Understanding the Standard Certificate (Sertifikat Standar)
in Business Licensing

standard certificate

Cited from ANTARAnews.com (13/3), Directorate General of Civil Aviation of the Indonesian Ministry of Transportation (Direktorat Jendral Perhubungan Udara Kementerian Perhubungan) recently announced that it has not yet received an operational license application from Indonesia Airlines, a new airline expected to enter the Indonesian aviation industry​. This highlights the crucial role of regulatory compliance and licensing for businesses, particularly in sectors with stringent oversight, such as aviation.

One of the key regulatory requirements is the Standard Certificate for Scheduled Commercial Air Transport (Sertifikat Standar Angkutan Udara Niaga Berjadwal), as mandated by Minister of Transportation Regulation No. PM 35 of 2021​. This regulation ensures that every airline must obtain a standard certificate before commencing scheduled commercial flights.

Beyond aviation, many other businesses across different industries must comply with risk-based licensing requirements under Indonesia’s Online Single Submission (OSS) system. One such critical requirement is the Standard Certificate, which applies to businesses operating in medium and high-risk categories.

What is Standard Certificate?

The Standard Certificate is a government-issued document that serves as legal assurance for business operators, confirming that their enterprise complies with the required industry standards. It is obtained through the Online Single Submission (OSS) system and is a crucial requirement for businesses categorized under specific risk levels. As part of Indonesia’s risk-based licensing system, regulated by Government Regulation No. 5 of 2021, this certificate ensures that businesses meet operational standards before they can legally operate.

Business Risk Categorization and Licensing Requirements

Under the risk-based licensing framework based, businesses are categorized into three primary risk levels:

  1. Low-Risk Businesses – Require only a Business Identification Number (Nomor Induk Berusaha or NIB).
  2. Medium-Risk Businesses
    • Medium-Low Risk – Require an NIB and standard certificate.
    • Medium-High Risk – Require an NIB and a standard certificate, which must be verified by the relevant authorities.
  3. High-Risk Businesses – Require an NIB and specific permits issued by government institutions.

Regulatory Compliance and Enforcement

Based on Government Regulation Number 5 of 2021, if a business fails to obtain a Standard Certificate (Sertifikat Standar), the consequences depend on the risk level of the business:

  1. For Medium-Low and Medium-High Risk Businesses:
    • If the business does not get the verified standards, the Online Single Submission (OSS) system will cancel the Standard Certificate.
  2. For High-Risk Businesses (Risiko Tinggi):
    • Before starting operations, businesses must meet the licensing requirements, including obtaining the Standard Certificate for certain business activities.
    • If the business fails to obtain the certificate and does not take corrective action within one year, the OSS system will revoke the business license.
  3. For Businesses in Specific Sectors:

Certain industries, such as veterinary services, pharmaceuticals, and food production, will face additional administrative sanctions like written warnings, fines, and even license revocation if they fail to comply.

The Process of Obtaining a Standard Certificate

The application process for a standard certificate is conducted through the OSS system and involves the following steps:

  1. Business Registration: Entrepreneurs must first register their business through the OSS system.
  2. Declaration of Compliance: Business owners must declare their willingness to comply with operational standards relevant to their industry.
  3. Submission of Additional Documentation:
    • For businesses requiring environmental assessments, forms such as Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL) or Environmental Management Statement (SPPL) must be completed.
  4. Verification Process:
    • For medium-low risk businesses, the standard certificate is issued upon submission of a compliance declaration alongside Business Information Number (NIB).
    • For medium-high risk businesses, the standard certificate must undergo verification by central or regional government authorities before becoming valid.

Let Us Help You Getting the Standard Certificate

The introduction of the Standard certificate in Indonesia’s business licensing framework represents a significant step toward enhancing compliance and operational efficiency. For entrepreneurs, understanding and obtaining the correct certification is vital for legally operating within the country. By leveraging the OSS system, businesses can streamline their licensing process and ensure compliance with government regulations.

For further assistance in obtaining your Standard certificate, consult a business licensing expert or visit the OSS website to start your application process today.

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