Government Simplifies Business Identification Number (NIB) for Micro Enterprises, 40 Million MSMEs Still Unregistered

DIALEKSIS.COM | Jakarta - The government is accelerating the formalisation of micro-enterprises by simplifying the process of issuing a Business Identification Number (NIB). Through the Ease of Land Use Conformity (KKPR) policy, micro-enterprises can now manage their legal requirements with a simpler procedure via the Online Single Submission (OSS) system.

Deputy Minister of Micro, Small, and Medium Enterprises, Helvi Moraza, said that this step is important to expand access for MSME actors to finance and empowerment programmes.

“We strongly support the policy regarding NIB which simplifies the licensing process and does not burden MSME entrepreneurs,” said Helvi in an official statement received on Thursday (26/2/2026).

Data from the Ministry of MSMEs shows that of the approximately 56 million micro-enterprises in Indonesia, only about 15 million have an NIB. This means that there are still around 40 million micro-enterprises that have not entered the formal sector. To date, 14.9 million micro-enterprises have obtained an NIB through the OSS system, or about 96.9% of the total NIB registered.

Meanwhile, Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, explained that his ministry has issued Circular Letter Number 1.S Year 2026 concerning Provisions for the Issuance of KKPR for Micro-Enterprises. Through this regulation, business actors only need to fill in the location data of the business and submit a self-declaration of spatial conformity in the OSS.

“We want micro-enterprises to no longer be burdened with complicated procedures. The process is faster and simpler, but remains responsible,” he said.

The government believes that this simplification is part of a strategy to strengthen the national MSME ecosystem. With easier access to legality, business actors are expected to be more confident in developing their businesses, expanding their markets, and increasing their contribution to the national economy. [in]