BKPM Issues Updated Guidelines for Risk-Based Business Licensing (OSS-RBA) and Foreign Direct Investment (PT PMA)

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.