The government has reaffirmed its commitment to creating a healthy,\ncompetitive, and inclusive business climate through the issuance of\nGovernment Regulation (PP) Number 28 of 2025 on the Implementation of\nRisk-Based Business Licensing. This regulation serves as a refinement of\nthe previous policy, replacing PP Number 5 of 2021, whilst reinforcing\nthe government\u2019s concrete steps to simplify the business licensing\nprocess in Indonesia.<\/p>\n
The government has emphasised that PP 28\/2025 will serve as the sole\nlegal reference (single reference) for the issuance of risk-based\nbusiness licences. No additional requirements or permits from\nministries, agencies, regional governments, or zone administrators\nbeyond those stipulated in the regulation will be permitted.<\/p>\n
The primary objective of PP 28 of 2025 is to create business\ncertainty and policy alignment between central and regional governments,\nthereby making Indonesia\u2019s investment climate more competitive. Through\na risk-based approach, business operators are only required to fulfil\nrequirements proportional to the risk level of their business\nactivities.<\/p>\n
The new regulation brings welcome relief for business operators,\nparticularly Micro, Small, and Medium Enterprises (MSMEs) who have long\nbeen hampered by complex and slow bureaucracy. Through the risk-based\napproach, the government aims to simplify procedures and accelerate\nlicensing processing times, whilst ensuring that high-risk sectors\nremain under strict supervision.<\/p>\n
Secretary of the Coordinating Ministry for Economic Affairs,\nSusiwijono Moegiarso, stated that the issuance of PP Number 28 of 2025\ndemonstrates the government\u2019s commitment to continuously building a\nbusiness licensing ecosystem that supports investment growth. Through\nstrengthened regulations and an integrated system, the regulation is\nexpected to simplify processes, accelerate services, and provide clarity\nand certainty for all business operators.<\/p>\n
There are three key points that significantly differentiate PP\n28\/2025 from previous regulations. These three points are directly\nrelated to procedural simplification, service time certainty, and\nnational digital system integration.<\/p>\n
First, the certainty of Service Level Agreements (SLA) in the\nbusiness licensing issuance process. This establishes deadlines at every\nstage of business licence issuance, from registration and document\nverification through to licence issuance.<\/p>\n
Second, the implementation of a fictitious-positive policy, applied\ngradually in the risk-based business licensing process. If a response\nexceeds the service deadline (SLA), the system will automatically\nadvance the process to the next stage.<\/p>\n
Third, the government has given special attention to Micro and Small\nEnterprises (UMK) through simplified processes based on self-declaration\nvia the Online Single Submission (OSS) system. The OSS system has been\nenhanced with three new subsystems: the Basic Requirements subsystem,\nthe Business Facilities subsystem, and the Partnership subsystem.<\/p>\n
Similarly, Secretary of the Ministry of Investment and Downstream\nIndustries\/Principal Secretary of BKPM, Heldy Satrya Putera, stated that\nPP 28\/2025 will be implemented gradually and cautiously, particularly\nfor technical permits requiring field measurements. Technical matters\nare said to still require time and depend on location.<\/p>\n
The government is now implementing an SLA system to ensure measurable\nand monitorable service durations.<\/p>\n
Meanwhile, Deputy for Investment Climate Development at the Ministry\nof Investment and Downstream Industries\/BKPM, Riyatno, stated that PP\n28\/2025 will come into full effect on 5 October 2025. At least 61\nministerial and agency head regulations, as well as one presidential\nregulation, must be issued within the coming month. The government is\ncurrently in a four-month transition period as the OSS-RBA system needs\nto be adjusted to comply with PP 28\/2025. Additionally, each ministry\nand agency must issue their respective ministerial regulations as\nderivative rules of PP 28\/2025.<\/p>\n
The success of PP 28\/2025 cannot rely solely on the government.\nSupport is needed from all stakeholders, from the business community,\nacademics, MSME support institutions, to civil society. The business\ncommunity needs to actively provide input, optimally utilise existing\nsystems, and maintain integrity in conducting their business. Support\ninstitutions and professional associations can also play a role in\neducating business operators, particularly MSMEs, so they can understand\nand take advantage of the facilities provided through this\nregulation.<\/p>\n
Civil society, including the media, plays an important role in\nexercising social oversight of the regulation\u2019s implementation to ensure\nit remains accountable and is not misused.<\/p>\n
Government Regulation Number 28 of 2025 represents a step forward in\nbureaucratic reform of business licensing in Indonesia. Through a\nrisk-based approach, this regulation not only provides convenience but\nalso delivers legal certainty, efficiency, and balanced protection\nbetween business operators and public interests.<\/p>\n
Simplified licensing does not mean neglecting quality and\nresponsibility. On the contrary, with a more structured system, better\nsupervision, and strong collaboration between central and regional\ngovernments as well as business operators, PP 28\/2025 is expected to\nserve as a catalyst for inclusive and sustainable economic growth.<\/p>\n
PP 28\/2025 is also expected to transform the business community\u2019s\nperception of government licensing services, from what was previously\nconsidered slow and non-transparent to something more measurable and\nreliable. Support from all levels of society for the implementation of\nthis regulation is the key to truly realising a healthy, fair, and\ncompetitive business climate in Indonesia.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-issues-new-risk-based-business-licensing-regulation-to-boost-investment-climate-1771254682", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }