Jumat, Februari 5, 2021

Draft Regulation of the Government on the Implementation of Risk-Based Business Licensing

In order to initiate and conduct business activities, businesses are required to fulfill various risk-based business licensing criteria, which relate to: 1) Indonesian Business Field Classification (Klasifikasi Baku Lapangan Usaha Indonesia – "KBLI") codes and references, KBLI titles, scope of activities, risk parameters, risk levels, business licensing, time periods, validity periods and business licensing authorities; 2) Risk-based business licensing requirements and/or obligations; 3) Risk-based business licensing guidelines; and 4) Business activity standards and/or product standards.
Business activities should be implemented in the following stages: 1) Preparatory stage (i.e. land acquisition, construction of buildings, procurement of equipment or facilities, procurement of human resources, fulfillment of business standards and/or other activities prior to commencing operational and/or commercial operations); and 2) Operational and/or commercial stage (i.e. production, logistics and distribution, marketing and/or other activities which are undertaken for operational and/or commercial purposes).
Business licenses are issued by the central government and local governments through: 1) Online Single Submission (“OSS”) institutions; 2) The OSS institution on behalf of Ministers or Heads of Institutions; 3) Heads of Provincial One-Stop Service and Investment Service (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu – “DPMPTSP”) facilities on behalf of governors; 4) Heads of DPMPTSP at the regency or municipal level on behalf of regents or mayors; 5) Administrators of Special Economic Zones (Kawasan Ekonomi Khusus – “KEK”); and 6) Heads of Free-Trade Zone and Free Port (Kawasan Perdagangan Bebas dan Pelabuhan Bebas - “KPBPB”) concession boards.
All risk-based business licenses should be processed electronically and integrated into the OSS system by the following parties: 1) Ministries or agencies; 2) Provincial governments; 3) District- or city-level governments; 4) KEK administrators; 5) KPBPB concession boards; and 6) Business players.
This draft regulation is currently being deliberated by the government and thus further changes may be introduced. The draft regulation can be accessed here.

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In order to initiate and conduct business activities, businesses are required to fulfill various risk-based business licensing criteria, which relate to: 1) Indonesian Business Field Classification (Klasifikasi Baku Lapangan Usaha Indonesia – "KBLI") codes and references, KBLI titles, scope of activities, risk parameters, risk levels, business licensing, time periods, validity periods and business licensing authorities; 2) Risk-based business licensing requirements and/or obligations; 3) Risk-based business licensing guidelines; and 4) Business activity standards and/or product standards.
Business activities should be implemented in the following stages: 1) Preparatory stage (i.e. land acquisition, construction of buildings, procurement of equipment or facilities, procurement of human resources, fulfillment of business standards and/or other activities prior to commencing operational and/or commercial operations); and 2) Operational and/or commercial stage (i.e. production, logistics and distribution, marketing and/or other activities which are undertaken for operational and/or commercial purposes).
Business licenses are issued by the central government and local governments through: 1) Online Single Submission (“OSS”) institutions; 2) The OSS institution on behalf of Ministers or Heads of Institutions; 3) Heads of Provincial One-Stop Service and Investment Service (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu – “DPMPTSP”) facilities on behalf of governors; 4) Heads of DPMPTSP at the regency or municipal level on behalf of regents or mayors; 5) Administrators of Special Economic Zones (Kawasan Ekonomi Khusus – “KEK”); and 6) Heads of Free-Trade Zone and Free Port (Kawasan Perdagangan Bebas dan Pelabuhan Bebas - “KPBPB”) concession boards.
All risk-based business licenses should be processed electronically and integrated into the OSS system by the following parties: 1) Ministries or agencies; 2) Provincial governments; 3) District- or city-level governments; 4) KEK administrators; 5) KPBPB concession boards; and 6) Business players.
This draft regulation is currently being deliberated by the government and thus further changes may be introduced. The draft regulation can be accessed here.

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