Government Issues Risk-Based Business Licensing Regulation to Strengthen Investment Climate
The government has officially issued Government Regulation (PP) Number 28 of 2025 on the implementation of risk-based business licensing. The policy is regarded as a significant breakthrough in strengthening the national investment climate.
The Ministry of Investment/BKPM stated that the new regulation will promote legal certainty, simplify bureaucracy, and accelerate investment processes.
Deputy for Investment Climate Development at BKPM, Riyatno, said confidence in achieving the 2025 investment target of Rp1,905.6 trillion has grown stronger following the issuance of PP 28/2025.
"First quarter investment realisation already exceeded 24 per cent. With this regulation, we are increasingly optimistic that the national target can be achieved in line with the President's directives in the RPJMN," said Riyatno in Jakarta on Monday (30/6/2025).
He explained that the policy introduces certainty of timeframes in the licensing process through the implementation of Service Level Agreements (SLA) and the fictitious positive principle. Under the SLA framework, all types of permits — from basic to business and supplementary — have clear service time limits. If the relevant agency fails to respond within the specified period, the OSS-RBA system will automatically issue the permit, particularly for low-risk businesses.
"This is crucial for business operators. They no longer have to wait indefinitely without any time certainty. For low and medium-low risk sectors, permits can be issued automatically," he added.
Meanwhile, for high-risk businesses, verification by technical agencies will still apply, but within strict time limits as stipulated in the SLA.
Full implementation of PP 28/2025 will commence on 5 October 2025, following a four-month transition period. BKPM is also scheduled to issue implementing regulations in July 2025.
**Three Key Differences in PP 28/2025**
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, revealed that the regulation introduces three major innovations compared to previous rules:
**SLA Implementation**: Every stage of licensing must be completed within a specific time limit. For instance, the spatial conformity process at ATR/BPN must take a maximum of 25 working days, or 40 days if revisions are required.
**Fictitious Positive**: If an application is not responded to within the deadline, the permit will be issued automatically. This policy will be implemented in phases across several technical ministries including ATR/BPN, KLHK, KKP, and PUPR, as well as sectors such as agriculture, energy and mineral resources, tourism, and industry.
**OSS-RBA System Integration**: All permits — whether basic, sectoral, or supplementary — must be processed through the OSS-RBA system managed by BKPM. Standalone sectoral licensing systems will no longer operate.
Susiwijono added that OSS-RBA is now also equipped with three additional subsystems: basic requirements, business facilities, and partnerships. OSS-RBA has also been designated as the sole legal reference in the licensing process, and the government has prohibited any additional requirements beyond the provisions of this regulation, whether imposed by ministries, regional bodies, or zone administrators.
"The primary objective of this regulation is to simplify regulations, create business certainty, and harmonise central and regional policies. This will make Indonesia's investment climate far more competitive," he concluded.
The Ministry of Investment/BKPM stated that the new regulation will promote legal certainty, simplify bureaucracy, and accelerate investment processes.
Deputy for Investment Climate Development at BKPM, Riyatno, said confidence in achieving the 2025 investment target of Rp1,905.6 trillion has grown stronger following the issuance of PP 28/2025.
"First quarter investment realisation already exceeded 24 per cent. With this regulation, we are increasingly optimistic that the national target can be achieved in line with the President's directives in the RPJMN," said Riyatno in Jakarta on Monday (30/6/2025).
He explained that the policy introduces certainty of timeframes in the licensing process through the implementation of Service Level Agreements (SLA) and the fictitious positive principle. Under the SLA framework, all types of permits — from basic to business and supplementary — have clear service time limits. If the relevant agency fails to respond within the specified period, the OSS-RBA system will automatically issue the permit, particularly for low-risk businesses.
"This is crucial for business operators. They no longer have to wait indefinitely without any time certainty. For low and medium-low risk sectors, permits can be issued automatically," he added.
Meanwhile, for high-risk businesses, verification by technical agencies will still apply, but within strict time limits as stipulated in the SLA.
Full implementation of PP 28/2025 will commence on 5 October 2025, following a four-month transition period. BKPM is also scheduled to issue implementing regulations in July 2025.
**Three Key Differences in PP 28/2025**
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, revealed that the regulation introduces three major innovations compared to previous rules:
**SLA Implementation**: Every stage of licensing must be completed within a specific time limit. For instance, the spatial conformity process at ATR/BPN must take a maximum of 25 working days, or 40 days if revisions are required.
**Fictitious Positive**: If an application is not responded to within the deadline, the permit will be issued automatically. This policy will be implemented in phases across several technical ministries including ATR/BPN, KLHK, KKP, and PUPR, as well as sectors such as agriculture, energy and mineral resources, tourism, and industry.
**OSS-RBA System Integration**: All permits — whether basic, sectoral, or supplementary — must be processed through the OSS-RBA system managed by BKPM. Standalone sectoral licensing systems will no longer operate.
Susiwijono added that OSS-RBA is now also equipped with three additional subsystems: basic requirements, business facilities, and partnerships. OSS-RBA has also been designated as the sole legal reference in the licensing process, and the government has prohibited any additional requirements beyond the provisions of this regulation, whether imposed by ministries, regional bodies, or zone administrators.
"The primary objective of this regulation is to simplify regulations, create business certainty, and harmonise central and regional policies. This will make Indonesia's investment climate far more competitive," he concluded.