How BKPM Is Expediting Permits for 40 Million MSMEs

Tue, 24 Feb 2026, 21:17 WIB | By | Source: LIPUTAN6.COM | Regulation

Liputan6.com, Jakarta - The government, through the Investment Coordinating Board (BKPM), will expedite the issuance of permits for 40 million micro, small, and medium enterprises (MSMEs) in Indonesia, as they currently do not possess a Business Identification Number (NIB).

The agency has issued a Circular Letter from the Minister of Investment and Downstream Industries/Head of BKPM Number 1 of 2026 regarding the provisions for issuing land-based Business Activity Suitability Permits (PKKPR) for micro-enterprises as a solution.

Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM, Todotua Pasaribu, plans to realise the legalisation of these businesses through the Online Single Submission (OSS) system. The circular letter will become a ministerial regulation within three months.

“That is also why there are government programmes in the Coordinating Ministry for MSMEs, and their distribution can also be faster and more measurable,” said Todo at the Ministry of Investment and Downstream Industries/BKPM Office, South Jakarta, Tuesday (24/2/2026).

He explained that the obligation to fulfil the Land Use Activity Suitability Permit (PKKPR) or location permit is often a bottleneck. This is because the process is time-consuming, requiring several technical requirements, which leads to delays in the issuance of the NIB.

In the future, micro-enterprises will only need to specify the location and address of their business through the OSS system. After submitting a self-declaration, the PKKPR approval can be issued automatically.

“And this can be done without any further technical verification, and the NIB can be issued,” he said.

Todotua noted that to date, the number of NIBs issued has reached approximately 15.2 million. Of this number, about 14.9 million are micro-enterprises, while the potential number of micro-enterprises in Indonesia is estimated to be around 56 million.

Many MSMEs Do Not Have NIBs Because They Are Unfamiliar with the Procedures; BKPM Takes the Initiative

Previously, the Ministry of Investment/BKPM held socialisation and assistance activities for the processing of Business Identification Numbers (NIBs) for individual Micro and Small Enterprises (UMK), which were held from 22 November to 12 December 2023, in the Cilincing, Koja, and Marunda sub-districts of North Jakarta.

This activity was conducted directly by the Special Staff for the Improvement of National Entrepreneurs of the Ministry of Investment/BKPM, M. Pradana Indraputra. More than 400 UMKs have successfully processed their NIBs through the OSS Indonesia application with direct guidance from the Ministry of Investment/BKPM.

“This assistance activity for processing Business Permit Numbers (NIBs) aims to facilitate micro, small, and medium enterprises (MSMEs), especially in North Jakarta, in obtaining permits and managing the legality of their businesses online, thereby facilitating their business processes,” said the Special Staff for the Improvement of National Entrepreneurs of the Ministry of Investment/BKPM, M. Pradana Indraputra, in a written statement in Jakarta, Wednesday (13/12/2023).

“With direct support from Ministry of Investment/BKPM staff in assisting with the online application process through the One-Stop Submission System (OSS), the NIB can be issued immediately, making the permitting process faster and more efficient,” he added.

The implementation of Risk-Based Business Licensing through the Online Single Submission (OSS) is the implementation of Law Number 11 of 2020 concerning Job Creation. OSS aims to provide business licensing services to support business activities (PB UMKU) that are necessary for business activities or products during the operational and commercial stages.

“Through OSS, business actors do not need to go through the hassle of managing various permits directly with the relevant agencies, as this can be done electronically through the OSS application/website, which is in line with the government’s efforts to facilitate licensing for small businesses,” added Dana, his nickname.

Unaware of the Procedures

Many residents in North Jakarta have not obtained NIBs because they are not aware of the procedures, which are actually quite simple. One of the micro-entrepreneurs from Koja, North Jakarta, is Musriyah.

“It turns out that the process of creating an NIB is not as complicated as I thought. With the assistance of staff from the Ministry of Investment/BKPM, I now know how to fill it out, and it is so easy, all I need is an ID card,” said Musriyah.

Through the NIB registration, business actors will benefit in terms of financing. One of them is easier access to People’s Business Credit (KUR).

KUR Interest

Dana, who is also the Chairman of the Millennial and Business Center ILUNI UI, added that through KUR, the interest rate charged to users will be only 3 per cent, and the rest will be subsidised by the government.

“Other benefits include the fact that when MSMEs have an NIB, they will automatically be recorded in the central government, which will make it easier for related departments to provide training and guidance on business skills according to their domicile. With the data already recorded in the database, we can easily provide programmes that will be useful for MSMEs in a targeted manner according to their needs,” he explained.

This activity reaffirms the commitment of the Ministry of Investment/BKPM RI in supporting the growth and development of MSMEs as the backbone of the Indonesian economy. Business actors need to be provided with assistance in order to obtain various licensing facilities such as NIBs. Furthermore, the Ministry of Investment will continue to innovate and provide technology-based services to facilitate small businesses. “We will continue to carry out socialisation and assistance in the future to support MSMEs in competing nationally and even internationally,” said Dana.

Thus, the NIB processing assistance activity in North Jakarta reaffirms the commitment of the Ministry of Investment/BKPM in continuing to support the growth and development of micro, small, and medium enterprises. In the future, it is hoped that MSMEs will be able to contribute even more to the creation of jobs and the improvement of the community’s economy. “This commitment will continue to be implemented through various programmes in accordance with the aspirations of business actors,” he concluded.

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