Government Simplifies Business Licensing Through New Regulation
Jakarta, CNBC Indonesia - The government has issued a regulation to simplify the business licensing process in Indonesia through Government Regulation Number 28 of 2025.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, explained that under this simplification, the verification system will be carried out automatically for company licensing applications through service level agreements (SLAs). This will provide both domestic and foreign investors with swift certainty.
"The timeframes are now fixed, each with a set number of days. For example, the Regional Spatial Utilisation Activity Conformity (KKPR) requires 25 days, and we at the BKPM Ministry have already issued SLAs for all company permits," Riyatno told reporters at the Coordinating Ministry for Economic Affairs office on Monday (30/6/2025).
Riyatno explained that, as an example, if a company submits a licensing application and no SLA is issued within 10 days, the permit will be granted automatically. However, this automatic issuance only applies to low-risk licensing applications.
"For high-risk and medium-high-risk categories, verification will still be conducted. Meanwhile, for low-risk and medium-low-risk categories, permits are issued automatically, meaning without verification by central government officials," he said.
The first key provision in Government Regulation 28/2025 stipulates that each business licence issuance must have a fixed timeframe. This applies to the issuance of basic requirements, business licences (PB), and business licences for supporting business activities (PB UMKU).
The issuance process for basic requirements, PB, and PB UMKU must comply with the established service level agreements.
"We have already implemented this and there are now at least four company permits that are issued automatically, meaning without verification by ministries or institutions," said Riyatno.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, explained that under this simplification, the verification system will be carried out automatically for company licensing applications through service level agreements (SLAs). This will provide both domestic and foreign investors with swift certainty.
"The timeframes are now fixed, each with a set number of days. For example, the Regional Spatial Utilisation Activity Conformity (KKPR) requires 25 days, and we at the BKPM Ministry have already issued SLAs for all company permits," Riyatno told reporters at the Coordinating Ministry for Economic Affairs office on Monday (30/6/2025).
Riyatno explained that, as an example, if a company submits a licensing application and no SLA is issued within 10 days, the permit will be granted automatically. However, this automatic issuance only applies to low-risk licensing applications.
"For high-risk and medium-high-risk categories, verification will still be conducted. Meanwhile, for low-risk and medium-low-risk categories, permits are issued automatically, meaning without verification by central government officials," he said.
The first key provision in Government Regulation 28/2025 stipulates that each business licence issuance must have a fixed timeframe. This applies to the issuance of basic requirements, business licences (PB), and business licences for supporting business activities (PB UMKU).
The issuance process for basic requirements, PB, and PB UMKU must comply with the established service level agreements.
"We have already implemented this and there are now at least four company permits that are issued automatically, meaning without verification by ministries or institutions," said Riyatno.