BKPM Highlights Slow Licensing, Hindering MSMEs
BKPM Highlights Slow Licensing, Hindering MSMEs
Friday, 27 February 2026 | 04:15 WIB
Jakarta, Beritasatu.com - The Ministry of Investment and Downstreaming/Indonesia Investment Coordinating Board (BKPM) has acknowledged that slow business licensing processes have the potential to erode economic activity, especially in the micro-enterprise sector.
The process of issuing licenses, which takes months, is considered to be holding back small businesses from starting operations and generating economic added value.
This condition is the basis for the government to improve Government Regulation (PP) No. 28 of 2025, especially regarding the acceleration of the issuance of Business Identification Numbers (NIB) through the Online Single Submission (OSS) system.
This reform is aimed at reducing administrative obstacles that have long hindered micro-enterprises from starting their business activities.
“It’s not right that someone who only wants to sell meatballs has to wait months to get their NIB,” said Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, at the Ministry of Investment and Downstreaming Office, Jakarta, Thursday (26/2/2026).
Todotua emphasized that the government does not yet have exact figures on the size of the potential economic losses due to slow licensing.
However, BKPM understands that the impact is very significant, given that around 90% of national business actors come from the micro-enterprise segment, which needs a fast licensing process to survive and grow.
“This has a very big impact, especially for micro-enterprises,” he said.
He explained that before PP 28/2025 was improved, micro-enterprises were required to go through the process of clarification of the Approval of Conformity of Space Utilization Activities (PKKPR) or location permits, which often took a long time. This process was considered not commensurate with the scale of micro-enterprises, which are generally simple.
Through the improvement of regulations, micro-enterprises are now allowed to independently declare location permits on the OSS by still including the business location. With this mechanism, the NIB can be issued more quickly without waiting for a lengthy clarification process.
According to him, fast licensing will encourage business actors to immediately start production and transactions, so that economic activity moves faster and contributes directly to the realization of national investment.
With this licensing reform, the government hopes that the economic potential that was previously held back due to slow licensing processes can be immediately released, especially from the micro-enterprise sector, which is the backbone of the national economy.
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