IKN Replaces Its Business Licensing Workflow

OIKN Regulation 10/2026 was established on 30 September and promulgated on 13 October 2026 in State Bulletin 2026 No. 689. It took effect on promulgation, revokes OIKN Regulation 2/2024 and moves every application that was still in process on that date into the replacement framework. The official national record was refreshed on 21 October, when Regulation Watch could verify the full signed text and legal metadata.

The framework covers risk-based business licensing, nonbusiness licensing and nonlicensing services. Risk-based business licensing is handled through OSS and includes the NIB, standard certificate or licence according to risk level, basic requirements, PB UMKU and investment facilities. Nonbusiness licensing and supporting approvals that are outside OSS are handled through the OIKN electronic system. OIKN technical units verify sector requirements, while the authority retains power to issue, sign and revoke its licensing products.

Land use is now an explicit front-end control. A business or applicant that will use land under OIKN management rights must first use the OIKN licensing consultation service. The resulting land-allocation document, spatial-information and parcel-planning package, and initial design and planning approval become permit requirements. Investors should therefore complete the land and design review before treating an OSS filing as a complete route to project approval.

The basic approval chain remains location-sensitive. A project generally needs KKPR, environmental approval, PBG and SLF before the dependent business licence or activity. Where an RDTR is integrated with OSS, confirmation of KKPR is automatic through OSS. Where an RDTR is unavailable or not integrated, the project follows the OIKN approval route with coordinates, land-control information, project type, floor and building-area data, and technical or master-plan documents. The regulation also provides detailed PBG and SLF review, inspection, amendment and renewal procedures.

For foreign investment, a PT PMA remains a large business. The general minimum investment is more than Rp10 billion excluding land and buildings for each five-digit KBLI at each project location, with different aggregation rules for wholesale trade, food and beverage services, construction, industrial production, property, accommodation, agriculture and specified activities. A foreign-investment limited company must generally have at least Rp2.5 billion in placed and paid-up capital per company. Capital is subject to a 12-month retention commitment, except for permitted business uses such as asset purchases, building construction or operations.

The regulation also operationalizes the foreign-worker route. An IKN employer must obtain an OIKN recommendation before submitting the foreign-worker plan through the integrated system. The recommendation supports RPTKA approval for up to ten years, renewable, and qualifying employers, including government strategic-project employers, remain exempt from the foreign-worker compensation fund through 2035. Manpower, immigration, counterpart-worker, knowledge-transfer and repatriation duties continue to apply.

The annex assigns licensing and verification responsibility across 31 sectors, including public works and housing, tourism, health, transport, environment, energy, trade and industry. A project with several KBLIs or support activities may therefore involve several technical units even though the filing enters through OSS or the OIKN electronic system. Internal project plans should identify each approval owner, dependency and evidence set.

Regulation 10/2026 should be read with OIKN Regulation 1/2026 on licensing supervision. OIKN may use electronic and field supervision, request records and act on public complaints. Depending on the breached obligation, enforcement can progress through warnings, temporary suspension, administrative fines, police coercive measures, closure and revocation of licensing products. An investor should preserve a single audit file covering corporate, investment, land, spatial, environmental, construction, manpower and operating compliance.