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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Get to know the OSS Standard Certificate for Business Activity Licences

The government has simplified the licensing process for business actors through the One Single Submission Risk Based Approach (OSS-RBA) system or the licensing process through one door based on risk categories. Where, in order to obtain a licence, business actors not only need an NIB, but must also have an OSS standard certificate.

This is important, because OSS standard certificates are used to assess whether business actors have met the standards set. In addition, the OSS standard certificate is useful as a form of legality for business actors in carrying out business activities that are in accordance with standards.

However, it should also be noted that in accordance with articles 13 and 14 of Government Regulation No. 5 of 2021, business actors who must have OSS standard certification are only business activities that have low medium and high medium risks.

Then, what are the provisions regarding this OSS standard certificate? And how to take care of it? Check out the full explanation here!

What is an OSS Standard Certificate?
Before discussing more about the standard certificate, please note that Articles 12-15 of PP 5/2021 and OSS have divided business categories based on risk and the types of business licences required, as follows:

Low Risk Level
At the low risk level, it is sufficient to have a Business Identification Number (NIB).

Medium Risk Level
At the medium risk level, businesses are required to have an NIB plus a Standard Certificate.

High Medium Risk Level
At the medium-high risk level, businesses are required to have a NIB with a Standard Certificate that must be verified in advance by OSS.

High Risk Level
At a high risk level, business actors are required to have NIB and Permits which are approvals from the central government or local government that must be owned before running their business.

From this division, it can be seen that a standard certificate is only required for business activities with a low-medium risk level and high-medium tends to be for Non-UMK businesses (Article 13 paragraph (1) and Article 14 paragraph (1) of GR 5/2021).

Article 1 Point 13 of GR 5/2021 defines standard certificate as a statement and/or proof of fulfilment of standards for the implementation of business activities. For this reason, standard certificates have several important functions for business actors, including:

  1. Assessing whether business actors have fulfilled the set standards.
  2. Proving the legality of business actors in carrying out business activities in accordance with applicable standards.
  3. As a guarantee of business continuity because the business activities have met the standards set in accordance with the provisions in the Government Regulation.
  4. Facilitate and accelerate the licensing process of business actors through the OSS system.

 

Types of OSS Standard Certificates
As explained, OSS standard certificate licensing is required if the business field/KBLI falls into the low and high medium.

 

Low Medium Risk Standard Certificate
In this low medium risk business activity, every business actor must fulfil the requirements in making NIB by filling out a statement of ability to meet business activity standards and environmental management efforts and environmental monitoring efforts (UKL-UPL) in the form provided at OSS.

However, if the business activity does not require (UKL-UPL), then the business actor only fills in the Environmental Management and Monitoring Affidavit (SPPL) form available on the OSS system. The Standard Certificate will be issued immediately without waiting for verification from the relevant Institution.

 

High Medium Risk Standard Certificate
Different from business activities with low medium risk. Standard Certificates issued at this risk require prior verification by:

  • Related ministries/agencies
  • Regional authorities
  • Regency / city regional apparatus (SEZ), or
  • KPBPB Business Entity

Business actors must comply with business activity standards through OSS to obtain a verified Standard Certificate. If it does not meet the requirements, it is given 1 year to complete it. Otherwise, the NIB and Standard Certificate may be cancelled.

 

How to Get an OSS Standard Certificate?
The process of obtaining an OSS standard certificate involves several steps.

  1. Log in to the OSS website.
  2. Select the business field code.
  3. Select Fulfilment of Requirements.
  4. Fill in the fulfilment document. Upload the requested documents.
  5. Wait for Verification process. There are several verification statuses:
  • "Unprocessed" status means that the system has received your requirements, but it has not yet been processed by the relevant Institution.
  • "Approved" status means that it is being processed by the relevant authorities.
  • "Approved" status means your application is approved and the Standard Certificate is Verified.

 

Source : kontrakhukum.com

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