Jakarta, CNBC Indonesia - The government has simplified and\naccelerated the business licensing process in Indonesia. This policy was\nestablished through the issuance of Government Regulation Number 28 of\n2025, forming part of the deregulation package driven by President\nPrabowo to strengthen Indonesia\u2019s competitiveness.<\/p>\n
Deputy for Investment Climate Development at the Ministry of\nInvestment and Downstreaming\/BKPM, Riyatno, explained that the first key\nprovision in GR 28\/2025 is that each business licence issuance now has a\ndefinite timeframe. This applies to the issuance of basic requirements,\nbusiness licences (PB), and business licences supporting business\nactivities (PB UMKU).<\/p>\n
The issuance process for basic requirements, PB, and PB UMKU must\ncomply with the established service level agreement (SLA).<\/p>\n
\u201cWe have already implemented this, and there are at least four\ncompany licences that are now issued automatically, meaning they are not\nverified by ministries or agencies,\u201d Riyatno told reporters at the\nCoordinating Ministry for Economic Affairs office on Monday (30 June\n2025).<\/p>\n
Riyatno explained that the verification system will operate\nautomatically for company licence applications, ensuring that both\ndomestic and foreign investors receive swift certainty.<\/p>\n
\u201cFor example, if a company licence application is submitted and the\nSLA is 10 days but the licence has not been issued within that period,\nthe system will issue it automatically. For high-risk and\nmedium-high-risk categories, verification will be conducted. Meanwhile,\nfor low-risk and medium-low-risk categories, licences are issued\nautomatically without verification by central government officials,\u201d he\nsaid.<\/p>\n
Going forward, approximately 61 ministerial regulations or agency\nhead regulations from various ministries will be issued as derivatives\nof GR 28\/2025. The deadline for completing all supporting regulations is\nfour months from issuance, namely 5 October 2025. Nevertheless, Riyatno\nassured that his office would complete them by July 2025.<\/p>\n
\u201cThe target is hopefully to finish within this month. Because October\nis for operational systems in accordance with the provisions in GR 28 \u2014\nthe regulations need to come first. God willing, the target is July,\u201d he\nsaid.<\/p>\n
Under the new regulation, the government stipulates that PB UMKU is\nto be applied for by business operators at the operational and\/or\ncommercial stage, meaning the phase after commencing business\nactivities.<\/p>\n
The government has also reduced the number of PB UMKU by classifying\nthem into four groups: product distribution, operational feasibility,\nproduct or service standardisation, and smooth business operations. All\noperational business licences not falling within these four groups are\nexcluded from the PB UMKU category.<\/p>\n
This, Riyatno said, has had a significant impact in reducing the\nnumber of PB UMKU from over 1,000 to approximately 350.<\/p>\n
Finally, the fourth key provision concerns strengthened supervision.\nThis enhanced oversight adopts the concept of integrated inspection and\nreporting, aimed at simplifying the implementation of supervision and\nstrengthening its substance to ensure compliance with established\nstandards. Supervision will be conducted in an integrated manner using\nthe OSS RBA supervision subsystem, ensuring coordination so that\nbusinesses are not subjected to repeated inspections from multiple\nagencies.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-simplifies-business-licensing-with-fixed-timelines-under-new-regulation-1771251310", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }