A Business Identification Number or Nomor Induk Berusaha (NIB) is a number required to start a business in Indonesia. NIB is issued by the OSS system managed by the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) after businesses have completed their application through the OSS (Online Single Submission) system. The process of issuing an NIB is regulated under the Government Regulation No. 24 of 2018 concerning Electronically Integrated Business Licensing Services.
To obtain an NIB, businesses must first complete their registration by filling in all the required information. Once completed, a thirteen-digit random number that is secured and accompanied by an electronic signature will be given. The NIB is very useful as it has many functions that are needed by a business. So, what are the functions and how can you obtain an NIB?
Main Functions of an NIB
The main function of an NIB is to act as identification for businesses, both individual and non-individual. Businesses can apply for a Business License and a Commercial or Operational Permit once they have an NIB. Aside from that, the NIB has several other functions. It can function as a Company Registration Certificate (TDP), Importer Identification Number (API), and customs access rights. Obtaining an NIB also guarantees registration as a participant in health social security and employment social security.
How to Apply for an NIB
Obtaining an NIB is very simple. It can be completed in four easy steps. The first step is to go to www.oss.go.id, then click create an account. After that, there will be two options that can be chosen. The first option is Micro and Small Enterprises, and the second one is Non-Micro and Small Enterprises. Choose accordingly.
Applicants will then be directed to complete the registration to get access to the OSS. The information1 that will be needed is your Identification Number (NIK) for individual business owners. For non-individual business owners, you need to provide the number of ratification of the deed of establishment as well as the legal basis for the formation of a company.
After obtaining access to the OSS, businesses must input their name, Identification Number, address, type of investment and country of origin (for non-individual business owners), business field, location of investment, amount of investment plan, planned request for fiscal facilities and/or other facilities, contact number, and NPWP. If you don’t yet have an NPWP, the OSS will facilitate getting an NPWP.
Once all the required information has been completed and the propriety has obtained an NPWP, the OSS Institution will issue the NIB.
Business License in Indonesia
After completing the process of getting an NIB, businesses can proceed to the next step, which is to get business licenses. Business licenses in Indonesia are consist of a Business License and a Commercial or Operational License.
Businesses that have obtained an NIB must have a Business License. To get a Business License, businesses must meet the requirements for Location Permits, Water Location Permits, Environmental Permits, and Building Permits in their business areas. It is also required to update the business’s development information to the OSS system.
Commercial or Operational Licenses are granted to businesses to meet the standards, certificates, licenses, and/or registration of goods/services according to the type of product being commercialized through the OSS system. This license is only valid after the businesses has fulfilled the commitments and paid the business licensing fees that have been stipulated by law.
Fulfillment of Commitments
Business License and Commercial or Operational License can be canceled if the businesses does not complete the fulfillment of commitments for Location Permits (ten days), Water Location Permits (ten days), Environmental Permits (ten days for UKL-UPL and thirty days for AMDAL), or Building Permits (thirty days).
Explained above are the steps of how to obtain an NIB. If the businesses already has a Business License and a Commercial or Operational License but doesn’t yet have an NIB, you are still obligated to register your business through the OSS system to get it. Be sure to fill in the required information and/or fulfill the commitment. The Business License and a Commercial or Operational License will still be in effect after getting the NIB.