Trade Minister Budi Affirms MSME NIB Not Related to Tax Matters

Trade Minister Budi Santoso has stressed that the requirement for business actors on electronic trading platforms to possess a Business Identification Number (NIB) is unrelated to taxation. The policy, he stated, is aimed at strengthening business legality. The assertion was made to counter a prevailing stigma on social media suggesting that the NIB obligation would subject business actors, particularly micro, small and medium enterprises (MSMEs), to additional taxes. He confirmed this perception is incorrect. “The NIB is essentially about legality. The NIB has nothing to do with tax. I see friends on social media acting as if they will be taxed, there is no connection,” Budi said in Jakarta on Monday, 22 June 2026. According to him, every business activity, whether conducted by an individual or a business entity, is indeed required to have an NIB as a form of business legality. This provision is part of the Minister of Trade Regulation (Permendag) Number 19 of 2026 concerning the organisation of trading business through electronic systems (PMSE). Budi stated that NIB ownership provides several benefits for business actors. Besides offering legal certainty, business legality also facilitates access to banking services and financing. “Once they have legality, their access to banking and financing becomes easier,” he said. Furthermore, the NIB is considered capable of increasing consumer trust in sellers on digital platforms. According to him, trust is a crucial factor in online transactions, making business legality a form of assurance for consumers. To provide adequate adaptation time, the government has set a grace period of 18 months for traders already selling on platforms and six months for new traders to fulfil the business licensing obligation. Budi added that the NIB application process can now be done online, is free of charge, and is relatively quick. He also assured that the Ministry of Trade is ready to provide assistance and facilitation for MSME actors experiencing difficulties in the NIB creation process. “Applying for an NIB is free and easy. Everything is sufficiently done online. It can be completed in just a short while, maybe 30 minutes. There are many guides available on the procedures,” he added.