OSS – Risk Based Approach – The Omnibus Law has regulated 11 clusters of Business Sector in Indonesia : some of them are related to our today’s topics on the newly launched OSS system known as the OSS RBA (Risk Based Approach). Those clusters are :

• Development on Investment and Business Activities Ecosystem
• Business Licensing
• Employment
• Cooperation and Small & Micro Business Support
• Research and Innovation Support
• Land Usage
• Economic Area
• Ease of Doing Business
• Central Government Investment and Acceleration of PSN
• Governmental Administration
• Imposition of Sanctions

The process of the Risk Based Approach Licensing follows the regulated provision in Omnibus Law on Article 6 and Article 7 (1) and Article 7 (7) of Law No. 11 year 2020. The development of this new system has divided the risks into 3 categories : a. low-risk business; b. middle-risk business and c. high-risk business. The implementation of this process follows the Government Regulation No. 5 of 2021.

The process of business licensing is changed into risk-based assessment with the licenses issued of each Approach, as stated :

Low-Risk : Business ID Number (NIB)

Middle-Low Risk : NIB + Standard Certificate (Self Declare)

Middle-High Risk : NIB + Standard Certificate (Self Declare + Verification)

High Risk : NIB + License (with or without Verified Standard Certification)

Source : socialization of OSS-RBA by Indonesia Investment Coordinating Board

For Low-Risk Business, the Business ID Number serves as an all-in business license for operational and commercial activities for the Business. As for the Middle-Low Risk Business, the Business ID Number must be followed by a Standard Certificate in a form of a statement letter directly declared by the business owners and will then perform as the license for operational and commercial activities.

     However, for Middle-High Risk Business, the requirements of licenses will direct business owners to acquire verification by the related government institutions before performing the operational and commercial activities. And for High Risk Business, the business owners will be required to achieve related Business License (Izin Usaha) before performing the operational and commercial activities.

The determination of Risks are provided in the list Business Classification / KBLI. Before establishing their business, business owners must first follow the determined risk of their chosen KBLI.

Other than the new implementation of OSS-RBA, the Government has also released a new business classification for investment limitation, whilst previously several sectors are limited to foreign-owned ownership, now with the Presidential Regulation 10 of 2021, a lot of sectors are open for 100% foreign-owned ownership. This regulation replaces the Presidential Regulation 44 of 2016 regarding Negative Investment List (DNI) with 350 sectors allowed for limited foreign-owned investment and 20 sectors closed for foreign-owned investment. But. The regulation of Investment Business Sector (BUPM) has only 43 sectors for limited foreign-owned investment; which would help the foreign investors to expand their chosen business activities in Indonesia.

            Following this breakthrough of a total makeover in the business licensing, the Indonesia Investment Coordinating Board (BKPM) is preparing 4 drafts of BKPM Regulation to assist the implementation of its new OSS-RBA system; those are :

1. BKPM Regulation regarding the Implementation of Electronic System of Risk Based Approach Business
2. BKPM Regulation regarding Guide and Procedures on Implementation of Risk Based Approach Business Licensing and Investment Facility
3. BKPM Regulation regarding Guide on and Procedures on Supervision of Risk Based Approach Business Licensing
4. BKPM Regulation regarding Procedures of Fulfilling Criteria and Request of Withholding Tax Facility outside of the Network in Special Economic Zone

In conclusion, it is imperative that all business owners understand the classification of risks through the their intended business activities and while the OSS-RBA system is still in development even until this day, our consultant can give you a more thorough guide on how to acquire the necessary business license for you to explore the biggest market in South-East Asia.

How can Double M help you?

DOUBLE M providing market entry solution services in South East Asia. Should you have any inquiry, please contact us at info@double-m.co

Benefits of Payroll Outsourcing in Indonesia – Payroll processing is one of the important administrative activities in the company. This activity is routinely carried out but it is time consuming and complicated. Payroll is not only about providing compensation to employees, but also related to various rules such as tax calculation, overtime and social security payments. Therefore, a proper and correct payroll system and management is needed.

To have a good payroll system and to make sure the payroll is accurate, companies usually have a specialized department and hire experienced and skilled employee in this regard. However, this will require large resources and costs.

Alternatively, companies can used payroll outsourcing services. Payroll outsourcing means to use third party organization to handle some or all of payroll administration. There are several benefits of payroll outsourcing, including:

1. Save cost

Payroll outsourcing in Indonesia can also save the company’s expenses and even help increase the company’s productivity. By using payroll outsourcing services, the company does not need to hire and train employees for payroll matters, there is no need to pay salaries and taxes for these employees, and there is no need to buy necessary tools such as an expensive accounting software.

2. Companies can focus on their core activities

Payroll work is not a core business in a production company but its role is very important for the sustainability of the company. Therefore, using payroll outsourcing services will help many companies to focus more on their core activities, such as increasing productivity, sales and expanding business.

3. Avoid any mistakes and ensure regulatory compliance

Errors and mistakes in calculating the payroll may result to fine by the tax department or any other relevant authorities due to inaccurate calculation of taxes and social security. Through payroll outsourcing, the company submits the payroll work process to a team of experienced professionals. These professionals are more familiar with the complexity of the matters related to payroll such as taxes and social security. Not only that they are usually well informed with the changes of the regulations. Because of that they are far less likely to make any mistakes when calculating and reporting the payroll than the in-house staff.  

Whether it is for newly established with limited budget, or seasoned company which want to focus only on its core activities, payroll outsourcing is one alternative to ensure a good and accurate payroll administration.

How can Double M help ?

DOUBLE M is providing market entry solution services in South East Asia including Payroll Outsourcing. Should you have any inquiry, please contact us at info@double-m.co

Bank Account in Indonesia – If you plan to stay in Indonesia at a certain time as an expatriate, or perhaps even in a long term, then it is recommended to open an Indonesian bank account. Although this is not a necessity, it will make life easier for you. By having a local bank account, you can easily manage and do all sort of financial activities such as bill payments, salary transfers and cash withdrawals.  

Local banks offer savings and checking accounts in Rupiah or a foreign currency (usually in US Dollars). In addition, banks also offer term deposits, credit cards and foreign exchange services. After checking which bank services you need, the next step is to open a bank account. Before applying for a local bank account, it is advised that you should check what documents are needed. You can check this by visiting the bank website or the branch directly. However, these are some of the documents you likely need:

1. Valid passport
2. Temporary resident permit (KITAS)
3. Proof of address in Indonesia
4. Residency contacts
5. Domicile letter
6. If you have work-related KITAS, a recommendation letter from your employer and your employer’s NPWP (tax identification number).
7. Your NPWP (tax identification number).

Choosing the Right Bank

Based on the banking statistics of the Financial Services Authority, in 2021 there are 107 commercial banks operating in Indonesia. With that number of banks, it is certainly difficult to choose the most suitable. Therefore, to make it easier for you, here we provide 3 bank recommendations for expatriates.

1. OCBC NISP

This is one of the oldest banks in Indonesia and is currently owned by OCBC Singapore. OCBC NISP offers a multi-currency account, Tanda 360 Plus. Tanda 360 Plus can manage 12 currencies in one account. The 12 currencies are the following.

1. Rupiah (IDR),
2. US Dollar (USD)
3. Singaporean Dollar (SGD)
4. Japanese Yen (JPY)
5. Euro (EUR)
6. Australian Dollar (AUD)
7. Pound Sterling (GBP)
8. Hong Kong Dollar (HKD)
9. Switzerland Swiss (CHF)
10. Canadian Dollar (CAD)
11. New Zealand Dollar (NZD)
12. Chinese Offshore Yuan (CNH).

2. CIMB Niaga

This bank is a joint venture between CIMB Group Malaysia and Bank Niaga. CIMB Niaga has a wide network and presence in ASEAN countries such as Malaysia, Singapore, Thailand, Cambodia, Philippines, Brunei, Laos, and Myanmar. If you are an expatriate who often travels around South East Asia, this will facilitate your financial activities.

3. Bank Mandiri

Mandiri is currently the state-owned bank with the largest assets. The advantage of using Mandiri is their huge network of offices and the terms and conditions for inter-bank transfers, both domestic and overseas, are easier than other banks.

How can DOUBLE M help you?

Double M is providing market entry solution services in South-East Asia. Should you have any inquiries, please contact us at info@double-m.co

Passport and Address Changes in Indonesia – For administrative control of the presence and activities of foreigners in Indonesia territory, the Indonesia Government stipulates a policy that every foreigner residing in Indonesia is required to report any data changes in civil status (birth, marriage, divorce, and death), citizenship, occupation, guarantor or change of address and passport as regulated in article 71 (a) of Law No.6/2011 concerning Immigration.

This reporting is not only important for the supervision but changes in employment or guarantor also greatly affect the immigration status (residence permit) of foreigners who are and carry out activities in Indonesian territory. Notify or report your local immigration office when the changes happen.

Below are the most data changes that often happens and sometimes forgotten:

Passport

If you are a KITAS/KITAP holder and you have to change your passport due to passport loss or damage or you have no more empty pages left, you have to notify your sponsor to update your KITAS data with the new passport. This is to avoid the problem when you leave or enter Indonesia or having a problem when you submit any company license (in the case you are the Director in the company). The data on your KITAS has to be in-line with your new passport data.

Address

It often happens that foreigners on KITAS/KITAP move to a different house or apartment before their KITAS/KITAP expires. It is important to notify the immigration office about this move.

The changes report procedure is likely to be quite time-consuming and frustrating with the tendency of regulations changing from time to time. To avoid these headaches and save your time with the paperwork, Double M team will assist you with the process. Should you have any inquiries or require more information, please contact info@double-m.co.

Register a Trademark in Indonesia to secure exclusive rights to your brand, protect it from unauthorized use, and enhance your business’s credibility in the market. Trademark registration is governed by Law Number 20 of 2016 on Trademarks and Geographical Indications and is managed by the Directorate General of Intellectual Property (DGIP) under the Ministry of Law and Human Rights.

Since Indonesia joined the Madrid Protocol on October 2, 2017, businesses can now register a trademark in Indonesia and extend protection internationally with a single application.

Why Register a Trademark in Indonesia?

There are several advantages to registering a trademark in Indonesia:

• Exclusive Rights: Trademark registration grants legal ownership and protection for your brand, ensuring that competitors cannot use a similar mark for the same goods or services.
• Brand Recognition: A registered trademark enhances credibility and increases brand value, making it easier to build trust with customers.
• First-to-File Principle: Indonesia follows the first-to-file rule, meaning that the first entity to register a trademark gets exclusive rights, regardless of prior use.
• International Expansion: Through the Madrid Protocol, businesses can protect their trademark in multiple countries with a single application.

How to Register a Trademark in Indonesia

1. Conduct a Trademark Search

Before applying, it is highly recommended to search the DGIP’s online database to ensure that no identical or similar trademark has already been registered. This step can help avoid potential rejection.

2. Prepare the Required Documents

To register a trademark in Indonesia, you must submit:

• A clear representation of the trademark (logo, wordmark, or symbol).
• A detailed list of goods and services categorized under the International Nice Classification.
• Applicant’s details (name, nationality, and address).
• A power of attorney if applying through a legal representative.
• Proof of payment for the government trademark application fee.

3. Submit the Trademark Application

You can register a trademark in Indonesia through the DGIP online system or by filing manually at their office. Ensuring accuracy in the submitted documents is crucial to prevent processing delays.

4. Formality Examination (Up to 15 Days)

DGIP will conduct an administrative check to confirm that the application is complete. If there are missing or incorrect details, the applicant will be given time to make corrections.

5. Substantive Examination (Up to 9 Months)

During this phase, DGIP will review the trademark to ensure:

• It is unique and not misleading.
• It does not conflict with existing registered trademarks.
• It matches the correct classification of goods/services.

6. Publication for Opposition (2 Months)

If the application passes the examination, the trademark will be published in the Official Trademark Gazette for two months. During this period, third parties can file objections if they believe the trademark infringes on their rights. If an opposition is filed, DGIP will conduct a review and decide on the validity of the claim.

7. Issuance of Trademark Registration Certificate

If no valid opposition is raised, DGIP will register the trademark in Indonesia and issue a Trademark Registration Certificate. The registration is valid for 10 years and can be renewed indefinitely every 10 years.

Common Reasons for Trademark Rejection

When you register a trademark in Indonesia, the application may be rejected due to:

• Violation of Morality or Public Order: If the trademark contains offensive language or inappropriate elements.
• Similarity to Existing Trademarks: If the proposed trademark is too similar to an already registered one.
• Incorrect Classification: If the goods or services are misclassified under the International Nice Classification.
• Use of Famous Names: If the trademark resembles a well-known person’s name or another legal entity without permission.

Why Choose Double M to Register a Trademark in Indonesia?

Registering a trademark in Indonesia can be a complex process, especially for foreign businesses unfamiliar with local regulations. Double M specializes in market entry solutions, offering comprehensive assistance for businesses looking for trademark registration in Indonesia.

From conducting trademark searches and filing applications to handling objections and renewals, Double M ensures a smooth and hassle-free trademark registration process.

Project Outline

La Liga is the Spanish professional football league, which is among the most prestigious football leagues in the world as the Premier League or Bundesliga.

We have been working with La Liga and their Country Manager since several years by supporting them with working permits for their staff in Indonesia. Recently, we have started to provide them legal support as they are preparing to run a Youth Football League in Indonesia.

Testimonial

“From La Liga in Indonesia, we have worked and collaborated on various official projects and procedures with Double M. The result has always been the same: professionalism, speed and excellent execution. At Double M they are always available and ready to help without obligation. It is convenient to have close partners with such extensive knowledge of the local market”.

Rodrigo Gallego Abad – Indonesia Delegate     

Project Outline

NES Global Talent is the largest provider of workforce in oil & gas sector, with more than 60 offices in the 5 continents

NES Global Talent is a British Company, specialized in HR Consultancy and outsourcing for the Oil and Gas Industry. They are the world leader on their Industry, having offices in 33 countries. 

In Indonesia, Double M provides them with payroll services, HR consultation and Tax support (specially in Income tax, foreign income, BPJS, etc). 

Testimonial

“When I joined NES Global Talent in Indonesia we were already working with a regional vendor to advise on local payroll and tax matters. We were however in search of a more efficient payroll process, without compromising on compliance. Subsequently, we changed to DoubleM who introduced us to a completely new process which is much more sophisticated. In addition, DoubleM supports us on the rare occasions that there is a client query related to payroll or labor law, by allowing their specialists to join the meetings with our consultants.”

Henrique Castro – Indonesia Country Manager

Project Outline

Coren Group is the largest livestock integrator and food processor in Spain. Spain has been the first country in the EU and the fourth in the world to be approved by Indonesian authorities for the export of beef. This is the result of Double M’s work with their network and political contacts.

Novafrigsa and Artesanos Gallegos as well as the Slaughterhouse Artesanos Gallegos de la Carne have obtained halal certification by the halal official entity in Indonesia, as well as their slaughterhouses have been approved to export to Indonesia.

After these approvals, Double M has been leading the sales initiatives in Indonesia since 2016 for both slaughterhouses. The results are 3000 tons of meat sales for 2019, and 5000 tons are expected in 2020.

With the success in the sales aspect, Grupo Coren decided to establish a subsidiary in Indonesia in partnership with Double M. Coren group has trusted Double M to manage the subsidiary, handling all administration (accounting, tax, HR, legal, etc), sales, and operations. Currently, the company is running successfully and is one of the ten biggest meat importers and distributors in Indonesia.

Testimonial

“Our experience with Double M has been unbeatable, both for its professionalism and for its human quality. Their knowledge of the Indonesian market is not reduced to a mere description of statistical data but, has shown that they are perfectly integrated into Indonesian culture knowing in detail their way of thinking and doing business. The dedication they have shown to understand some complex businesses in which they did not have much experience initially has made them specialists in our sector, with good contacts both in the administration of the country and with the other local operators. In summary, for a Spanish company it is lucky to be able to count on Double M, a trustworthy consulting firm specialized in a country as different from ours as Indonesia “

Dino Grobas – President Director of Novafrifgsa S.A.

Project Outline

Keralty health is a company which belongs to Sanitas Group, a healthcare and insurance conglomerate with Headquarters in Colombia. They are a Worldwide leader in the healthcare and insurance companies.  

In this case, Double M has assisted Keralty by stablishing their representative office in Indonesia (KP3A), and the we have run all their local administrative affairs (Accounting, tax and payrolls). 

Joaquin, the country manager from Sanitas, has the following opinion about how is working with PT DMG Investment Services

Testimonial

“Double M has successfully assisted us during the process of establishing the Representative Office of Keralty in Indonesia as well as other kinds of services such as tax compliance, payroll calculation and accounting reporting, so it’s being a valuable resource for our project.”  

Joaquin Colunga – Country Manager Indonesia

Project Outline

IVACE is a Public owned company which belongs to the Government of Valencia. This entity supports the companies of the region of Valencia to Export around the world.

Testimonial

“We have been their official consultant (Antena as they call us) for Indonesia since 2016, and we have won their tender (can only work with them through tenders) three times in a row for Indonesia. From late 2019 we are also their official consultants / partners in Vietnam. 

With this client we mainly provide commercial services, such as meeting arrangements, search of potential clients and partners, arrange trade missions for them every year, inverse trade missions, seminars online and presential, etc.  We have worked with around 100 companies from the Valencia region since 2016 for Vietnam and Indonesia.”

Begoña Sanchez  – internationalization Technician