BKPM Simplifies Risk-Based OSS Regulations

The Ministry of Investment and Downstream Industry/Investment Coordinating Board (Badan Koordinasi Penanaman Modal - "BKPM") is deregulating the Implementing Regulation of Risk-Based Business Licensing (Peraturan Pelaksanaan Perizinan Berusaha Berbasis Risiko - “PBBR”) in the Online Single Submission ("OSS") system. The policy is outlined in the Draft Regulation of the Minister of Investment and Downstream Industry on Guidelines and Procedures for the Organization of PBBR and Investment Facilities Through the OSS System (“Draft Regulation”) as a replacement for Regulation of BKPM No. 3 of 2021 on the Electronically-Integrated PBBR System (Regulation 3/2021), Regulation of BKPM No. 4 of 2021 on Guidelines and Procedures for PBBR Services and Investment Facilities (“Regulation 4/2021”), and Regulation of BKPM No. 5 of 2021 on Guidelines and Procedures for PBBR Supervision (Regulation 5/2021) which are targeted to be finalized by October this year.

“These three regulations are related to the system, company licensing, and supervision and its procedures. We are currently adjusting these three to simplify them into a single new BKPM regulation,” said Dendy Aprian, Director of Investment Deregulation at BKPM, to Hukumonline.

The Draft Regulation will serve as the Implementation Guidelines and Technical Guidelines for Regulation of the Government No. 28 of 2025 on the Organization of Risk-Based Business Licensing ("Regulation 28/2025"), which replaces Regulation of the Government No. 5 of 2021 ("Regulation 5/2021"). The deregulation is being conducted in accordance with the instructions of the Ministry of Coordinating Economic Affairs (Kemenko - Ekon).

“The deadline is October 5 this year. The process is currently underway, and hopefully it will be enacted by the last week of July or at the latest by the beginning of August,” he explained.