Government Regulation (PP) No. 28 of 2025 concerning the Implementation of Risk-Based Business Licensing
Country
Type of law
Regulation
Abstract
This instrument aims to simplify and streamline business licensing procedures by implementing a risk-based approach, thereby enhancing the investment ecosystem and facilitating the ease of starting and running a business in support of job creation. It replaces the previous Government Regulation No. 5 of 2021 to provide legal certainty, clarify business processes, and guarantee service quality in alignment with Law No. 6 of 2023
The regulation outlines the general framework and scope of PBBR, which includes basic requirements, business licensing (PB), business licensing to support business activities (PB UMKU), norms, standards, procedures, criteria, OSS system services, supervision, and policy evaluation. It categorizes business licenses across diverse sectors, including marine affairs and fisheries, agriculture, forestry, energy and mineral resources, industry, trade, and health. To obtain a business license, business actors must first fulfill basic requirements processed electronically through the Online Single Submission (OSS) system, which integrates with relevant ministry and agency platforms
The basic requirements comprise the Suitability of Space Utilization Activities (KKPR), Environmental Approval (PL), and Building Approval (PBG) along with the Certificate of Functionality (SLF). Location verification is divided into land and sea routes, utilizing KKPR and KKPRL respectively, with specific provisions for small islands under 100 square kilometers and forest areas. The regulation details procedural timelines, verification steps, and administrative responsibilities of the central government, regional governments, Special Economic Zone (KEK) Administrators, and Free Trade Zone and Free Port (KPBPB) Management Agencies.
Environmental Approval (PL) is mandatory and structured according to potential environmental impacts, processed through Environmental Impact Analyses (Amdal), Environmental Management and Monitoring Efforts (UKL-UPL), or Statements of Environmental Management and Monitoring Capability (SPPL). The instrument defines the technical approvals, assessment stages by the Environmental Feasibility Test Team, and automatic registration options for Micro and Small Enterprises (UMK) through self-declarations.
The regulation outlines the general framework and scope of PBBR, which includes basic requirements, business licensing (PB), business licensing to support business activities (PB UMKU), norms, standards, procedures, criteria, OSS system services, supervision, and policy evaluation. It categorizes business licenses across diverse sectors, including marine affairs and fisheries, agriculture, forestry, energy and mineral resources, industry, trade, and health. To obtain a business license, business actors must first fulfill basic requirements processed electronically through the Online Single Submission (OSS) system, which integrates with relevant ministry and agency platforms
The basic requirements comprise the Suitability of Space Utilization Activities (KKPR), Environmental Approval (PL), and Building Approval (PBG) along with the Certificate of Functionality (SLF). Location verification is divided into land and sea routes, utilizing KKPR and KKPRL respectively, with specific provisions for small islands under 100 square kilometers and forest areas. The regulation details procedural timelines, verification steps, and administrative responsibilities of the central government, regional governments, Special Economic Zone (KEK) Administrators, and Free Trade Zone and Free Port (KPBPB) Management Agencies.
Environmental Approval (PL) is mandatory and structured according to potential environmental impacts, processed through Environmental Impact Analyses (Amdal), Environmental Management and Monitoring Efforts (UKL-UPL), or Statements of Environmental Management and Monitoring Capability (SPPL). The instrument defines the technical approvals, assessment stages by the Environmental Feasibility Test Team, and automatic registration options for Micro and Small Enterprises (UMK) through self-declarations.
Attached files
Web site
Date of text
Repealed
No
Serial Imprint
State Gazette of The Republic of Indonesia No. 98 of 2025
Source language
English
Legislation Amendment
No
Original title
Peraturan Pemerintah (PP) Nomor 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko