Government Tests Issuing Business Permit over Cellphone

TheIndonesia.id - The Investment Ministry has conducted a trial for issuing business licenses over cellular phones using the Online Single Submission (OSS) application, Minister Bahlil Lahadalia has said.

Now, individual micro, small, and medium enterprises (MSMEs) can manage their business licenses via mobile phones, he stated during the 'Issuance and Distribution of Business Identification Numbers for Individual Micro and Small Enterprises' event in Bandung, West Java, on Monday, December 13, 2021.

"Today, at the same time, we are trying to issue OSS permits via cellphones. This is the first time in Indonesia, permits' issuance via cellphone. Use an electronic ID card. Just use an electronic ID card, with that you can apply for an individual permit via cellphone, anywhere as long as there is a signal, all ladies and gentlemen can manage permits without paying," Lahadalia said in his speech, which was broadcast on OSS Indonesia's Youtube channel on Monday.

He said the OSS application was created with the help of a private Internet provider company. He deemed business licensing via mobile phones as a breakthrough that would encourage MSMEs to become formal business units.

"Because 50 percent of MSMEs have yet to be formal (licensed), we encourage them to be formal," he stated.

By becoming a formal business unit with legality, MSMEs can easily request capital assistance, thereby allowing their businesses to grow or develop, he added.

Recalling his experiences as an entrepreneur, he said he faced many difficulties in obtaining permits.

"I am an MSME alumnus. I once had a turnover of Rp60 million. When I started as an entrepreneur, I once stood in line in front of the head of the district office to process permits for days. I once paid for permits which were (actually) absurd for me to pay. And now that I am a minister, I do not wish for my bitter experience to be felt by all of you," the minister said.

He then cited some instances where he found the approval of the stamp holder and the regional head equally difficult to get. "It was so difficult for us to get permits, it was nigh on impossible. Now, we have ratified the Job Creation Law. Everything must be based on OSS. For MSEs, no need to pay for anything. Just go for it!" the minister remarked.

He said he does not wish for MSMEs to pay the same amount for both business and permit retrieval. The risk-based OSS was launched to address the permit issue, he pointed out. Since its launch on August 9, 2021, as many as 430 thousand business identification numbers have been issued, he informed.

"From this figure, as many as 98 percent are MSMEs, individuals, and West Java is the highest in all of Indonesia," Lahadalia revealed.