The Types of Risk Levels in OSS RBA
Indonesia’s business licensing system has changed significantly in recent years. Through the Online Single Submission Risk-Based Approach, commonly known as OSS RBA, the government now classifies businesses based on their level of risk. Instead of treating all businesses the same, this system adjusts licensing requirements according to how much risk an activity may pose to public health, safety, the environment, and resource use.
Understanding the types of risk levels in OSS RBA is essential for anyone planning to start or expand a business in Indonesia. The risk category determines what permits are required and how complex the process will be.
Low-Risk Business Activities
Low-risk businesses are those that have minimal potential to harm the environment, public health, or safety. These activities are generally simple in nature and do not involve hazardous materials or large-scale operations. Examples may include small retail shops, simple trading activities, or certain types of consulting services.
For low-risk activities, the licensing process is straightforward. Business owners only need to obtain a Business Identification Number, known as NIB. The NIB serves as proof of business registration and also functions as an import identification number and customs access when applicable. Once the NIB is issued, the business can operate without additional operational permits, provided it complies with general regulations.
Medium-Low Risk Business Activities
Medium-low risk businesses carry slightly more potential impact than low-risk ones. These activities may involve more structured operations, moderate workforce sizes, or limited environmental impact. Examples can include certain light manufacturing processes or food and beverage outlets with basic processing.
In this category, business owners must obtain an NIB and a Standard Certificate. The certificate is usually based on self-declaration, meaning the business owner confirms compliance with required standards. The government may conduct supervision or audits after the business starts operating to ensure compliance.
Medium-High Risk Business Activities
Medium-high risk businesses have a greater potential to affect health, safety, or the environment. These activities often involve more complex processes, specialized equipment, or stricter industry standards. Examples might include larger food production facilities, medical clinics, or construction services.
For medium-high risk activities, businesses must secure an NIB and a verified Standard Certificate. Unlike the self-declared certificate in the medium-low category, this certificate requires verification by the relevant authority before the business can fully operate. Inspections or document reviews are typically conducted to confirm compliance with technical standards.
High-Risk Business Activities
High-risk businesses pose significant potential harm to public health, safety, the environment, or natural resources. These activities are usually large-scale, involve hazardous materials, or require strict regulatory oversight. Examples include mining operations, oil and gas activities, large hospitals, and heavy chemical industries.
Businesses in this category must obtain an NIB and a specific Business License. The licensing process is more rigorous and may involve environmental impact assessments, feasibility studies, and multiple layers of approval from government authorities. Operations cannot begin until all required permits are granted.
Conclusion
The OSS RBA system reflects a more practical and structured approach to business licensing in Indonesia. By dividing businesses into low, medium-low, medium-high, and high-risk categories, the government aligns regulatory requirements with actual potential impact. For entrepreneurs, understanding these risk levels is not just about compliance. It helps in planning timelines, budgeting for permits, and preparing the right documentation from the start. A clear grasp of your business risk level can save time, reduce administrative issues, and set a strong foundation for long-term operations.
