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The Online Single Submission: Indonesia's Latest Effort To Improve The Ease Of Doing Business

On 21 June 2018, the Government of the Republic of Indonesia issued Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services ("GR No. 24/2018"). GR No. 24/2018 seeks to improve the ease of doing business and increase investment in Indonesia. It also reflects the Government's direction to shift from its pre-commencing supervision system to post-commencing supervision. This is done by reducing the number of required business licenses and permits before one can commence business operation in Indonesia, as well as simplifying their application processes.

BKPM Suspends Operation Pending Launch of New Online Single Submission System

At end of June 2018, the government enacted Government Regulation 24/2018 concerning Electronically Integrated Business Licensing Service ("GR 24/2018"), which introduces the so-called Online Single Submission ("OSS") system for the issuance of licenses and permits by the government. The objective of GR 24/2018 is to have a harmonised, unified, and simplified licensing process nationwide. Based on GR 24/2018, the OSS system will be undertaken by an ’OSS Institution’, which is a non-Ministerial government agency engaged in investment coordination.

Recently, the Indonesian Investment Board (the "BKPM") issued a press release informing the suspension of all license processing with effect from 29 June 2018, pending the launch of the OSS system. The OSS system will be a "one-roof" online licensing system for the handling of licenses previously managed by different ministries and government agencies, including the BKPM. The system will for the time being be administered by the Coordinating Ministry of Economic Affairs, until such time the OSS Institution is officially established or designated.

Indonesian Customs Recordation: Ready for Implementation

The Minister of Finance has issued Regulation No. 40/PMK.04/2018 regarding Customs Recordation, Preventive Measure, Guarantee, Suspension, Monitoring and Evaluation on import and export control of Goods suspected of infringing Intellectual Property Rights ("MFR No. 40/2018"). MFR No. 40/2018, which comes into operation this month, implements Government Regulation No. 20 of 2017 on Import and Export control for Goods suspected of infringing Intellectual Property Rights.