Government Regulation Number 28 of 2025 (PP 28/2025) - English Version.

REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA NUMBER 28 OF 2025 CONCERNING THE ORGANIZATION OF RISK-BASED BUSINESS LICENSING

BY THE GRACE OF GOD ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering: 

a. that simplifying Business Licensing through the implementation of Risk-Based Business Licensing requires continuous policy reform to facilitate the initiation and operation of businesses to support job creation; 

b. that simplifying Business Licensing through the implementation of Risk-Based Business Licensing as regulated in Government Regulation Number 5 of 2021 on the Organization of Risk-Based Business Licensing, which is the implementing regulation of Law Number 11 of 2020 on Job Creation, must be improved to further provide legal certainty to business actors, especially regarding business processes and service quality guarantees; 

c. that with the enactment of Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law, Government Regulation Number 5 of 2021 on the Organization of Risk-Based Business Licensing must be replaced; 

d. that based on the considerations referred to in letter a, letter b, and letter c, it is deemed necessary to establish a Government Regulation on Risk-Based Business Licensing;

Observing:

1. Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia;

2. Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law (State Gazette of the Republic of Indonesia of 2023 Number 41, Supplement to the State Gazette of the Republic of Indonesia Number 6856);

HAS DECIDED: 

To establish: 

REGULATION OF THE GOVERNMENT ON THE ORGANIZATION OF RISK-BASED BUSINESS LICENSING.

CHAPTER I GENERAL PROVISIONS

Article 1 Under this Government Regulation, the following definitions apply:

1. Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko), hereinafter referred to as PBBR, is business licensing that uses a risk-based approach derived from the risk analysis of each business activity.

2. Risk is the potential for injury or loss from a hazard or a combination of the probability and consequences of a hazard.

3. Business Licensing (Perizinan Berusaha), hereinafter referred to as PB, is the legal authorization granted to a Business Actor to start and operate their businesses and/or activities.

4. Business Licensing to Support Business Activities (Perizinan Berusaha Untuk Menunjang Kegiatan Usaha), hereinafter referred to as PB UMKU, is the legal authorization granted to a Business Actor to support business activities.

5. Central Government is the President of the Republic of Indonesia who holds the administrative power of the state of the Republic of Indonesia, assisted by the Vice President and ministers as referred to in the 1945 Constitution of the Republic of Indonesia.

6. Regional Government is the head of a region as an organizing element of a regional administration who leads the implementation of government affairs that fall under the authority of an autonomous region.

7. Special Economic Zone (Kawasan Ekonomi Khusus), hereinafter referred to as KEK, is a Special Economic Zone as regulated under the laws and regulations in the special economic zone sector.

8. Free Trade Zone and Free Port (Kawasan Perdagangan Bebas dan Pelabuhan Bebas), hereinafter referred to as KPBPB, is a Free Trade Zone and Free Port as regulated under the laws and regulations in the free trade zone and free port sector.

9. Special Economic Zone Administrator, hereinafter referred to as KEK Administrator, is the KEK Administrator as regulated under the laws and regulations in the special economic zone sector.

10. Free Trade Zone and Free Port Concession Board (Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas), hereinafter referred to as KPBPB Concession Board, is the KPBPB Concession Board as regulated under the laws and regulations in the free trade zone and free port sector.

11. Business Actor is an individual or a business entity that engages in business and/or activities in certain sectors.

12. Business Identification Number (Nomor Induk Berusaha), hereinafter referred to as NIB, is the proof of registration of a Business Actor to carry out business activities and serves as an identity for the Business Actor in carrying out their business activities.

13. Standard Certificate is a statement and/or evidence of the fulfillment of standards for the implementation of business activities.

14. Permit is an approval from the Central Government or Regional Government for the implementation of business activities that must be fulfilled by a Business Actor before carrying out their business activities.

15. Statement of Capability for Environmental Management and Monitoring (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup), hereinafter referred to as SPPL, is the Statement of Capability for Environmental Management and Monitoring as referred to in the laws and regulations in the environmental protection and management sector.

16. Environmental Management Efforts and Environmental Monitoring Efforts (Upaya Pengelolaan Lingkungan – Upaya Pemantauan Lingkungan), hereinafter referred to as UKL-UPL, are the Environmental Management Efforts and Environmental Monitoring Efforts as referred to in the laws and regulations in the environmental protection and management sector.

17. Supervision is an effort to ensure that the implementation of business activities is in accordance with the standards for the implementation of business activities carried out through a risk-based approach and the obligations that must be fulfilled by a Business Actor.

18. Micro- and Small-Scale Enterprises (Usaha Mikro dan Kecil), hereinafter referred to as UMK, are Micro- and Small-scale Enterprises as referred to in the Law on Micro, Small, and Medium Enterprises.

19. Micro, Small, and Medium Enterprises (Usaha Mikro, Kecil, dan Menengah), hereinafter referred to as UMK-M, are Micro, Small, and Medium Enterprises as referred to in the Law on Micro, Small, and Medium Enterprises.

20. Standard Classification of Indonesian Business Fields (Klasifikasi Baku Lapangan Usaha Indonesia), hereinafter referred to as KBLI, is a classification code regulated by a non-ministerial government agency that implements government duties in the statistics sector.

21. Electronically Integrated Business Licensing System (Online Single Submission), hereinafter referred to as the OSS System, is an electronically integrated system managed and organized by the OSS Agency for the organization of PBBR.

22. OSS Management and Organizing Agency, hereinafter referred to as the OSS Agency, is the ministry/agency that organizes government affairs in the investment sector and governmental duties in the investment coordination sector.

23. Investment is Investment as regulated under the laws and regulations in the investment sector.

24. Foreign Investment is Foreign Investment as regulated under the laws and regulations in the investment sector.

25. One-Stop Integrated Services and Investment Office (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu), hereinafter referred to as DPMPTSP, is a regional apparatus organization of a provincial government or regency/city government that has the task of carrying out regional government affairs in the Investment sector.

26. Days are business days as determined by the Central Government.

27. Spatial Utilization Activity Suitability (Kesesuaian Kegiatan Pemanfaatan Ruang), hereinafter referred to as KKPR, is the conformity between the spatial utilization activities plan and the spatial planning.

28. Marine Spatial Utilization Activity Suitability (Kesesuaian Kegiatan Pemanfaatan Ruang Laut), hereinafter referred to as KKPRL, is the conformity between the spatial utilization activities plan and the spatial planning where the business location is in the sea.

29. Environmental Approval (Persetujuan Lingkungan), hereinafter referred to as PL, is the Environmental Approval as regulated under the laws and regulations in the environmental protection and management sector.

30. Building Approval (Persetujuan Bangunan Gedung), hereinafter referred to as PBG, is the Building Approval as regulated under the laws and regulations in the building construction sector.

31. Building is the Building as regulated under the laws and regulations in the building construction sector.

32. Certificate of Feasibility for Building Function (Sertifikat Laik Fungsi Bangunan Gedung), hereinafter referred to as SLF, is the Certificate of Feasibility for Building Function as regulated under the laws and regulations in the building construction sector.

33. Spatial Plan (Rencana Tata Ruang), hereinafter referred to as RTR, is the Spatial Plan as regulated under the laws and regulations in the spatial planning sector.

34. Detailed Spatial Plan (Rencana Detail Tata Ruang), hereinafter referred to as RDTR, is the Detailed Spatial Plan as regulated under the laws and regulations in the spatial plan sector.

35. Environmental Impact Analysis (Analisis Mengenai Dampak Lingkungan Hidup), hereinafter referred to as Amdal, is the Environmental Impact Analysis as regulated under the laws and regulations in the environmental protection and management sector.

36. Environmental Impact Assessment (Analisis Dampak Lingkungan Hidup), hereinafter referred to as Andal, is the Environmental Impact Assessment as regulated under the laws and regulations in the environmental protection and management sector.

37. Environmental Management Plan (Rencana Pengelolaan Lingkungan Hidup), hereinafter referred to as RKL, is the Environmental Management Plan as regulated under the laws and regulations in the environmental protection and management sector.

38. Environmental Monitoring Plan (Rencana Pemantauan Lingkungan Hidup), hereinafter referred to as RPL, is the Environmental Monitoring Plan as regulated under the laws and regulations in the environmental protection and management sector.

39. Environmental Feasibility Test Team is the Environmental Feasibility Test Team as regulated under the laws and regulations in the environmental protection and management sector.

40. Non-Tax State Revenue (Penerimaan Negara Bukan Pajak), hereinafter referred to as PNBP, is Non-Tax State Revenue as regulated under the laws and regulations in the non-tax state revenue sector.

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