How do I Qualify for Business Verification?
Corporate Secretary Service – Since the enactment of Law Number 11 of 2020 concerning Job Creation (Job Creation Law), the government has updated the mechanism for determining business licenses and adjusted it to Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.
This is done as an effort to simplify and speed up the business licensing process for business actors. Business licensing, which was previously based on permits, is now determined based on the level of business risk. That all licenses will go through one door, namely One Single Submission Risk Based Approach (OSS – RBA) or better known as Risk Based OSS.
Definition of OSS RBA
OSS RBA or Risk-Based Business Licensing has an understanding:
Risk-based business licensing is the legality given to business actors to start and run businesses and/or activities based on the level of risk of the business activities carried out. In accordance with Article 7 of PP No. 5 of 2021, risk-based business licensing is carried out based on the determination of the level of risk and the scale rating of business activities, which include Micro and Small Enterprises (MSEs) and non-MSEs.
Risk-based licensing changes the concept of licensing where previously licensing requirements had to be fulfilled first at the beginning, now it is simplified with a verification system (verification can be done afterwards). After business actors conduct business activities in accordance with predetermined standards, the government, as the authority, will verify the fulfillment of these standards.
Read Also: How Do I Get My Business Recognised?
In accordance with PP No. 5 of 2021, the implementation of business licensing in Risk-Based OSS is carried out based on a risk analysis assessment of business activities as follows:
- Identification of business activities the identification of business activities refers to the description of the business sector based on the Indonesian Business Field Standard Classification Code (KBLI).
- Determination and Assessment of Risks, namely: a. Determination and assessment of hazards; b. Assessment of the potential for hazards; and c. Determination of risk levels.
- Implementation of Risk Analysis and Determination of Business Licensing Type From the results of the risk analysis, the risk level of business activities for each business field based on the 5-digit KBLI will be obtained, which determines the type of Business Licensing for each business activity which is divided into low, medium and high-risk business activities.
Types of Risk in OSS RBA
Based on the risk analysis assessment of business activities, the risk level will be divided into the following:
- Business activities with a low-risk level;
- Business activities with a low-medium risk level;
- Business activities with a medium-high risk level; and
- Business activities with a high-risk level
In Risk-Based OSS, Standard Certificates will be automatically issued to business activities with low-risk and medium-low-risk levels.
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