LEGAL UPDATES BY BEPARTNERS
Adapting to the New OSS System
21 September 2021

The OSS RBA has recently come online in early August 2021 following its scheduled release on 2 June 2021. The launch of OSS RBA, managed by the Ministry of Investment/Indonesian Investment Coordinating Board (“BKPM”), has been postponed several times in order to better improve the system, as was announced by the Minister of Investment/Head of BKPM Circular Letter No. 17 of 2021 and No. 18 of 2021, as well as announcements from the Ministry of Investment/BKPM No. 8 of 2021. The system went live on 9 August 2021 by way of decree by President Joko Widodo, though it was launched in a state that still requires periodic improvements as it is still in its developmental stages. 

 

As of this article’s date of publishing, there are still some technical issues experienced by business actors when accessing OSS RBA, including:

 

  1. There are still errors in the migration of data and access rights from the previous OSS system (OSS 1.1) to the new OSS system (OSS RBA)

 

As of date, some business actors’ accounts from OSS 1.1 have not been properly migrated onto OSS RBA, and there are even some accounts or data that are not detected in OSS RBA. We also found that there are several cases where the business actor did not receive the verification email for the account registration, resulting in some business actors being left unable to access their Business Identification Number (locally known as Nomor Induk Berusaha or “NIB”) and several other forms of business licenses.

 

  1. Unclear implementation of Grandfather Clauses

 

Following BKPM Regulation No. 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (“BKPM Regulation No. 4/2021”), there is an increase in the minimum paid-up capital requirement from IDR 2.5 billion to IDR 10 billion.

 

There are currently no clear provisions that stipulate the applicability of Grandfather Clauses nor the instances where implementation would be appropriate, especially for PMAs that were established before the enactment of BKPM Regulation No. 4/2021. There is no clear provision whether the PMAs that conduct a corporate action such as changes in shareholder structure or add new business classification will be required to comply with the new minimum paid-up capital requirements.

 

As the OSS RBA is a newly-launched system that still has some technical issues, some immediate actions need to be looked at by affected companies, these include:

 

  1. Migration of companies’ OSS access rights obtained from the OSS 1.1 System:  Since the OSS RBA system refers to the access rights of an entity (while OSS 1.1 system referred to the access rights of an individual, such as director, commissioner, etc.), the existing companies’ access rights under OSS 1.1 system would need to be migrated to access rights under OSS RBA;

 

  1. Checking on companies’ investment data recorded in OSS RBA: Through the migration of data from the OSS 1.1 to OSS RBA, the investment data initially recorded in the OSS 1.1 should automatically be recorded in the OSS RBA. However, that is not always the case, and companies need to check whether their investment data or information initially recorded in OSS 1.1 has been correctly recorded in the OSS RBA. If not, the relevant data might need to be manually corrected; and

 

  1. Checking on companies’ registered KBLI: There is a new issuance of the 2020 Classification Business Codes (“KBLI 2020”). Therefore, for companies established before the issuance of KBLI 2020 (or still using the 2017 KBLI), it is necessary to check and see whether a KBLI adjustment (as initially recorded in the companies’ Deed of Establishment and Business License) is required by OSS RBA.

 

Please be advised that the OSS RBA system is a developing system, and it is important for companies to closely monitor the three essential items above.

 

Should there be any queries related to this regulation or to find out if this affects your business or personal interest, please do not hesitate to contact us.

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