Revision of OSS Regulations Expected to Provide Greater Certainty for Investors

The Ministry of Investment and Downstream Industry/Investment Coordinating Board (“BKPM”) is currently preparing a revision to Regulation of the Minister of Investment and Downstream Industry/Head of BKPM No. 5 of 2025 on Guidelines and Procedures for the Implementation of Risk-Based Business Licensing and Investment Facilities through the Online Single Submission (“OSS”) system.

Ichsan Zulkarnaen, Deputy for Investment Planning at the Ministry of Investment and Downstream Industry/BKPM, stated that the revision is intended to provide greater legal certainty while improving the efficiency of the licensing process for investors. One of the proposed changes is the introduction of a Service Level Agreement (“SLA”) to establish clearer and more measurable service time standards.

“We are preparing a revision to Regulation of the Minister of Investment and Downstream Industry No. 5 of 2025 so that it can continue to be improved,” Ichsan said.

In addition to the SLA, the revised regulation will regulate the positive fictitious approval mechanism (fiktif positif) and the grandfather clause in the licensing process. These provisions are expected to provide investors with greater certainty regarding the timeframe for completion of services, as well as the consequences if an application is not processed within the prescribed period.

Accordingly, the revised regulation has the potential to establish a more predictable licensing process and reduce uncertainty regarding the timeframe for investors to commence or expand their business activities. The regulatory improvements also take into account the indicators under the World Bank’s Business Ready (“B-Ready”) framework, as part of efforts to strengthen business certainty and improve perceptions among investors and rating agencies regarding Indonesia’s investment climate.