MSME Ministry: Business Registration Number Key to Accessing Facilities and Financing

The Ministry of Micro, Small, and Medium Enterprises (Kementerian UMKM) has emphasised that possessing a Business Registration Number (NIB) is not merely an administrative formality, but an absolute requirement for business actors to access various strategic facilities and government affirmation programmes. Deputy for Medium Enterprises Bagus Rachman explained that the NIB serves as an official identity validating the legality and classification of a business unit. Without this identity, business actors will struggle to enter the support ecosystem provided by the state. “With an NIB, business actors can access government programmes that provide affirmation,” Bagus stated in Jakarta on Wednesday (17/6/2026). He further outlined several concrete advantages for NIB holders. Bagus Rachman also dismissed concerns among business actors regarding tax burdens after obtaining an NIB. He confirmed that MSMEs with an annual turnover of up to Rp500 million are exempt from final Income Tax (PPh), effectively subject to a zero per cent rate. Data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) shows that as of 2025, only around 16 million business actors have secured an NIB. This figure remains far below the national estimate of 56 million MSME units. To close this gap, the Ministry of MSMEs is developing the Sapa UMKM platform. This innovation is designed to integrate various services across ministries and agencies into a single digital ecosystem. “I think (NIB ownership) will naturally be encouraged later. Once one service connects with another within the ecosystem, they will realise how crucial the function of the NIB is,” Bagus concluded.