Navigating Indonesia's New Business Licensing
An interactive guide to Government Regulation (PP) No. 28 of 2025, which fundamentally reforms the risk-based business licensing system to enhance legal certainty and streamline investment.
Key Reforms at a Glance
PP 28/2025 introduces significant improvements over its predecessor, PP 5/2021. The core objective is to create a more predictable, efficient, and investor-friendly regulatory environment through several key architectural changes.
Unified OSS System
Mandates the Online Single Submission (OSS) as the sole, integrated gateway for all licensing, including previously separate environmental and building approvals.
Binding Timelines (SLA)
Codifies binding Service Level Agreements (SLAs), forcing government agencies to act within specific timeframes or face automatic approval consequences.
Expanded 'Deemed Approval'
Broadly applies the *fiktif positif* (deemed approval) principle. If the government is silent past the deadline, the license is legally granted.
Robust Supervision
Shifts focus from front-end gatekeeping to a robust, data-driven post-licensing supervision and sanctioning regime based on compliance profiles.
The Four Tiers of Risk-Based Licensing
The regulation classifies every business activity into one of four risk levels, each with a distinct and progressively stringent licensing requirement. Click on a risk level to understand its specific process and required permits.
The Business Lifecycle Explained
PP 28/2025 provides a clear, phased roadmap for businesses, from initial legal establishment to full commercial operation. This structured approach helps align legal requirements with project development timelines.
Corporate Establishment
Pre-OSS: Name reservation, Deed of Establishment, and MOLHR legalization.
Basic Requirements
OSS System: Secure NIB, KKPR (spatial), and PL (environmental).
Preparation Stage
Legally permitted activities like land acquisition and construction.
Verification (If needed)
Gov't verification for Medium-High and High-Risk businesses.
Commercial Operation
Full license is effective; production, sales, and distribution can begin.
Click on a step in the timeline to see more details here.
Expanded Sectoral Coverage
PP 28/2025 now covers 22 sectors, including new additions. Use the filters to explore the sectors regulated under this framework.
PP 28/2025 vs. PP 5/2021
This chart visualizes the key procedural and structural upgrades introduced in the new regulation, highlighting the shift towards greater efficiency and legal certainty for businesses.