The Types of Risk Levels in OSS RBA – Do you now know that the business licensing system in Indonesia already uses a risk-based online licensing system? OSS RBA. This system application makes it easier for business actors to register their businesses online through one platform with simpler and faster licensing procedures.

What is OSS RBA?

Online Single Submission Risk Based Approach (OSS-RBA) or Risk Based Business Licensing is a business permit given to business actors to start and carry out their business activities which are assessed based on the level of risk of business activities.

The implementation of Risk-Based Business Licensing through the Online Single Submission (OSS) System is an implementation of Law Number 11 of 2020 concerning Job Creation. Risk-Based OSS must be used by Business Actors, Ministries/Institutions, Regional Governments, Special Economic Zone (KEK) Administrators, and Free Port Free Trade Zone Management Bodies (KPBPB). Based on Government Regulation Number 5 of 2021 there are 1,702 business activities consisting of 1,349 Standard Classification of Indonesian Business Fields (KBLI) which has been implemented in the Risk-Based OSS System.

Risk levels in OSS RBA?

Risk Level is the potential for a hazard to occur to health, safety, the environment, utilization of natural resources and/or other hazards which fall into the Low, Medium or High categories > Explanation of Article 7 paragraph 1 of Law Number 11 of 2020 concerning Job Creation.

The risk level is divided into 4 categories, namely Low (R), Medium Low (MR), Medium High (MT), and High (T).

Low risk level (R)

Business licensing for business activities with low risk is only in the form of a Business Identification Number (NIB) as the identity of the business actor as well as the legality for carrying out business activities.

Medium-low risk level (MR)

Business licensing for business activities with a medium to low level of risk is in the form of a Business Identification Number (NIB) & Standard Self-Declaration Certificate.

Medium-high risk level (MT)

Similar to businesses with medium-low risk levels, activities with medium-high risk levels also require business permits in the form of a Business Identification Number (NIB) and standard certificates. However, a standard certificate can only be issued after the NIB is issued and the business actor makes a statement through the OSS system based on the results of verification of compliance with standards for the implementation of business activities by the business actor.

= Business Identification Number (NIB) & Verified Standard Certificate.

High level of risk (T)

Business licensing for high risk business activities in the form of a Business Identification Number (NIB) and permits. The permit referred to here is the approval of the central or regional government for the implementation of business activities which entrepreneurs must fulfill before carrying out their business.

= Business Identification Number (NIB), Verified Standard Certificate, Business License Approved by the relevant government agency.

Business scale Apart from determining the level of risk, business licensing is also carried out by determining the scale of business activities, which includes (Article 35 paragraph 3 PP 7/2021):

Micro businesses with maximum business capital of 1 billion,
Small businesses with business capital of 5 billion – 10 billion,
Large businesses with business capital above 10 billion.

Business fields in the OSS RBA system

Not all business fields can use the OSS RBA system. This system applies to 17 business sectors such as:

Maritime Affairs and Fisheries
Agriculture
Environmental and forestry
Energy and Mineral Resources
Universality
Industry
Trading
Public works and public housing
Transportation
Health, medicine and food
Education and culture
Tourist
Religious
Post, telecommunications, broadcasting, and electronic transaction systems
Defense and security
Employment
Finance

Conclusion

As informed above, the OSS RBA system has different business licensing levels, each level being Low (R), Medium Low (MR), Medium High (MT), and High (T).

If you experience difficulties in the application process or don’t know about the process flow, you can use Indosevice.

Indoservice, a secretarial and licensing consulting company firm that can assist you in setting up a company in Indonesia and related to business licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.

We and the team will assist you in the process of establishing a PT and obtaining permits related to your business in Indonesia. Call us now for more information at Telp. +62877-1449-8500 or email admin@indoservice.co.id.

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The Types of Risk Levels in OSS RBA

See Also:

What is OSS RBA?