Government Relaxes Requirements for Business Identification Numbers (NIB) for Micro Enterprises in OSS, Here's the Procedure
Bisnis.com, JAKARTA — The Ministry of Investment and Downstreaming/Capital Investment Coordinating Board (BKPM) has officially revised the rules for issuing Business Identification Numbers (NIB) for micro-enterprises in the Online Single Submission (OSS) system after receiving numerous complaints.
Through Circular Letter (SE) No. 1.S of 2026 issued by the Minister of Investment and Downstreaming/Head of BKPM regarding the Provisions for Issuing Land Use Conformity (KKPR) for Micro Enterprises, the government has relaxed the KKPR requirements specifically for businesses at the lower end of the scale. With the new scheme, micro-enterprises can now simply use the ‘self-declaration’ mechanism within the OSS system.
The procedure requires business owners to only input administrative data, complete address, land area, one coordinate point of the location, and attach a photo of the front of the business premises. After the data is entered, the system will process the self-declaration, but will still consider the spatial planning context.
“Therefore, for these micro-enterprises, all types of business permits, including risk assessments, can be done directly through self-declaration. However, the location of the business must still be considered,” explained the Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM in Jakarta (February 26, 2026).
Todotua acknowledged that the initial implementation of Government Regulation (PP) No. 28/2025 regarding business licensing had caused significant confusion in the field.
He admitted that he received a flood of complaints every day, both through his personal social media accounts and WhatsApp messages. The complaints were often similar, stating that the strict requirements regarding business location made the OSS system even more difficult for small businesses.
“Every day, we receive complaints about this, ‘Mr. Deputy Minister, what’s going on? 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.
He explained that under PP 28/2025, business owners can no longer simply obtain a business license without validating the location of their business. This provision was the main obstacle.
Pursuing the Target of 40 Million ‘Illegal’ MSMEs
The Deputy Commissioner of Pertamina emphasized that this improvement to the OSS is crucial given the significant gap between the number of businesses in the country and the number of businesses registered in the national system.
According to BKPM data, the total number of NIBs issued has reached 15.42 million, including individual, micro, small, medium, and large enterprises, both domestic and foreign. On the other hand, consolidated data from the Ministry of MSMEs shows that the population of micro-enterprises in Indonesia has reached approximately 56 million entities.
“There are still around 40 million that have not been legalized. Therefore, we need to improve the OSS system so that the process of obtaining business permits can be faster,” Todotua concluded.