Remarks of President of the Republic of Indonesia at the Launching of Risk-Based Online Single Submission (OSS) System, 9 August 2021, at the Investment Control and Command Center, Minister of Investment/Head of the Investment Coordinating Board (BKPM), Jakarta
Assalamu’alaikum warahmatullahi wabarakatuh,
Peace and prosperity be upon us all,
Greetings of virtue.
Honorable Minister of Investment, Minister of Finance, and all Ministers of the Onward Indonesia Cabinet;
Honorable Governors, Regents, and Mayors throughout Indonesia;
Honorable Heads of PTSP (One-Stop Integrated Service) Offices throughout the country;
Honorable Chairperson of the Indonesian Chamber of Commerce and Industry (KADIN) and Chairperson of the Indonesian Young Entrepreneurs Association (HIPMI);
The pandemic must not halt our efforts to carry out structural reforms. We will continue with various structural reform agendas. We will continue to streamline regulations that hinder ease of doing business. We will continue to simplify our business and investment procedures.
For what reasons? We want to create a better business climate in our country; making it easier for micro, small and medium enterprises to start business. We want to improve investor confidence in order to create as many job opportunities as possible so that it becomes a solution to the problem of increasing unemployment due as an impact of the pandemic.
Ladies and Gentlemen,
In the 2020 World Bank report, our country is ranked 73rd out of 190 countries in terms of the Ease of Doing Business index. It means that we are in the easy category. But the easy category is not enough. We must be able to improve it again and again, from easy to very easy. That is our target.
The key lies in licensing reforms in which integrated, fast, and simple business licensing becomes an instrument that determines our competitiveness to attract investment.
Today, we are launching a risk-based Online Single Submission (OSS) system. This is a highly significant reform in licensing by using an online licensing service integrated with a risk-based licensing paradigm.
The type of licensing will be adjusted to the level of risk. The licensing process between MSMEs and large businesses will no longer be the same. High-risk businesses require a business permit. Medium-risk businesses require a permit in the form of a standard certificate and low-risk businesses only require a permit in the form of a registration or a Business Identification Number (NIB) from the OSS system. This will improve ease of doing business in Indonesia.
Therefore, first, I order ministers and heads of institutions, as well as governors, regents, and mayors to be disciplined in monitoring the ease in the OSS system.
I will directly supervise the implementation on the ground, whether the requirements are getting easier, whether the number of permits is decreasing, whether the process is getting simpler, whether the costs are more efficient, whether the standards are the same throughout Indonesia, and whether the service is getting faster. I will monitor them. If we can do this, I believe investments, whether micro-scale, small-scale, medium-scale, or large-scale, will increase in our country.
Let me also underscore that the Risk-Based OSS service is not meant to reduce regional authority. This has been stated by Minister of Investment. Instead, it provides service standards for all levels of governments that issue permits, both at the central level and regional level so that their responsibilities are clearer and the services can also be in synergy.
I have heard a lot about the aspirations of business players from small, medium to large, all of them share similar tones. Business players need services that are easy, fast, and simple. If we can provide this, I believe it will have a significant impact on the national and regional economy.
Second, I also call on entrepreneurs, domestic and foreign investors, MSMEs players, as well as large business players to benefit from the super-easy service in order to boost investment and create the widest possible employment opportunities.
I no longer want to hear about the difficulties faced by entrepreneurs. I no longer want to hear about bribery. Everything must be done openly and transparently. We must make it easier for entrepreneurs. If there are government officials who are corrupt, report them to me.
Once again, let me reiterate this reform of the ease of licensing services is intended to provide ease of doing business for micro, small and medium enterprises, to encourage more new entrepreneurs, to accelerate the transformation of the informal sector into the formal sector, and most importantly, to create as many jobs as possible.
That concludes my remarks.
By saying bismillahirrahmanirrahim, I officially launch the Risk-Based Online Single Submission (OSS) System.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh. (FI/EP)