MSME Ministry Stresses Importance of Business ID Number for Accessing Facilities

The Ministry of Micro, Small, and Medium Enterprises (UMKM) has emphasised the importance of having a Business Identification Number (NIB) for business actors, as it is a requirement for accessing various business facilities, including government programmes.

Deputy for Medium Enterprises at the UMKM Ministry, Bagus Rachman, stated that the NIB is an official identity that demonstrates the legality and classification of a business.

“With an NIB, they can enter government programmes that provide affirmation,” Bagus told reporters in Jakarta on Wednesday.

According to him, having an NIB also makes it easier for business actors to obtain access to financing because their business status and legality are officially recorded.

Bagus added that the NIB has now become a basic requirement in various business activities because it has replaced several licensing documents that previously had to be processed separately.

Regarding the still low number of business actors who have an NIB, Bagus admitted he does not yet know the exact cause. However, he suspects that some business actors are still worried that having an NIB will be linked to tax obligations.