CASE STUDY: Obtaining Industrial Business License for Textile Company

Written by Diah Pratiwi and Samuel S. K. A. on 5/7/2024

The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

A Singaporean textile manufacturer sought to establish a new subsidiary in Indonesia. The entity required assistance from Putranto Alliance to navigate the complex licensing requirements of the Indonesian Industrial Information System (SIINAS). The company successfully obtained the standard certificate (Sertifikat Standar) for its multiple industrial business activities.

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Situation

A Singaporean textile manufacturer specializing in footwear fabric processes for leading global brands established a new subsidiary entity in Indonesia.

The company established in Indonesia operates under multiple activities in the Industrial Business Classification Codes (Klasifikasi Baku Lapangan Usaha Indonesia / KBLI). It operates within an existing bonded zone in West Java, Indonesia.

Complication

The Ministry of Industry mandates that industries operating under Industrial Business Classification Codes (Industrial KBLI) must obtain a standard certificate. This certificate can be acquired by submitting an application to the National Industrial Information System (Sistem Informasi Industri Nasional / SIINAS) and Online Single Submission (OSS) system. 

The certificate serves as proof that the industry is fully authorized to operate in Indonesia. This requirement is stipulated in the Ministry of Industry Regulation Number 9 Year 2021 concerning Business Activity and/or Product Standards in the Implementation of Risk-Based Business Licensing in the Industry Sector.

The company required expert assistance to navigate the complex licensing requirements of SIINAS and ensure compliance with Indonesian regulations.

To address these needs, Putranto Alliance provided crucial support in obtaining the necessary licenses for the company.

Question

The company inquired about the process for obtaining the standard certificate. Specifically, they needed an explanation for the application process involving the Indonesian regulatory systems, SIINAS and OSS.

Answer

Putranto Alliance acted as a liaison between the representative of the company and the Indonesian regulatory bodies, ensuring all application requirements were met.

The process of obtaining the industrial business license is as follows:

Industrial Business License Case Study Issue Tree

Application for Operational Business Activity

Initial assistance began with identifying the business activities of the company. Most of the activities are in textile industrial manufacturing and trading categories.

The process for submitting each identified business activity permit was handled efficiently in parallel within SIINAS.

Documentation

The next step of the assistance involved guiding the company in submitting the required documents to the system. 

During this process, regulatory updates may introduce new requirements. Putranto Alliance proactively prepared the necessary additional documents before advancing to the next verification stage. 

Furthermore, Putranto Alliance provided essential revisions to ensure all requirements were accepted by the system.

Technical Verification

Upon completing the technical verification stage by the Ministry of Industry, the company will receive a verification letter to be submitted to OSS for acquiring the standard certificate, marking the final step in obtaining the industrial business license.

The standard certificate obtained from OSS serves as an official document that confirms the company has received its business license and is authorized to operate fully in Indonesia.

With the expertise of Putranto Alliance, the company successfully commenced its operations in Indonesia. The company continues to trust Putranto Alliance for their compliance and corporate actions needs

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