Need guidance adapting your business to comply with PP 28/2025?
In its ongoing effort to streamline and modernize business licensing procedures, the Indonesian government recently issued Government Regulation No. 28 of 2025 (PP 28/2025), revoking the previous PP No. 5 of 2021. This new regulation reinforces the Risk-Based Business Licensing (PBBR) framework, providing businesses with clearer processes, greater certainty, and a more transparent regulatory environment.
Here are the key highlights of PP 28/2025, which officially took effect on June 5, 2025, and the implications for businesses operating in Indonesia.
Risk-Based Business Licensing remains at the heart of the regulatory approach. Under this system, licensing requirements are scaled based on the assessed risk level of business activities. Higher-risk activities require more comprehensive documentation and stricter compliance measures.
PP 28/2025 significantly broadens the implementation of this approach, clearly defining basic requirements, mandatory business licensing (PB), supporting business licenses for MSMEs (PB-UMKU), norms, standards, procedures, and criteria (NSPK), OSS platform services, and supervision mechanisms.
One of the most notable changes in PP 28/2025 involves environmental (PL) and technical approvals (Pertek). Previously burdensome manual submissions are now fully integrated into the Online Single Submission (OSS) platform. Every step, from application submission to verification and approval, is completed electronically, enhancing transparency and accountability.
The regulation explicitly sets clear timelines for environmental impact assessments:
If the authorities exceed these deadlines, businesses can proceed by attaching evidence of their Pertek application, significantly reducing bottlenecks and uncertainty.
PP 28/2025 also simplifies licensing for businesses operating under multiple KBLI (Indonesian Standard Industrial Classifications). Under the new regulation, a single environmental approval can cover multiple business activities, provided they are integrated and located within the same operational area.
For companies located within industrial estates, Special Economic Zones (KEK), or Free Trade Zones, the regulation requires tenants to prepare detailed Environmental Management and Monitoring Plans (RKL-RPL) aligned with the overarching estate environmental documents.
Approval of these detailed plans by zone administrators is mandatory for obtaining relevant business licenses, offering businesses improved clarity and operational ease.
Notably, PP 28/2025 introduces parallel processing of environmental and technical approvals via the OSS platform, streamlining the licensing timeline. Additionally, the regulation facilitates the delegation of authority for issuing these approvals to regional governments, including governors, mayors, or zone administrators, expediting licensing and fostering local investment.
This regulation marks Indonesia’s significant move towards an adaptive, fully digital, and legally certain licensing environment. Businesses must now adapt quickly, ensuring they are fully prepared to navigate the updated OSS system and align their operational practices with the regulation’s stipulations.
Understanding and compliance with PP 28/2025 are crucial. For businesses seeking clarity and smooth navigation through these regulatory changes, consulting professionals specializing in licensing advisory services, such as Permitindo’s Business Licensing Advisory, can significantly streamline the transition. Expert advice ensures businesses not only meet regulatory obligations but also optimize operational efficiency within Indonesia’s dynamic regulatory landscape.