfill business activity standards as referred to in paragraph (1), Business Actors shall fill out the SPPL form to obtain an NIB and a Standard Certificate which include an unverified mark.
In contrast to low- and medium-low risks business activities, for medium-high risk the NIB and Standard Certificate that are obtained from the OSS system which have not yet been verified shall serve as the legality of Business in order to undertake the preparation of business activities. In order for standard certificates to be verified and to be used as legality to undertake commercial operational activities, business actors must fulfill the standards through the OSS system, whose period is regulated through norms, standards, procedures and criteria which are stipulated by ministries/non-ministerial government agencies.
Furthermore, for both the filling out of UKL-UPL form and statement of commitment to environmental management, the OSS System shall send a notification to the environmental document information system which is managed by the minister who is in charge of the environment and forestry sector for a verification. Furthermore, the authorized ministry will conduct a verification process and will determine whether the SPPL form or statement of commitment to environmental management is accepted, has to be corrected, or is rejected. However, any verification results from the OSS system will provide a notification.
HIGH RISK
For high-risk business activities, other than the NIB, a business actor must first secure a license before engaging in operational/commercial activities. Permit is the approval of the Central Government or Regional Governments for the implementation of business activities that must be fulfilled by Business Actors prior to carrying out their business activities. And prior to applying for license for business activities for which Amdal is required, business actors must secure an environmental approval in the form of a decree on environmental feasibility. This decree will become a condition for the issuance of licenses.
However, if the business activity falls into the mandatory UKL-UPL category, then upon the issuance of the NIB, Business Actors shall fill out the UKLUPL form accompanied by a statement of commitment to environmental management which is available in the OSS System, followed by a verification process similar to that of a medium-high risk business activity.
In order to obtain a license, business actors are required to submit the fulfillment of license requirements through the OSS system, whose period is regulated through norms, standards, procedures and criteria, as stipulated by ministries/non-ministerial government agencies.
For high-risk business activities, in addition to NIB and License, Business Actors may also obtain a Business Standard Certificate and/or product standards. In order to obtain a Certificate of business standards and product standards, Business Actors are required to submit the fulfillment of business standards and product standards through the OSS System in accordance with the norms, standards, procedures and criteria stipulated by the ministries/agencies.
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