BKPM Simplifies NIB Issuance for Micro Enterprises
BKPM Simplifies NIB Issuance for Micro Enterprises
The Ministry of Investment and Downstreaming/Indonesia Investment Coordinating Board (BKPM) has revised the regulations for issuing Business Identification Numbers (NIB) for micro-enterprises. This step was taken after numerous complaints regarding the Online Single Submission (OSS) system.
As stated in Circular Letter (SE) No. 1.S of 2026 issued by the Minister of Investment and Downstreaming/Head of BKPM, the government has relaxed the requirements for Land Use Conformity (KKPR) specifically for micro-enterprises. Micro-enterprises can now use a ‘self-declaration’ mechanism within the OSS system.
The procedure involves inputting administrative data, complete address, land area, location coordinates, and a photo of the front of the business premises. The OSS system will process the self-declaration while still considering land-use context.
The Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM stated in Jakarta on February 26, 2026, that all types of business licenses and risks for micro-enterprises can be resolved through self-declaration, but the business location will still be a consideration.
Todotua acknowledged that the initial implementation of Government Regulation (PP) No. 28/2025 had caused some confusion. Many protests were received daily through social media and WhatsApp messages, with the main complaint being the strict requirements for business location.
“Every day, we received complaints about this, ‘Sir Deputy Minister, what’s going on? The OSS is a mess, it’s getting more difficult… These small business owners are struggling to obtain an NIB,’” he said during the Socialization of Amendments to PP 28/2025 at the BKPM Office.
Under the PP 28/2025 regime, business owners could no longer simply obtain a business license without validation of the business location, which was a major obstacle.
This improvement to the OSS is considered crucial given the gap between the number of businesses and the level of legality registered in the state system. BKPM data shows that only 15.42 million NIBs have been issued, while data from the Ministry of Cooperatives and SMEs records approximately 56 million micro-enterprises in Indonesia.
Todotua concluded that there are still around 40 million businesses that have not been legalized, so improvements to the OSS are needed to accelerate the issuance of business licenses.