Government Regulation (PP) Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

This Government Regulation, implementing provisions of article 12 of the Law no. 11 of 2020 concerning job creation, provides for implementation of risk-based business licensing, in order to improve investments and thus business activity. The Regulation covers the following matters: business licensing; risk, as potential losses, due to a combination of danger and hazard; special economic area; free trade area; standard certificate; statement of capability for environmental management and monitoring; micro, small and medium enterprises; monitoring activity; standard classification of Indonesian business activity; capital investment; integrated business licensing system. According to the Regulation, the implementation of risk-based business covers the following matters: norms, standards, procedures and licensing criteria; procedures for monitoring activity; funding. The implementation of risk-based business includes the following sectors: maritime affairs and fisheries, agriculture, environment and forestry, energy and mineral resources, nuclear energy, industry, trade, transport, health, medicine and food security, public works. For each sector the ministries and the responsible authorities provide guidelines, standards, parameters and risk analysis for issuing risk-based business licenses.
Concerning the maritime and fisheries sector, business licensing consists of: marine space management, fish catching, fish transport, aquaculture, fish processing and fish marketing, salt production, biotechnology, utilisation of sea water for energy production, utilisation of protected fish species according to the provisions of the CITES Convention, limitation on the size of fishing vessels. Concerning the agricultural sector, business licensing consists of: plantation and seed production, crops, horticulture, food security, animal husbandry, animal health, agricultural facilities. Business licensing in the environmental and forestry sector is based on: forest utilisation, management of hazardous and toxic waste, waste water treatment, utilisation of environmental services in the protected areas, utilisation of wild plants and animal resources, utilisation of production forests, processing of forest products, utilisation of water services for energy production. The energy and mineral resources sector focuses on the following topics: oil and natural gas, electricity, minerals and coal, renewable energy, mining activity, nuclear energy.
The Regulation also provides norms and standards for the water resources sector, including environmental conditions of water resources, method of collecting and disposing of water. Concerning health and food sector, the business licensing consists of: health services, medical devices, control of animal diseases, vectors and carriers, quality control of treated and processed food. Further matters covered by this Regulation include: procedures for supervision and monitoring risk-based business licenses; data and information collection; sanctions and penalties for government officials and for business actors in the different sectors.