Comparison between the Establishment of LLC according to Law No 40 of year 2007

and Online Single Submission (Government Regulation No. 24 of year 2018)

Name:
- Christian (1606897744)
- Caesar Lintang Kawani (1606897725)
- Omar Rahman Rivaldo
- Pritta Maharani Pribadi (1606864222)
- Rama Prima Prayoga
- Regina Triana Kamila (1606897946)
FH UI KKI 2016
The Law of Organization Business

Table of Comparison

Law No. 40/2007 on Online Single Submission

Limited Liability Company (Government Regulation
No. 24 of year 2018)
- Business permit - Business Licensing fees:
management 1. Non-tax revenue;
- The making of notarial 2. Import duties and / or
deed export duties;
- Notary service fees 3. Excise; and / or
- The cost of making a Regional tax or regional
business by optimizing the retribution
average working time of
30 days
Cost
- Trade Business License
(SIUP)
- Certificate of Company
Registration (TDP)
- Fees for announcements
required in the Official
Gazette of the Republic of
Indonesia and Additional
to the State Gazette of the
 Republic of Indonesia
- Fees to obtain a copy of
the Ministerial Decree
concerning the
legalization of the
Company's legal entity
- Non-tax revenue Regional
tax or regional retribution
- Deed of establishment - Business permits and
will be done in 3-4 days commercial/operating
- Trade Business License permit -> 60 minutes
(SIUP) and Certificate of - Fulfillment of Location
Company Registration Permit commitment ->
(TDP) will be issued in max 12 days
approximately 10 days - Fulfillment of
The decree concerning the Environmental Permit
legalization of a legal entity Commitment:
of a Limited Liability 1. The time to complete
Company by the Minister of UKL-UPL is 15 days
Justice will be issued at the from the UKL-UPL
Length latest 14 days. commitment
statement.
2. The AMDAL
settlement time is 115
days from the
AMDAL commitment
statement.
- Fulfillment of Location of
Waters Permit
Commitment -> maximum
10 days after the OSS
Institute issues a Location
Permit
 - Fulfillment of Building
Permit Commitment -> 30
days after the commitment
statement.
- There must be deed of - Before accessing OSS, the
establishment made by founder must complete the
notary. process of ratifying the
- The deed of establishment business entity in the
must be submitted through Ministry of Law and
electronic information Human Rights through
system administration AHU Online
services for legal entities - Create an account or user-
by filling in the form of ID by inputting the
establishment either by Population Registration
the notary or by the Number (NIK) of the
founder themselves to the Business Entity Person in
Department of Justice to Charge or the President
be ratified by the Minister Director
Bureaucracy of Justice. (If submitted - Enter company email for
by the founder, there must account activation so that
be cover letter from the the OSS system can send
notary) e-mails for registration
- If there is no objections and OSS account
from the Minister, the verification
applicant (founder or - Fill in the application for
notary) must submit the Business Registration
physical application letter Number (NIB) so that the
attached with supporting founder can manage the
documents. business licensing through
- The Minister will issue a OSS. This NIB also
decree concerning the applies as a Company
legalization of a legal Registration Certificate
entity of a Limited (TDP), Import
 Liability Company which Identification Number
is signed electronically (API), and Customs
and followed by the Access. NIB can be
issuance of the last decree obtained by filling in the
from the Ministry of required data such as
Justice regarding the company data,
legalization of deed of shareholders, capital
establishment. ownership, investment
- The ratified deed of value and plan for the use
establishment along with of labor, including foreign
the ratification decree workers, then filling in the
shall be registered to the business field information
Registrar of District in accordance with the 5
Courts that are in the digit Standard
territory of the Limited Classification of
Liability Company Indonesian Business
concerned. Fields ( KBLI), and the
- After the registration is last is to provide a
complete, The Registrar in checklist as proof of
charge will issue a letter approval of the statement
of notification to the regarding the truth and
notary notifying that the validity of the data
deed of establishment of entered. Together with
has been registered in the this NIB, the founder will
register book of Limited also get other registration
Liability Company. documents, such as the
- The deed of establishment Taxpayer Identification
along with the ratification Number (NPWP) of the
decree and the letter of Company, Ratification
notification by The Letter for the Use of
Registrar shall be brought Foreign Workers
to the State Printing (RPTKA), Proof of
Office to publish and Registration of BPJS
 announce the deed of Employment Participation
establishment of the and Health BPJS,
Limited Liability Notification of eligibility
Company in the State to obtain fiscal facilities,
Gazette of the Republic of and Business License
Indonesia. (Trading Business License
- Arranging business (SIUP)).
license by requesting for - After all document
Trade Business License processing is completed,
(SIUP) and Certificate of the founder must apply for
Company Registration a business permit. This
(TDP) to the Regional permit can be obtained
Office of Industry and through the submission of
Trade where the company a prerequisite permit,
is established. namely Location Permit,
- Requesting for a Business Environmental Permit,
Domicile Certificate IMB, or other business
(SKDU) to the local permit requirements (if
District Office where the required). This
LLC is established. prerequisite permit can be
- Requesting the Tax obtained by fulfilling
Identification Number certain commitments in
(NPWP) to the tax office accordance with the
selection of the type of
business with a
predetermined period of
time. But for certain
permits, some can be
obtained without fulfilling
certain commitments.
After completing the
statement of fulfillment of
all the necessary
 commitments, the founder
will obtain a business
license.
- After obtaining a business
permit, the founder must
also obtain
commercial/operating
permit.
Commercial/operating
permits can be obtained
by completing a
commitment statement to
complete an
Commercial/operating
permit within a certain
period of time in the form
of the ability to meet
standards, certificates and
/ or licenses, registration
of goods / services, and /
or customs registration
and taxation.
- After fulfilling all the
commitments and
obtaining business
licenses and commercial
permits, the business actor
must pay all business
licensing fees which are:
- Non-tax revenue;
- Import duties and / or
export duties;
- Excise; and / or
 - Local tax or regional
retribution,
- If there is failure of
payment, then the
Business Permit and
Commercial Permit
that have been given
shall be declared as
null and void.

In order to provide easiness as well as accelerating business and investment activity in

Indonesia, the government has issued Government Regulation No. 24/2018 on Electronic
Integrated Licensing Service (GR 24/2018), which is commonly known as Online Single
Submission (OSS). The new system will be the main and single reference in Indonesia for
business license applications and their issuance.
There are two types of business licenses under the government regulation : business
permits and commercial/operating permit. Applicants for these business licenses can be either
individuals or non-individuals, i.e limited liability companies, public service enterprises
(perusahaan umum), regional public services enterprises, other state-owned legal entities,
public service agencies, broadcasting agencies, co-operatives, business entities established by
foundations, firms, limited partnerships, and civil partnerships.
The mechanism is set forth in article 20-30 of the GR No. 24/2018. The business
entity must first register by accessing www.oss.com and input data in order to obtain the
Business Identification Number (NIB). Some necessary data and documents for the
registration process includes the name/validation number of establishment deed, type and
origin of investment, plan for labor use, plan for taxation and customs, civil registration
number (Nomor Induk Kependudukan/NIK) of the person in charge, as well as tax ID
number (Nomor Pokok Wajib Pajak/NPWP). The system also offers to process NPWP
through OSS for those who does not have it yet. After the registration process, the OSS
Agency will issue the NIB in the form of 13 random number digits that is secured and
accompanied by an electronic signature. The NIB will then be the business’s identity and
serve as a requirement for all business permit and commercial or operating permit
applications in the OSS system. The NIB will also apply simultaneously as the Company
Registration Certificate (Tanda Daftar Perusahaan/TDP), Importer’s Identification Number
(Angka Pengenal Importir/API), and customs access. The NIB can be revoked and declared
invalid by the OSS Agency if the business actors conduct business and/or activities that are
not in accordance with NIB; and/or declared null or invalid based on a court decision that has
permanent legal force.
The OSS system really offers to make the application and issuance of many types of
licenses more efficient, faster and easier. To get more explanation on the practice of this
integrated licensing system, our group interviewed a notary at her office, Ibu Notaris
Rismalena Kasri SH.

Formerly, for the establishment of Limited Liability Company, the business actors must first
make deed of establishment, which contains the articles of association, and other information
relating to the establishment of the Company in front of the notary as stated in the Law No.
40/2007 on Limited Liability Company. Then, the business actors must manage domicile
information and NPWP before arranging the bank account as proof of capital deposit).
However, the bank would asks for certificate and warrant from the Ministry of Law and
Human Rights, which created a question for which should be done first. After acquiring the
certificate and the bank account, then the bussiness actors could acquire the TDP. Then the
government made a new policy which is commonly known as One-Stop Service (Pelayanan
Terpadu Satu Pintu/PTSP). The said system still has a number of weaknesses, namely the
existence of permits at the central level and at the regional level.
Then, President Joko Widodo wants a simpler system like how they do it in other
countries with only one document. So the OSS system works as the development of the PTSP
system, where with one document, all permits could be obtained. But in reality, the system is
not ready and still lacks in many aspects. For example, the GR 24/2018 stated that the OSS
system could help process the NPWP. But in reality, it cant be done as simple as that and still
requires the business actors to go to tax office. So the process of acquiring domicile
information, bank account, and NPWP is still done manually by visiting the relevant
authority, which obviously takes more time and will cost more. The GR 24/2018 also
requires the business actors who hold any business license applied before GR 24/2018 came
into effect but which has not been issued to be processed through the OSS system, and
business actors which obtained their business permit and/or commercial or operating permit
before the regulation came into effect, but need a new license for a business expansion must
also comply to the new system. This requires the business actors to collect all the needed
documents from the notary and the Ministry of Law and Human Rights. However when
inputing data in the OSS system, there must be some datas missing even though everything
has been inputed. Therefore, the system does not really make the process faster or more
efficient. Regarding the cost, it is still not clear yet since none of the Limited Liability
Company have succeed obtaining a permit. Though it works well for individuals to obtain a
business permit, The process for business entity still done manually to many different
authorities (notary, BKPM, ministry of law and human rights, tax office). Hence, reportedly
the Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM)
announced the suspension of all BKPM’s licensing services as the OSS system is still being
prepared. BKPM confirmed that during the preparation period, the PTSP will be open as
usual, although it will also put every license application on hold. According to the Press
Release, the PTSP will be expected to take over the operation of the OSS system from the
CME in approximately 5 months time.
In conclusion, though the government has good intention on launching the OSS
system to ease business activy, but the application of the system is not completely ready yet.
The bureaucracy are still complex and thus the process to acquire business permit still takes
as long as before with relatively same cost.
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Notaris, Dunia. "Taukah Anda, Berapa Lama Pembuatan PT Menggunakan Jasa Notaris? -."
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