Licensing & Compliance (OSS RBA)
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Ministry of Investment / BKPM Regulation Update
BKPM Issues Updated Guidelines for Risk-Based Business Licensing (OSS-RBA) and Foreign Direct Investment (PT PMA)
BKPM Terbitkan Panduan Terbaru Perizinan Berusaha Berbasis Risiko (OSS-RBA) dan Investasi Asing (PT PMA)
Executive Legal Takeaway
BKPM clarifies the IDR 10 Billion minimum investment requirement per KBLI code for foreign direct investors, introducing expedited automated approvals for low and medium-low risk sectors.
The Ministry of Investment / Indonesia Investment Coordinating Board (BKPM) has updated the technical provisions for the Online Single Submission Risk-Based Approach (OSS-RBA) platform under Government Regulation No. 5/2021.
Key Developments:
1. **Capital Allocation Rules for PT PMA:** The minimum issued and paid-up capital requirement of IDR 10,000,000,000 (ten billion Rupiah), excluding land and buildings, is strictly evaluated on a per-5-digit KBLI code basis at one location.
2. **Streamlined Low-Risk Issuance:** Low-risk business activities receive their NIB (Nomor Induk Berusaha) immediately upon online submission, which legally functions as both the entity identification and final operational license.
3. **LKPM Reporting Enforcement:** Active investment report (Laporan Kegiatan Penanaman Modal - LKPM) filing is now strictly enforced quarterly for medium and large scale enterprises. Failure to report through OSS triggers progressive sanctions: first warning, second warning, temporary suspension, and ultimately license revocation.
Practical Strategy for Investors:
Ensure that prospective shareholders prepare apostilled certificates of incorporation or foreign passports well in advance to avoid notarial delays in Deed of Establishment execution.
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