Are you planning to set up a business in Indonesia? Whether you’re opening a restaurant in Bali, starting a villa rental in Sumbawa, or running a consulting firm in Jakarta, you’ll need to understand the OSS system in Indonesia.
The Online Single Submission (OSS) platform has transformed the way business permits and licenses are obtained, making the process faster, more transparent, and easier to manage. But to stay compliant, it’s important to know how the system works, what KBLI codes mean, and how zoning regulations affect your business.
The OSS system was launched by the Indonesian government in 2018. It is a centralised digital platform that allows businesses to apply for permits, track approvals, and maintain compliance—all in one place.
By reducing bureaucracy and streamlining the process, OSS helps business owners save time while ensuring transparency in licensing.
The OSS platform connects businesses to multiple government agencies, ensuring licensing is accurate and compliant. Key features include:
Every business in Indonesia is classified under a KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) code. Selecting the correct code is crucial as it determines your permitted activities and required licenses.
Tip: Choosing the wrong KBLI code can lead to compliance problems, rejected applications, or tax complications.
If you plan to invest in property or operate a villa rental business in Bali, OSS compliance must align with local zoning rules.
Remember: OSS licenses are linked to a specific address. You cannot use the same license for multiple properties without updating the system.
As of June 2025, the Regional Revenue/Tax Agency (Badan Pendapatan Daerah or “Bapenda” for short) has increased its monitoring of businesses registered in the OSS—especially villa rentals and accommodation providers.
Who’s affected? Business owners and property managers who operate rental villas or accommodation businesses.
The OSS system has made obtaining business licenses in Indonesia far more efficient. However, compliance with KBLI codes, zoning regulations, and tax obligations must be taken seriously.
At Smart Advisory Solutions, we help foreign investors and business owners navigate OSS licensing, zoning rules, and regulatory compliance. Ensure your business is properly set up from the start—so you can focus on growth.
Get in touch today to ensure your OSS compliance and set your business up for success in Indonesia.
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Understanding the OSS System in Indonesia Are you planning to set up a business in Indonesia? Whether you’re opening a restaurant in Bali, starting a villa rental in Sumbawa, or running a consulting firm in Jakarta, you’ll need to understand the OSS system in Indonesia. The Online Single Submission (OSS) platform has transformed the way […]
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