How to Use the OSS System to Obtain a Business License: A Guide to GR 28/2025
How to Obtain a Business License through the OSS System under GR 28/2025: Step-by-Step Guide
As of 2025, Indonesia has implemented new business licensing regulations — Government Regulation No. 28/2025 (GR 28/2025). This new regulation replaces GR 5/2021 and introduces updated procedures for submitting applications through the Online Single Submission (OSS) system, offering clearer timelines, transparent requirements, and a risk-based approach to licensing.
This article explains how to register a business in Indonesia via OSS, obtain a Business Identification Number (NIB), secure land-use conformity (KKPR), process environmental permits (AMDAL, UKL-UPL, SPPL), and acquire the Primary Business License (PB) for operating in a specific industry.
Source: Official Publication of GR 28/2025 on Peraturan.go.id ---
What Is GR 28/2025 and Why Was It Introduced?
GR 28/2025 aims to modernize Indonesia’s business licensing system by:
- Integrating environmental and spatial planning permits into the OSS digital platform;
- Setting strict application processing timelines with automatic approvals;
- Applying a Risk-Based Approach to each business activity;
- Mandating response time agreements (Service Level Agreements, SLA) from government bodies.
The core objective is to simplify the licensing process, particularly for small and medium-sized enterprises (SMEs), while boosting investor trust — including from foreign entrepreneurs. ---
GR 28/2025: Key Licensing Changes via OSS
1. Defined Deadlines for Permit Processing
According to Article 22(3), if land-use conformity approval (KKPR) is not issued within 20 business days and no formal objections are raised, the application is considered automatically approved. This greatly reduces usual bureaucratic delays.
2. Expanded Entities Eligible for Licensing
GR 28/2025 broadens the list of entities eligible to apply through OSS, including:
- BUMD — Municipal and regional state enterprises;
- Public-Private Partnerships (PPP);
- Startups registered as PT (Perseroan Terbatas) or CV (Commanditaire Vennootschap).
3. Sector-Specific Standardized Requirements
Annex I of GR 28/2025 provides a sectoral requirement matrix, indicating:
- Which documents must be submitted;
- Timeframes for each procedure;
- Which licenses may be granted automatically;
- How to track application status online via OSS.
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Step-by-Step Licensing and Registration via OSS under GR 28/2025
The following steps outline the business licensing process through the Online Single Submission (OSS) system in accordance with GR 28/2025:
Register an OSS Account
- Visit the official OSS website and create an account. You’ll need:
- Tax ID (NPWP for entities);
- Legal form of the business — PT, CV, BUMD, etc.;
- Business activity code (from KBLI) and office address.
Determine the Risk Level of Your Business
- The OSS system classifies business activities into three risk categories, which determine the licensing path:
- Low risk: Only NIB (basic registration) is required;
- Medium risk: Standard Certificates (SS) are required;
- High risk: A Primary Business License (PB) and specific permits are necessary.
Obtain Your Business Identification Number (NIB)
- The NIB is your company’s core identifier in Indonesia. It serves as:
- Tax number (NPWP equivalent);
- Import-export registration number (NIK Bea Cukai);
- Registration with the Jamsostek social insurance system.
Acquire Environmental and Spatial Permits
- If your business is medium or high risk, you’ll need:
- KKPR — Land-use conformity approval;
- AMDAL — For projects with significant environmental impact;
- UKL-UPL — For moderate environmental impact;
- SPPL — For minimal environmental impact.
Obtain the Primary Business License (PB)
- Once all prerequisites and permits are secured, the OSS system issues the PB — the license that allows you to operate legally within your chosen industry (e.g., construction, energy, transport, etc.).
Meet Ongoing Regulatory Obligations
- After receiving your licenses, you must:
- File tax returns (NPWP);
- Maintain accounting and financial records;
- Comply with the license’s terms and industry-specific regulations.
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Penalties and Sanctions for OSS Non-Compliance
GR 28/2025 outlines administrative penalties for violations of license conditions:
- Warning notice — Issued for first-time or minor violations;
- Temporary license suspension — For serious or repeated infractions;
- License revocation — Automatically processed in OSS based on administrative rulings.
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If Your License Was Issued Under GR 5/2021: Do You Need to Reapply?
According to the transitional provisions:
- All licenses granted under GR 5/2021 remain valid;
- If GR 28/2025 offers a simplified process, businesses may choose to convert their license via OSS without penalties.
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Benefits of GR 28/2025 for Foreign Investors and Local Companies
The main advantages of the new business licensing regulation in Indonesia include:
- Faster business registration: up to 20 business days for key documents;
- Full online application process through OSS;
- Minimal local bureaucracy;
- Clear risk assessment rules and transparent requirements;
- Simplified procedures tailored for SMEs;
- OSS system is accessible to foreign companies and startups.
Tip: Before starting the licensing process, it is highly recommended to consult a legal advisor, particularly for activities involving environmental, construction, or other regulated sectors. ---
Summary Table: Licensing Stages via OSS under GR 28/2025
Stage Actions Required Documents
| 1. OSS Registration | Create account and submit data | Tax ID, legal form, KBLI code, address
| 2. Risk Assessment | System automatically classifies business | Automated via OSS
| 3. NIB Issuance | Business registration and identifier | OSS application
| 4. Environmental and Land-Use Permits | Submit AMDAL, UKL-UPL, SPPL, KKPR applications | Environmental studies, maps and plans
| 5. Primary Business License (PB) | Sector-specific operational permit | All prior permits
| 6. Ongoing Compliance | Tax filing and accounting | NPWP documents, reporting records---
Conclusion
GR 28/2025 makes company registration in Indonesia clearer, faster, and fully digital. The OSS system’s one-stop-shop framework and risk-based structure streamline oversight while reducing administrative burden — particularly for startups and SMEs.
For foreign investors, it’s now possible to launch a business in Indonesia remotely, without physically being present in the country during early-stage setup.
Before applying, make sure to:
- Verify your KBLI code and risk level;
- Prepare the necessary environmental and spatial documents if applicable;
- Consult an expert — especially relevant for infrastructure, construction, and manufacturing sectors.
