OSS RBA System: How to Obtain a Business License Based on Risk Level
OSS RBA System in Indonesia: How to Obtain a Business License Based on Risk Level
Indonesia is actively reforming its business environment, and since 2021, business licensing has shifted to a new model — the OSS RBA (Online Single Submission Risk-Based Approach) system. Unlike the previous sector-based approach, the new system classifies licensing requirements primarily by risk level associated with each business activity.
In this article, you will learn how the OSS RBA system works, what the different risk levels are, what permits are required at each level, how to register a company online, and what foreign investors (especially owners of PT PMA — foreign-owned companies) need to know.
What Is OSS RBA and Why It Was Introduced
OSS RBA is a centralized digital platform at oss.go.id, developed by the Indonesian government under Government Regulation No. 5 of 2021 (PP No. 5/2021). It is used for business registration, obtaining licenses, and submitting compliance declarations.
The key innovation is risk-based licensing, with risks classified according to the following criteria:
- impact on public health and safety,
- environmental risks,
- threats to public order and economic stability.
As of 2023, the OSS RBA version 1.1/1.2 is in use, providing improved risk mapping, integration with tax authorities, and automated classification based on KBLI codes — the Indonesian Standard Business Classification.
Risk Levels in OSS RBA: What License You Need
The OSS RBA system categorizes business activities into four risk levels:
| Risk Level | Required Documents | Examples of Business Activities (KBLI) |
|---|---|---|
| Low Risk | Only NIB | 62011 — Software Development 70209 — Consulting Without Office 47911 — Online Sales |
| Medium-Low Risk | NIB + Standards Declaration | 56101 — Small Cafés or Warungs 49411 — Inner-City Logistics 47511 — Retail Without Warehouse |
| Medium-High Risk | NIB + Standards Compliance Verification | 21011 — Pharmaceutical Manufacturing 86101 — Clinics 52101 — Warehouse Management |
| High Risk | NIB + License After Audit | 20111 — Chemical Manufacturing 41011 — Large-Scale Construction 05100 — Coal Mining |
Important: you do not determine the risk level — the system does, automatically based on your KBLI code. That's why correct classification is crucial to avoid rejections and delays.
What Is an NIB and Why It’s Required
NIB (Nomor Induk Berusaha) is a Business Identification Number required for all companies regardless of risk level. Obtaining an NIB is the first step toward legal business operations in Indonesia.
The NIB serves multiple purposes simultaneously:
- acts as your company ID number,
- registers the business with tax authorities (NPWP),
- provides access to customs for import/export activities,
- is a prerequisite for other licenses and certifications.
Without an NIB, a business cannot open a bank account, sign contracts, or hire employees.
Step-by-Step OSS RBA Business Registration
How to Register Your Business Online:
- Create an account on the OSS platform: https://oss.go.id.
- Select your legal entity type: foreign investors should select PT PMA (Penanaman Modal Asing); domestic businesses may choose PT, CV, etc.
- Enter your company details: founders, address, capital, and KBLI code describing your business.
- The system will automatically determine your risk level → which affects the next steps.
- Obtain your NIB — usually instantly or within 1–2 business days.
- If applicable: submit a standards declaration, pass an audit, or obtain licenses from relevant agencies.
Which Agencies May Conduct Inspections:
- Ministry of Health — for clinics, pharmaceuticals
- Ministry of Environment and Forestry — for manufacturing and chemicals
- DPUPR — for construction and infrastructure
- BKPM (Indonesia Investment Coordinating Board) — for foreign investment
Pro Tip: Before registering, use the official KBLI code directory to identify the most accurate classification for your business.
Licensing for PT PMA — Foreign-Owned Companies
If you're a foreign investor looking to operate a business in Indonesia, you must establish a company under the PT PMA (Perseroan Terbatas Penanaman Modal Asing) structure. OSS RBA requirements apply to PT PMA, but with added criteria:
- Minimum paid-up capital: IDR 10 billion (~USD 650,000),
- At least two shareholders, one of whom may be a foreign legal entity,
- About 80% of business sectors are open to foreign ownership, but certain industries (healthcare, security, media) are restricted (Negative List).
PT PMA must register via OSS RBA, but they can only receive their NIB after BKPM approval and obtaining some mandatory local permits.
Frequently Asked Questions
❓ How do I get an NIB in Indonesia?
Register at oss.go.id, enter your KBLI code and company info — and receive your NIB within 1–2 business days.
❓ What if my business activity changes?
You must update your company profile in the OSS system. If your KBLI code changes, the system may recalculate your risk level and request new documents.
❓ Can I operate a business without a license if it's low risk?
Yes. For businesses classified as “low risk,” obtaining just the NIB is sufficient to begin operations — often within a day.
❓ What's more important: the KBLI code or business description?
The most critical factor is the KBLI code. It directly determines your risk classification, obligations, and necessary licenses.
❓ What are the most common mistakes?
- Incorrect KBLI code selection — resulting in higher-than-necessary risk level assignment.
- Overlooking local permit requirements: OSS issues the NIB, but some regions require separate approvals.
- Setting up a PT PMA without understanding capital requirements or sector restrictions for foreign ownership.
Conclusion: Digital Licensing Simplifies the Process, but Accuracy Is Essential
Indonesia’s OSS RBA system has made business licensing more transparent and efficient. Over 70–80% of new companies fall into the low or medium-low risk categories — meaning they can begin operating almost immediately after obtaining an NIB.
However, choosing the correct KBLI code, preparing the required documents, and understanding specific obligations based on risk levels are critical. Foreign investors especially must comply with PT PMA requirements and review sectoral restrictions carefully.
Recommendation: If unsure, consult with a licensed business advisor or legal expert in Indonesia. This will reduce errors and speed up your business launch.
Proper registration and valid licensing ensure credibility with authorities, partners, and customers alike.
Useful Resources
📌 Quick OSS RBA Licensing Checklist
- ✅ Correctly identify your KBLI code
- ✅ Determine your risk level
- ✅ Obtain your NIB (mandatory)
- ✅ If required — pass an audit / get certifications
- ✅ Account for local PT PMA or industry-specific requirements
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