Government Regulation 28/2025: A Complete Overhaul of Indonesia's Risk-Based Business Licensing System
Managing a business permit is no longer cumbersome — it can now be done via mobile phone and completed in minutes. But did you know that the OSS (Online Single Submission) system is undergoing a total overhaul through Government Regulation (PP) 28 of 2025?
In recent weeks, business operators, notaries and legal consultants have been actively discussing the issuance of Government Regulation Number 28 of 2025. This regulation officially replaces PP 5 of 2021 and introduces numerous significant changes to the risk-based business licensing system (OSS RBA).
A closer examination of this regulation reveals a considerable number of noteworthy points worth understanding — particularly for those currently operating, planning to establish, or having recently launched a legal business in Indonesia.
**Why Is PP 28/2025 Important?**
Since its implementation, OSS RBA has been a game changer in the licensing landscape. However, numerous complaints persisted regarding overlapping regulations, slow institutional responses and a lack of legal certainty.
PP 28 of 2025 arrives as a refinement. Its contents affirm that all business licensing must be conducted through the OSS system, including sectors that were previously not integrated. There is also the addition of ministries and agencies now participating in the system.
**Basic Requirements: What You Must Know Before Applying for a Permit**
Before obtaining a business permit or NIB (Business Identification Number), this regulation mandates the fulfilment of three basic requirements:
1. KKPR — Conformity of Spatial Utilisation Activities
2. Environmental Approval — which may take the form of an SPPL, UKL-UPL, or Amdal (Environmental Impact Assessment)
3. Building Approval (PBG) and Certificate of Building Worthiness (SLF)
For example, if one wishes to open a restaurant in a commercial area and the building already holds PBG and SLF certification, the process can proceed directly into the OSS system without significant obstacles.
**Deemed Approval and SLA: Automatic Permits When Government Is Slow**
One of the breakthroughs in this regulation is the implementation of a deemed approval (fiktif-positif) policy. This means that if a government agency fails to respond to a permit application within a specified timeframe (SLA), the permit is deemed to have been automatically issued.
In recent weeks, business operators, notaries and legal consultants have been actively discussing the issuance of Government Regulation Number 28 of 2025. This regulation officially replaces PP 5 of 2021 and introduces numerous significant changes to the risk-based business licensing system (OSS RBA).
A closer examination of this regulation reveals a considerable number of noteworthy points worth understanding — particularly for those currently operating, planning to establish, or having recently launched a legal business in Indonesia.
**Why Is PP 28/2025 Important?**
Since its implementation, OSS RBA has been a game changer in the licensing landscape. However, numerous complaints persisted regarding overlapping regulations, slow institutional responses and a lack of legal certainty.
PP 28 of 2025 arrives as a refinement. Its contents affirm that all business licensing must be conducted through the OSS system, including sectors that were previously not integrated. There is also the addition of ministries and agencies now participating in the system.
**Basic Requirements: What You Must Know Before Applying for a Permit**
Before obtaining a business permit or NIB (Business Identification Number), this regulation mandates the fulfilment of three basic requirements:
1. KKPR — Conformity of Spatial Utilisation Activities
2. Environmental Approval — which may take the form of an SPPL, UKL-UPL, or Amdal (Environmental Impact Assessment)
3. Building Approval (PBG) and Certificate of Building Worthiness (SLF)
For example, if one wishes to open a restaurant in a commercial area and the building already holds PBG and SLF certification, the process can proceed directly into the OSS system without significant obstacles.
**Deemed Approval and SLA: Automatic Permits When Government Is Slow**
One of the breakthroughs in this regulation is the implementation of a deemed approval (fiktif-positif) policy. This means that if a government agency fails to respond to a permit application within a specified timeframe (SLA), the permit is deemed to have been automatically issued.