Sentre Legal Solutions

Risk Levels and Required Business Licenses

• Low Risk

  Business Type: Activities with minimal impact on health, safety, the environment, and public interest.

  Required License: Generally, a Business Identification Number (NIB) is sufficient as proof of business registration.

  Examples: Small retail shops, consulting services, and small-scale trading businesses.Initial Consultation

• Lower-Medium Risk

  Business Type: Activities with limited impact that require basic supervision.

  Required License: In addition to the NIB, a Standard Certificate is required, which can be obtained through self-assessment.

  Examples: Restaurants, small workshops, and mid-sized service businesses.

• Higher-Medium Risk

  Business Type: Activities with more significant impact, requiring enhanced regulatory oversight.

  Required License: In addition to the NIB and Standard Certificate, verification by the relevant authority is required before a business license can be issued.

  Examples: Manufacturing industries, construction services, and food processing businesses.

• High Risk

  Business Type: Activities with substantial impact that demand strict supervision to ensure safety, health, and environmental protection.

  Required License: In addition to the NIB, a special license is required, along with thorough inspection by the relevant authority prior to issuance.

  Examples: Chemical industries, mining operations, and energy sector businesses.

Advantages of OSS-RBA (Online Single Submission Risk-Based Approach)

• Faster and More Efficient Licensing Process

  OSS-RBA streamlines the licensing procedure, reducing time and eliminating unnecessary bureaucratic complexities.

• Transparency and Legal Certainty

  A transparent and integrated system provides legal assurance for business operators, enhancing trust and compliance.

• 24/7 Online Accessibility

  The platform can be accessed anytime and anywhere, allowing users to manage their business licensing needs with greater flexibility.

• Integrated Across Institutions

  OSS-RBA connects various government institutions, enabling seamless coordination and quicker decision-making.

• Risk-Based Approach for Tailored Licensing

  Licensing requirements are adjusted based on the level of business risk, ensuring more proportional and relevant compliance obligations.

• Support for Business Growth

  By simplifying the process and reducing administrative burdens, OSS-RBA encourages entrepreneurship and supports economic development.

Business Licensing Process Through OSS-RBA

• Initial Consultation

  Conducting a preliminary assessment to understand your business needs and provide guidance on risk-based licensing requirements.

• Document Preparation

  Assisting in the preparation and compilation of all necessary documents required for the license application.

• Registration and Submission

  Facilitating the registration and submission of licensing applications through the OSS-RBA system.

• End-to-End Support

  Providing ongoing assistance throughout the licensing process until the business license is officially issued.

• Issue Resolution

  Addressing and resolving any challenges or issues that may arise during the licensing process.Photocopies of the Founders’ ID Cards (KTP) and Tax Identification Numbers (NPWP)

At Sentre Legal, we offer a comprehensive Risk-Based Business Licensing Service designed to help you navigate regulatory requirements with ease, efficiency, and confidence. Whether you're launching a new venture or expanding operations, our tailored approach ensures you're licensed properly based on the actual risk level of your business activity.

Selection of KBLI Code

The KBLI (Indonesian Standard Industrial Classification) 2020 is the official classification system used in Indonesia to categorize types of economic or business activities. Developed by the Central Bureau of Statistics (BPS), the KBLI serves as a formal reference for business registration. Every company or business entity is required to select and register the KBLI code that accurately reflects its business activities.

Frequently asked questions

What is OSS RBA?

The Online Single Submission Risk-Based Approach (OSS-RBA) is a business licensing system that categorizes licensing requirements based on the level of risk associated with a business activity. The higher the risk, the more comprehensive the licensing requirements. This system is designed to simplify the licensing process while enhancing regulatory compliance and legal certainty for businesses..

What Documents Are Required for OSS-RBA License Application?

The required documents may vary depending on the risk level of the business activity. However, in general, the following documents may be necessary:

• Owner’s identification (e.g.,KTP or equivalent)

• Company Tax Identification Number (NPWP)

• Deed of establishment of the company

• Business domicile letter

• Environmental approval, which may include one of the following (based on the relevant KBLI code and risk level):

1. Environmental Impact Assessment (AMDAL)

2. Environmental Management and Monitoring Efforts (UKL-UPL)

3. Statement Letter of Environmental Management (SPPL)

How Long Does the OSS-RBA Licensing Process Take?

The duration of the licensing process varies depending on the risk level of the business and the completeness of the submitted documents.

For low-risk businesses, licenses are typically issued within a few days.

For medium- to high-risk businesses, the process may take longer due to the need for more thorough evaluation and verification by relevant authorities.

What Should You Do If Your Business License Application Is Rejected

If your business license application is rejected, you will receive a notification outlining the reasons for the rejection. You may address the identified issues or deficiencies and resubmit your application through the OSS system.

What Are the Obligations of Business Owners After Obtaining an OSS RBA License?

Business owners are required to comply with all applicable laws and regulations, including routine reporting and adherence to established operational standards.

For medium- and high-risk businesses, owners must also implement appropriate environmental and health management measures in accordance with the conditions outlined in the issued license.

What is LKPM (Investment Activity Report)?

LKPM is a mandatory report submitted by investment companies to the Indonesia Investment Coordinating Board (BKPM) or other relevant authorities. The report contains information on the realization of investments and the operational activities of the company.

LKPM must be submitted periodically on a quarterly basis, with the following reporting deadlines:

• Q1: April 10

• Q2: July 10

• Q3: October 10

• Q4: January 10 of the following year

What Are the Consequences of Failing to Submit LKPM?

Companies that fail to submit the LKPM on timeor do not submit it at all may be subject to administrative sanctions. These may include a written warning, temporary suspension of business activities, or revocation of the business license.