Business Licenses in Indonesia 2026: Complete Overview
Indonesia has streamlined business licensing through the OSS (Online Single Submission) system, but understanding what you need can still be complex. If you are planning to set up in Bali specifically, our guide on the Bali business climate in 2026 covers the unique regulatory layers that apply on top of the national framework.
Licensing Framework
Since the Job Creation Law (Omnibus Law), Indonesia uses the OSS RBA (Risk-Based Approach) system:
- All businesses register through OSS
- Receive NIB (Nomor Induk Berusaha)
- Risk level determines further requirements
- Sectoral licenses integrated into OSS
License Categories
What Licenses Do You Need?
What is your business activity?
Core Business Licenses
Essential Business Licenses
Licenses most businesses need
| Feature | NIB Business Identification Number | SIUP Trading Business License | TDP Company Registration | NPWP Tax Identification |
|---|---|---|---|---|
| Required | All businesses | Trading companies | All PT/CV | All businesses |
| Issued By | OSS system | OSS (via NIB) | OSS (via NIB) | Tax Office |
| Cost | Free | Free | Free | Free |
| Validity | Permanent | Per NIB | Per NIB | Permanent |
Risk-Based Licensing
Risk Classification
| Risk Level | Requirements | Examples |
|---|---|---|
| Low | NIB only | Small retail, basic services |
| Medium-Low | NIB + Standard Certificate | Some trading, consultancy |
| Medium-High | NIB + Standard Certificate | Food service, manufacturing |
| High | NIB + Permit + Inspection | Large industry, hazardous |
How Risk is Determined
Factors include:
- Business sector (KBLI code)
- Scale of operations
- Environmental impact
- Public health/safety risk
- Investment value
Sectoral Licenses
Common Sectoral Permits
Sectoral License Examples
Industry-specific requirements
trade
tourism
health
manufacturing
construction
financial
License by Business Type
Trading/Import Business
| License | Purpose |
|---|---|
| NIB | Base registration |
| API-U | General importer |
| API-P | Producer importer |
| IT (Import Approval) | Specific product approval |
| LS (Verification) | Certain commodities |
Restaurant/Cafe
| License | Purpose |
|---|---|
| NIB | Base registration |
| TDUP | Tourism business license |
| Health certificate | Food safety |
| BPOM (if processing) | Packaged food |
| Halal (recommended) | Muslim customers |
Manufacturing
| License | Purpose |
|---|---|
| NIB | Base registration |
| IUI | Industrial license |
| Environmental permit | AMDAL/UKL-UPL |
| Location permit | Land use approval |
| Building permit | IMB/PBG |
| Operational permit | Final approval |
Environmental Licenses
Most businesses need environmental approval:
Low Impact (SPPL)
- Small retail/office
- Simple declaration
Medium Impact (UKL-UPL)
- Medium businesses
- Environmental management plan
High Impact (AMDAL)
- Large projects
- Full environmental impact study
- Public consultation required
Location & Building
Property-Related Permits
| Permit | Purpose | When Needed |
|---|---|---|
| Location Permit | Land use approval | Acquiring land |
| IMB/PBG | Building permit | Construction |
| SLF | Building occupancy | Operating building |
| HO (if applicable) | Nuisance permit | Some localities |
License Costs
Typical Costs
| License | Government Fee | Agent Fee |
|---|---|---|
| NIB | Free | IDR 2-5M |
| NPWP | Free | IDR 1-2M |
| Environmental (SPPL) | Free-minimal | IDR 3-5M |
| Environmental (UKL-UPL) | IDR 5-20M | IDR 20-50M |
| Sectoral (varies) | Varies | IDR 5-20M |
Compliance After Licensing
Ongoing Compliance
Requirements after obtaining licenses
reporting
tax
administrative
environmental
Common Mistakes
- Operating without NIB - Required even for small businesses
- Wrong KBLI codes - Must match actual activities
- Missing sectoral permits - Check industry requirements
- Ignoring environmental - Can't operate without approval
- Not reporting LKPM - Investment reporting is mandatory
- Expired permits - Monitor expiry dates
Common Questions
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