Comparative Analysis of Online Single Submission Policy Implementation in Improving MSME Business Legality: DKI Jakarta and Bali

Abstract

Micro, small, and medium enterprises (MSMEs) contribute about 61 percent of Indonesia's gross domestic product, yet most lack formal business legality; of roughly 56 million micro enterprises, only about 15 million hold a Business Identification Number (NIB). The government provides Online Single Submission (OSS) as a single risk-based licensing channel, regulated under Government Regulation Number 28 of 2025. This study analyses OSS implementation in improving MSME legality, comparing DKI Jakarta and Bali, using a concurrent mixed-methods empirical legal design: a survey of 96 MSME actors (52 Jakarta, 44 Bali), interviews with 24 informants, and official documentation, analysed with chi-square, Welch's t-test, correlation, and regression, integrated through triangulation. NIB ownership is significantly higher in Jakarta than Bali (61.5% versus 34.1%; odds ratio 3.09). Digital literacy and government service effectiveness are both higher in Jakarta and correlate strongly with OSS use, while perceived NIB benefits do not differ among existing holders. Official records corroborate this: among thirteen urban villages with a 21.1 percent decline in NIB issuance in 2025, only the village running door-to-door assistance increased. The gap thus originates not from OSS's regulatory substance, uniform nationally, but from the intermediary layer connecting the system to its users, warranting stronger local assistance.