In a new decree signed 21 June, President Jokowi has issued a new government regulation known as Online Single Submission (OSS), a system that will regulate the nation's business registration procedures. 

It is expected that the President will announce the OSS regulation's immediate effect in the next coming days.

To understand the significance of this new legislation, WILLIAMS MEDIA sat down with comprehensive and integrated corporate services provider Okusi Associates' Senior Consultant, Gary Dean. 

The change in legislation, according to Dean was a long time coming, "The OSS has been in planning since Jokowi came into office, so it's not a surprise at all," he said. 

"What is surprising is the apparent determination of the government to actually make this work. There have been numerous attempts at establishing OSS for company establishments and permits over the past 20 years and all have failed miserably."

Dean continued, "Also surprising, was the government moving the responsibility for this system away from the BKPM to the Coordinating Ministry for the Economy, which is another sign that the government is determined to make the OSS work this time."

According to Dean, the new development will address the following:

1. "The central government is presenting a full frontal attack on the bureaucracy and anti-business culture."
2. "A number of company documents, such as the TDP [Company Registration Certificate], IUT [Permanent business license] and API [Import Identification Number] have been completely eliminated.
3. "There are significant sanctions for provincial and regency governments that do not cooperate with the new laws."

As for the impact these changes will have on foreign investment in Indonesia in the short term and moving forward, Dean concludes, "The scope of the OSS is extremely ambitious, some might even say 'courageous.' Investors, both foreign and local, should expect significant disruption to the processing of new companies and permits over the next few months."

"The bureaucracy Indonesia-wide can be expected to be active in attempting to make this system fail, and they may succeed to a degree," he said. "In the longer term, if it succeeds, the OSS will bring enormous benefits to all businesses throughout the archipelago. Processing times will be slashed, as will costs," he said. 

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