Frequently Asked Questions: #specific-licenses-permits-business-activities

Yes, specific licenses and permits are often required for certain business activities in Indonesia. The requirements can vary depending on the nature of the business. Here are some key points to consider:

• Basic Licenses: All companies, regardless of their business activity, need to obtain:

  • Business Identification Number (NIB), issued via the OSS system (this replaced the old company registration certificate, TDP)
  • Tax Identification Number (NPWP)
  • Risk-based business licenses via the OSS Risk-Based Approach (PP 28/2025), depending on the risk level of the business activity

  A separate domicile certificate is no longer a licensing requirement, although a registered office address is still needed as the company’s legal domicile.

• Sector-Specific Licenses: Depending on the industry, additional licenses may be required:

  • Trading companies may need an import license
  • Manufacturing companies often require industrial business licenses
  • Construction companies need construction services business licenses
  • Hotels and restaurants require tourism business licenses
  • Financial services companies need approval from the Financial Services Authority (OJK)

• Environmental Permits: Businesses that may have an environmental impact often need to obtain environmental permits or conduct environmental impact assessments (AMDAL).

• Location-Based Permits: Some regions or special economic zones may have additional licensing requirements.

• Professional Licenses: Certain professions (e.g., lawyers, doctors, architects) may need individual professional licenses in addition to company licenses.

• Online Business Permits: E-commerce businesses may require specific permits related to online transactions and data protection.

• Foreign Investment Considerations: PMA companies may face conditions in a small number of sectors under the Positive Investment List (Presidential Regulation 10/2021, as amended by 49/2021), which replaced the old Negative Investment List — most sectors are now open to 100% foreign ownership by default.

It’s important to note that licensing requirements can change, and it’s advisable to consult with a professional service provider or relevant government agencies to ensure compliance with the most up-to-date regulations for your specific business activity.

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