Nov

28

Requirements Under the OSS System For Indonesia’s Tourism Sector

Sunglasses—check. Beach gear—check. Leave the work laptop behind—check. There’s no question Indonesia continues to attract beachlovers and adventure-seekers from across the globe. The impact of and dependency on tourism cannot be overstated in many areas of Indonesia’s archipelago. In fact, tourism continues to be one of the most flourishing industries with new companies seeking to capitalize.

The Indonesian Government launched new licensing procedure system in the middle of 2018: the Government Regulation No. 24 of 2018 concerning Integrated Business Licensing E-Service (the “OSS Regulation”). The new system is commonly called the Online Single Submission (the “OSS”) system. The government is trying to implement a one-stop-shop policy for business licensing. Under the OSS system, all business licenses shall be issued through this OSS system. However, referring to Article 41 of the OSS Regulation, Business License and/or Commercial License or Operational License shall be effectively valid if the businessmen or business actors fulfill the Commitment (the capital sum pledged to be invested and other specific requirements under prevailing regulations to be satisfied) and fully pay the business licensing fees in accordance with the prevailing law and regulations (if any).

As the consequence, many ministries and agencies are issuing implementation regulations to ensure the legal certainty for business actors investing in Indonesia. Of course, we aim to focus on the Ministry of Tourism here.

In response to the OSS Regulation, the Ministry of Tourism issued the Minister of Tourism Regulation No. 10 of 2018 concerning Integrated Business Licensing E-Service in the Tourism Sector (“Tourism OSS Regulation”). Based on Tourism OSS Regulation, a tourism business consists of these following business fields:

  1. Tourist attraction;
  2. Tourism area;
  3. Tourist transportation services;
  4. Travel services;
  5. Food and beverage services;
  6. Provision and accommodation;
  7. Organizing entertainment and recreational activities;
  8. Organizing meetings, incentive trips,
  9. Conference and exhibition;
  10. Tourism information services;
  11. Tourism consulting services;
  12. Guide services;
  13. Water tourism; and
  14. Spa.

The Tourism OSS Regulation stipulates required tourism business licenses as follows:

  1. Business License, in the form of Tourism Business Registration License or Tanda Daftar Usaha Pariwisata (TDUP); and
  2. Commercial or Operational License, in the form of Tourism Business Certificate or Sertifikat Usaha Pariwisata.

The TDUP mentioned above is issued via OSS based on the Commitment. Therefore, to make the TDUP effectively valid, business actors must fulfill the Commitment of the TDUP as follows:

  1. Location License;
  2. Environmental License;
  3. Building Permit or Izin Mendirikan Bangunan (“IMB”) or office lease agreement, if the business actors rent an office for their business; and
  4. Water Location Permit and Water Management Permit regulated by the minister in charge of government affairs in the field of maritime (specific requirement for tourism businesses that use the sea permanently).

After the issuance TDUP via OSS, the businesses (which have obtained Tourism Business Standard and Tourism Business Certification Institution) must acquire the Tourism Business Certificate (“TBC”) within a specific time period based on the size of their business category. Large businesses must obtain the TBC within 2 (two) years; medium sized businesses within 4 (four) years; and small/micro businesses within 6 (six) years.

There no doubt that the OSS System has made impressive improvements toward making the process of forming a tourism company more transparent and efficient. For information on how SLF can further assist you to best comply with the ins and outs involved with your new tourism business,please contact us.
Legal requirements—check.

Written by Juliani Hanly, S.H.

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.