The Government of Indonesia has officially socialized Government Regulation (GR) No. 28 of 2025 as part of its continued regulatory reform agenda. This regulation reinforces the implementation of Risk-Based Business Licensing, aiming to establish a more efficient, adaptive, and proportionate licensing system based on the level of business risk.

Background of GR No. 28 of 2025

Historically, Indonesia’s business licensing framework was perceived as complex and time-consuming, particularly for micro, small, and medium enterprises (MSMEs). GR No. 28 of 2025 was enacted to streamline licensing procedures by aligning regulatory requirements with the actual risk profile of business activities.

Core Principles of Risk-Based Business Licensing

  • Risk assessment based on impact on health, safety, the environment, and resource utilization
  • Differentiation of licensing obligations for low-, medium-, and high-risk business activities
  • Strengthened post-licensing supervision rather than extensive upfront administrative checks

Implications for Business Actors

Under this regulation, low-risk business activities are generally required only to obtain a Business Identification Number (NIB), while medium- and high-risk businesses must comply with additional standards, certifications, or permits.

Conclusion

Government Regulation No. 28 of 2025 represents a significant milestone in Indonesia’s business regulatory landscape. A clear understanding of risk classification is essential for business actors to fully benefit from the simplified licensing framework.

Official information is available at: https://www.oss.go.id