Business License Indonesia: Guide for Expats & Entrepreneurs
r123-share-title

Last updated October 28, 2025 · 4 min read · by Imam

Business license in Indonesia. Photograph: Yazid N via Unsplash

Thinking of launching or expanding in Indonesia? The most important step isn’t flashy, it’s getting your business license Indonesia (NIB) sorted out via the OSS system.

Launched to streamline everything from company ID to permits, the NIB simplifies compliance.

Let’s break it down in the smartest way possible.

What Is an NIB and Why It’s a Game-Changer

The NIB (Nomor Induk Berusaha) is not just a business registration number. It doubles as your operating permit, tax ID (NPWP), social insurance (BPJS) enrolment, and customs access card.

It’s your Swiss Army knife of business documentation in Indonesia, issued through the Online Single Submission (OSS) system.

2025 Update: GR 28 Makes It Even Smoother

Effective 5 June 2025, Government Regulation No. 28 of 2025 (GR 28/2025) replaces the 2021 version to usher in a more risk-based and streamlined licensing framework.

What’s new:

Expanded coverage: 22 sectors now included (e.g. creative economy, cooperatives).
Rollout of Service Level Agreements (SLAs) for predictable processing times.
Expanded integration of environmental and spatial approvals directly via OSS.
Centralization ensures no more confusing additional requirements from regional authorities.
Transition rules keep existing licenses valid—unless new regulation is more beneficial.

Step-by-Step: How to Get Licensed

Foto business license in Indonesia. Photograph: Bayu Syaits via Unsplash

A. Create or Upgrade Your Legal Entity

Choose from PT (local), PT PMA (foreign investment), or other structures depending on your business model.

Once in place, you’re ready for OSS.

B. Register via OSS

Submit your application with your entity documents and choose the correct KBLI code.

OSS will assign your NIB and determine if you need additional permits.

Be sure to monitor carefully. OSS updates may require you to re-confirm permissions or change contact emails.

C. Optional: Apply for Extra Permits

High or regulated sectors may need specialized approvals like certificates (standard, hygiene, halal), environmental permits, or spatial planning approvals.

D. Serve and Comply

Keep track of renewals, especially for sector-specific permits.

With GR 28, many general licenses now remain valid for the life of the business.

Timing & Cost Expectations

Step	Timeframe
NIB + Basic Permissions	Often issued within 1 day
High-Risk or Complex Permits	Several weeks
Sector-Based Extra Permits	Varies widely

The new regulation’s SLA-driven approach helps reduce uncertainty. And if OSS delay exceeds the SLA, you may receive “fiktif positif” approval.

Why Expats & Investors Should Care

Thanks to the 2025 updates:

Licensing is more transparent, faster, and centralized.
A broader range of sectors is now clearly covered.
OSS handles most of the lifecycle, from general licensing to investment incentives.
You focus more on your business and less on bureaucracy.

Looking for a place to stay in Jakarta’s CBD? The Elements Apartment offers an elegant, modern living experience right in the heart of Rasuna Epicentrum, Kuningan, one of Jakarta’s most established and well-planned neighborhoods.

References

Complete Guide to Business Registration Number in Indonesia. Asian Briefing. https://www.aseanbriefing.com/doing-business-guide/indonesia/company-establishment/business-registration-number-in-indonesia
Hakim, E., Marseille, O. J., Pardede, G., Prasetiyo, A. B., & Sidharta, K. (2025, 16 July). Indonesia’s GR 28/2025: Faster Licences, Clearer Rules for Businesses. AgiLegal. https://www.agilegal.id/perspectives/articles/30881/idkh-s-gr-282025-faster-licences-clearer-rules-for-businesses
Putra, F. E. (2025, 30 June). Regulatory Update: Indonesia Expands Risk-Based Licensing Framework. BLP. https://blp.co.id/news/2025/06/regulatory-update-indonesia-expands-risk-based-licensing-framework/
EKONID AHK Indonesien. (2025, 23 July). Risk-Based Business Licensing Regulation Reform: What’s New?. Business-Indonesia.org. https://business-indonesia.org/legal_insights/risk-based-business-licensing-regulation-reform-what-s-new
Aziz, N. M. (2025, 18 July). Regulatory Update: Indonesia Updates Rules For Risk-Based Business Licensing With New Regulation. AVYA LAW. https://www.avya.law/regulatory-update/
Understanding Indonesia’s New Business Licensing Rules: GR 28/2025. (n.d.). FNR Lawyers. https://www.fnrlawyers.id/indonesia-s-new-licensing-framework
Sabati, M., Suci, A., & Nataniel, R. (n.d.). Navigating Indonesia’s New Licensing Landscape: General Points from GR 28/2025. Armalaw. https://www.arma-law.com/news-event/newsflash/navigating-indonesias-new-licensing-landscape-general-points-from-gr-28-2025