Understanding Indonesia’s New Business Licensing Rules: GR 28/2025

The Indonesian government has introduced a new regulation, i.e., Government Regulation No. 28 of 2025 ("GR 28/2025"). That updates how business licenses are issued based on risk levels. This new rule replaces the older GR 5/2021 and aims to make the licensing process more transparent, streamlined, and business-friendly for both local and international investors.

So, what does this mean for your business? Here's a breakdown of the key updates and why they matter.

Key Highlights:

1. Licensing Still Based on Risk Levels

Businesses are still grouped into four categories based on risk, each with its own licensing requirements:

Low Risk

NIB (Business ID Number) only

Medium-Low

NIB + Self-declared Standard Certificate

Medium-High

NIB + Government-verified Certificate

High Risk

NIB + Full License (Izin) from the authority

Make sure your business activity code (KBLI) is accurate, as it determines your risk category and licensing obligations.

2. All Licensing Goes Through OSS

The Online Single Submission (OSS) system is now the official and only platform for all business licensing processe, from getting permits to updating business information.

Double-check your company’s data before submitting anything. Mistakes can delay automated processing. If you’re unfamiliar with the system, it may help to train your team or get professional support.

3. Faster Approvals, Clearer Timelines

The new regulation introduces deadlines for critical approvals, making it easier for businesses to plan:

Spatial Planning (KKPR): Must be processed within 20 working days in areas without a detailed plan.
Environmental Licenses (PL): Processing times for AMDAL and UKL-UPL are now more predictable, with streamlined steps.

Just be sure your documents are complete, as missing information can still cause delays.

4. New Sectors Now Regulated

GR 28/2025 officially brings more industries under the risk-based licensing system, including:

Creative Economy: Covers businesses in design, media, content creation, and digital arts.
Electronic Systems & Transactions: Includes digital platforms, IoT services, software/game developers, AI services, blockchain, and more.

If you're in one of these sectors, it’s time to review your licensing status.

When Does It Take Effect?

Effective Date: 5 June 2025
Existing Licenses: Still valid, no need to reapply unless the new rules are more beneficial.
Ongoing Applications: Will follow the old regulation until the OSS system is fully updated.
Transition Period: All updates must be in place by October 2025, so expect gradual system changes over the next few months.

What You Should Do Next?

Here’s how your business can stay compliant and prepared:

Review Your Licenses – Especially if you're in a newly added sector.
Check Your OSS Data – Make sure your KBLI and company info are correct.
Upskill Your Team – Train your staff on OSS and the new risk framework.
Improve Internal Processes – Strengthen compliance checks and reporting procedures.

Need Help Navigating GR 28/2025?

This regulation marks a major step forward in modernizing Indonesia’s business environment but it also introduces new challenges.

Our team has analyzed the regulation in detail and is ready to provide practical, tailored advice for your business. Whether you’re a startup, SME, or large enterprise, we can help you stay ahead of the curve.

CONTACT US TODAY to learn how GR 28/2025 affects your industry and how we can support your licensing strategy moving forward.

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