Our Publication

In order to create a more efficient and modern investment ecosystem, the Indonesian Government introduced OSS RBA (Risk-Based Online Single Submission) as a nationally integrated business licensing system. This platform is designed to simplify the licensing process by adjusting it according to the risk level of business activities, so that business actors no longer have to go through uniform procedures that fail to take into account the specific characteristics of their businesses.

OSS RBA represents a major reform of the previous system, replacing the earlier version of OSS that was not yet fully responsive to the dynamics of the business world. With a more adaptive, technology-driven approach, OSS RBA has now become the backbone of business licensing services in Indonesia, delivering a faster, more transparent, and more accountable system to support ease of doing business.

What Is OSS RBA?

OSS RBA is an electronic system managed by the Ministry of Investment/BKPM that facilitates the submission and management of business licensing in an integrated manner. Through this system, business actors can obtain a Business Identification Number (NIB) as well as other supporting permits online, using an approach tailored to the risk level of the business activities being carried out.

As the main platform in the national licensing system, OSS RBA is open to all business actors in Indonesia, whether micro, small, medium, or large-scale. The system is designed to provide simpler, more efficient, and more transparent access, allowing business actors to start and grow their businesses with clearer procedures that are easy to monitor.

From OSS 1.0 to OSS RBA

Before the introduction of OSS RBA, the Indonesian government had already begun business licensing reforms with the launch of OSS version 1.0 in 2018. This system was introduced as part of efforts to simplify a licensing process that had long been known for being slow and bureaucratic. OSS 1.0 was designed to enable business actors to manage various permits through a single, integrated online portal. However, in its implementation, OSS 1.0 still faced several challenges, including technical issues, lack of cross-agency integration, and limited user understanding of the still-new system.

The government then made improvements by releasing OSS version 1.1. This version offered enhancements in terms of user interface, system speed, and service coverage. Several additional features were introduced to address business actors’ complaints, such as improvements in the data input process and license status tracking. Nevertheless, the system was still unable to adjust the licensing process based on the nature and risk level of business activities, resulting in procedures that remained uniform and lacked flexibility.

The main weakness of OSS 1.0 and 1.1 was their reliance on manual input and their one-size-fits-all approach. This often forced small and medium-sized businesses to go through the same complex procedures as large corporations, even though their business risks were vastly different. In addition, the absence of risk classification made the system less relevant to the dynamic business practices developing in the field.

In response to these challenges, through Law No. 11 of 2020 on Job Creation, the government officially overhauled the OSS system and launched OSS RBA (Risk-Based Online Single Submission). This system became effective on August 4, 2021, introducing a new approach that is more adaptive to the characteristics of each type of business. By taking into account the risk level based on sector, scale, and business location, OSS RBA is expected to provide licensing procedures that are more proportional, efficient, and measurable, as well as encourage more inclusive investment growth.

The Sophistication of OSS RBA

OSS RBA is designed as a digital, risk-based licensing system that integrates various systems and databases from ministries, government agencies, local governments, and technical institutions. This integration allows business actors to access licensing services through a centralized platform without having to switch between multiple systems. Through this single gateway, the OSS RBA system strengthens inter-agency coordination and improves the effectiveness of the licensing process.

One of the key features of OSS RBA is its automatic risk classification based on the sector and business activities selected by the business actor. The system directly determines whether the risk level is low, medium-low, medium-high, or high, which then becomes the basis for adjusting licensing requirements. This risk-based approach makes OSS RBA more responsive to the real needs of business actors.

For businesses with low risk, OSS RBA offers the convenience of instant permit issuance. By simply obtaining a Business Identification Number (NIB), business actors can immediately start their operations without having to go through additional verification or evaluation processes. This significantly speeds up the process of starting a business and reduces the administrative burden.

Another highly useful feature is the integration of the central OSS system with regional OSS systems and the systems of relevant technical ministries. For example, business actors who require environmental or technical permits from specific ministries no longer need to handle them separately, as the OSS RBA system automatically forwards the process and data to the relevant agencies.

To support transparency, OSS RBA provides NIB and licensing verification through a QR Code, which can be used by the government, business partners, or the public to quickly and accurately verify a business’s legality. This feature is highly useful in preventing document forgery or misuse of permits.

In addition, business actors are provided with a dedicated dashboard within OSS RBA that displays permit status, post-licensing obligations, and reporting deadline reminders. This dashboard not only improves user convenience but also serves as an effective tool for continuously monitoring business compliance. All these sophisticated features demonstrate that OSS RBA is not just a licensing system but also a modern and efficient business governance instrument.

The Government’s Purpose in Developing OSS RBA

OSS RBA was developed in response to business actors’ need for a licensing system that is simpler, faster, and more measurable. Previously, licensing procedures were often considered complicated, overlapping, and inefficient, especially for small and medium-sized enterprises. The introduction of OSS RBA is a strategic step by the government to cut bureaucratic barriers that hinder the business climate.

One of the main objectives of OSS RBA is to simplify the licensing process across sectors and regions. With a nationally integrated system, business actors no longer need to deal with multiple agencies separately. All processes are carried out digitally within a single platform, making the time and costs involved much more efficient.

In addition, OSS RBA provides legal certainty in starting and running a business. With the Business Identification Number (NIB) and clear risk classification, business actors can know exactly which permits are required and how to obtain them. This certainty is crucial for attracting investors and enhancing business credibility.

The risk-based approach allows the system to adjust licensing requirements according to the scale and potential impact of business activities. This makes regulations more proportional and less burdensome for small businesses with relatively simple operations. On the other hand, the system also enhances transparency and oversight, as all business data is recorded electronically and can be accessed by the relevant authorities.

With OSS RBA, the government hopes that business actors will no longer be burdened by repetitive or irrelevant procedures. This system not only simplifies the process but also builds a modern, integrated, and data-driven licensing foundation. In the long term, OSS RBA is expected to become a key driver of investment growth and job creation across Indonesia.

How Does the Government Classify Risk in OSS RBA?

One of the most innovative features of OSS RBA is the use of a risk-based approach in the licensing process. The system no longer applies a single, uniform procedure for all types of businesses but instead adjusts it based on the potential risk of the business activities being carried out. With this approach, business actors do not need to go through lengthy and complex processes if their type of business is considered safe and low-impact.

Based on OSS RBA classification, business activities are divided into four risk categories: Low Risk, which only requires a Business Identification Number (NIB) as formal legality; Medium-Low Risk, which requires an NIB and a Standard Certificate through self-declaration; Medium-High Risk, which requires an NIB and a Standard Certificate verified by the relevant technical agency; and High Risk, which requires an NIB and a business license that is issued only after a thorough technical evaluation.

The determination of risk level is carried out automatically by the system based on the input of the KBLI Code (Indonesian Standard Industrial Classification) and other factors such as business scale, activity location, and potential environmental impact. With this more precise classification, OSS RBA not only speeds up the licensing process but also ensures that supervision is conducted more effectively and proportionally according to the business’s risk profile.

Strategic Recommendations

To maximize the benefits of the OSS RBA system, business actors should first understand the KBLI Code (Indonesian Standard Industrial Classification) that best matches their business activities. Selecting the correct KBLI will determine the risk classification, the types of permits required, and the subsequent procedures to be followed. If in doubt, business actors are advised to consult with a legal consultant to avoid mistakes in the initial process.

Next, it is important to prepare supporting documents such as a domicile letter, taxpayer identification number (NPWP), deed of establishment, and identification documents of the owner or management. These documents will speed up the verification process and fulfill system requirements, especially for business activities classified as medium to high risk. OSS is not just a registration tool but can also be used as a monitoring tool that helps business actors track the status of permits and business obligations in real time.

The next strategic step is to actively update data and regularly comply with business obligations, including activity reporting and fulfilling additional technical permits when required. By making optimal use of OSS RBA, business actors not only meet legal requirements but also build a stronger, more transparent foundation for their business, making it ready to grow within an increasingly competitive business ecosystem.

"OSS RBA is a tool, not just an administrative obligation. Use this system to strengthen your legal foundation, accelerate expansion, and build your business credibility in the eyes of partners, the government, and investors."

— paralegals.id