Legal News Update
Contributors: Almaida Askandar, S.H., MBA, Nita Damayanti, S.H., Renata Luisa Kusuma, S.H.
Published on 22 May 2026 by IABF Law Firm, Jakarta, Indonesia.
The Issuance of Business Licensing in the Industrial Sector
In the industrial sector, a business actor applying for business licensing must possess an account in the Indonesian National Industrial Information System (or Sistem Informasi Industri Nasional) in accordance with Minister of Industry Regulation Number 37 of 2025 on Standards for Business Activities and/or Products/Services Standards for Risk-Based Business Licensing in the Industrial Sector (“Regulation 37/2025”). The issuance of business licensing is conducted electronically through the Online Single Submission (OSS) which is integrated with the Indonesian National Industrial Information System (or Sistem Informasi Industri Nasional). Other provisions regarding the issuance of business licensing will be explained below.
I. Requirements in Relation to Business Scale and Risk Level
Regulation 37/2025 provides the following conditions regarding the issuance of business licensing in the industrial sector:
| No. | Business Scale | Business Capital (Excluding Land and Building) |
| 1. | Micro | up to Rp 5 billion |
| 2. | Medium | more than Rp 5 billion up to Rp 10 billion |
| 3. | Large | more than Rp 10 billion |
| No. | Risk Level | Business Licensing | Requirements |
| 1. | Low | Business Identification Number or Nomor Induk Berusaha (“NIB”) | N/A |
| 2. | Medium-Low | · NIB, and
· Standard certificate
|
The assessment of all requirements is conducted through the statement of compliance from the business actor to fulfil the standard(s) of business and/or product and/or service in terms of doing business activity. |
| 3. | Medium-High | · NIB, and
· Standard certificate with verification
|
The assessment of all requirements is conducted through the statement of compliance from the business actor to fulfil the standard of business activity in the industrial sector accompanied by the targeted schedule/date of production plan/estimation through the OSS. |
| 4. | High | · NIB, and
· Business License
|
The business license is issued after the business actor obtains the NIB and the completion of other requirements which are conducted through verification. |
II. Indonesian Standard Industrial Classification/Klasifikasi Baku Lapangan Usaha Indonesia
(“KBLI”)
Regulation 37/2025 stipulates that the issuance of business licensing is subject to the relevant KBLI for each business activity as follows:
| No. | Type of KBLI | Requirements |
| 1. | Activity under 1 (one) production line which produces multiple products (i) with different 5-digit KBLI code and (ii) operated in the same location | a) Utilizing a series of machines in an integrated process which produces multiple products with different KBLI and operated in the same location;
b) The business activities are located in an integrated ecosystem of activity; and c) The entire series of machines and/or production equipment has been installed and is ready for commercial production. |
| 2. | Activities which produce multiple services (i) with different 5-digit KBLI code and (ii) operated in the same location | a) Using the same method/technology which produces multiple services with different KBLI and operated in the same location;
b) Business activity which is located in an integrated ecosystem of activity; and c) The entire series of machines and/or equipment that is used for business activity has been installed. |
Disclaimer
This news update is prepared for general informational purposes only. The content does not constitute legal advice, a legal opinion, or counsel from IABF Law Firm. The information contained herein may not reflect the most current developments. Any quotation, distribution, or use of this information for any purpose is solely at the user’s own risk.
