Regulation Watch · Business Licensing · Indonesia
Indonesia's New OSS Business Licensing Framework
PP 28/2025 replaces the previous risk-based licensing framework, while BKPM Regulation 5/2025 sets the procedures businesses use through OSS.
- Published
- 5 June 2025
- Effective
- 5 June 2025; OSS transition from 5 October 2025
- Updated
- 7 September 2026
Who is affected
Indonesian companies, foreign investment companies, business owners, investors, and professional advisers using the OSS system.
Practical impact
The framework changes how business risk levels, basic approvals, business licences, supporting licences, supervision, and administrative sanctions are handled. Existing and planned projects should be checked against the current OSS requirements rather than relying on the former PP 5/2021 framework.
PP 28/2025 is the central legal framework for risk-based business licensing and replaces PP 5/2021. BKPM Regulation 5/2025 provides the operational procedures for licensing and investment facilities through OSS.
Businesses should not assume that every existing licence must be submitted again. The correct approach is to verify each project's status, commitments, and transition treatment directly in OSS.
Required action
- Review each KBLI and its current risk classification in OSS.
- Check whether the company has completed all basic requirements, business licences, and PB UMKU commitments.
- For transition projects created before 5 October 2025, confirm whether the OSS legacy-data process applies.