{
    "success": true,
    "data": {
        "id": 1569188,
        "msgid": "40-million-msmes-still-lack-business-identification-as-government-streamlines-registration-process-1771974785",
        "date": "2026-02-24 22:42:22",
        "title": "40 Million MSMEs Still Lack Business Identification as Government Streamlines Registration Process",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesia's Ministry of Investment and Downstreaming has revealed that approximately 40 million micro, small, and medium enterprises lack formal business identification (NIB), despite 15.2 million already being issued. To address this registration gap, the government has simplified the location permit process by enabling micro-enterprises to obtain approval through self-declaration with automatic system approval.",
        "content": "<p>Deputy Head of BKPM, Todotua Pasaribu. (Photo: RMOL\/Alifia)<\/p>\n<p>As many as 40 million micro, small, and medium enterprises (MSMEs)\nhave not yet obtained a Business Identification Number (NIB) as official\nlegal recognition.<\/p>\n<p>Deputy Minister of Investment and Downstreaming\/Deputy Head of BKPM,\nTodotua Pasaribu, stated that this figure represents a major challenge\nthat needs to be addressed promptly.<\/p>\n<p>Data from the Ministry of Investment and Downstreaming\/BKPM shows\nthat, to date, 15.2 million NIBs have been issued. Of this total,\napproximately 14.9 million are micro-enterprises.<\/p>\n<p>Meanwhile, the potential number of micro-enterprises in Indonesia is\nestimated to reach 56 million units. This means that there are still\nover 40 million MSMEs that have not been formally registered.<\/p>\n<p>\u201cThere is still a significant number, around 40 million, that we need\nto address so that these businesses can quickly obtain legal\nrecognition. This will also be beneficial for the country because the\ncontribution of revenue from the MSME sector will naturally increase,\u201d\nsaid Todotua at his office in Jakarta, Tuesday, 24 February 2026.<\/p>\n<p>He explained that one of the main obstacles in issuing NIBs has been\nthe requirement for a Certificate of Conformity for Land Use Activities\n(PKKPR) or a location permit. This process has been considered\ntime-consuming because it requires several technical steps.<\/p>\n<p>As a measure to accelerate the process, the government has issued a\nCircular Letter from the Minister of Investment and Downstreaming\/Head\nof BKPM Number 1 of 2026, which regulates the simplification of the\nissuance of land-based PKKPRs for micro-enterprises.<\/p>\n<p>Under the new scheme, micro-enterprises can submit a PKKPR through a\nself-declaration, which is automatically approved by the system, making\nthe NIB issuance process faster.<\/p>\n<p>\u201cIn the next three months, this circular letter will be upgraded into\na regulation. The content will stipulate that for micro-enterprise\nactivities, the PKKPR or location permit can be obtained through a\nself-declaration that is automatically approved. This will make the NIB\nissuance process faster,\u201d he explained.<\/p>\n<p>Although the procedures have been streamlined, the government has\naffirmed that the substance of land use regulations will still be\nenforced. Businesses are still required to include the coordinates and\naddress of their business through the self-declaration mechanism.<\/p>\n<p>This measure is expected to accelerate the formalization of MSMEs and\nexpand the base of officially registered businesses, thereby\nstrengthening the sector\u2019s contribution to state revenue and economic\ngrowth.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/40-million-msmes-still-lack-business-identification-as-government-streamlines-registration-process-1771974785",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}