Securing necessary permits for your company in Indonesia requires adherence to the country's regulatory framework. Indonesia has specific requirements and procedures for various types of businesses. Though we provide you with some lists so you can get the general overview, it's important to note that specific requirements may vary based on your business activities and location. It's advisable to consult with legal and business professionals familiar with Indonesian regulations for accurate and up-to-date information.
After getting the letter of decree from the Ministry of Law and Human Rights and the tax ID from the tax office. Here are some common permits and licenses required to operate a company in Indonesia:
Business Identification Number (Nomor Induk Berusaha/NIB)
The NIB is a mandatory identification number for all businesses operating in Indonesia. It integrates several licenses and permits into a single system. To obtain an NIB, you need to register your business with the Online Single Submission (OSS) system from the Ministry of Investment. The Ministry has made some changes and updates to the OSS system and it is now called OSS RBA, whereby business activities are categories based on the risk level.
Risk Level | Basic | Additional Permit/ License |
Low | NIB | - |
Medium - Low | NIB + Standard Certificate | Platform registration with related Ministry may be required |
Medium - High | NIB + Standard Certificate (status: ineffective) | Additional registration process with related ministry is required to make the Standard Certificate effective |
High | NIB | Registration and permit from related ministry |
You probably have read or will read somewhere about Izin Usaha (business license) issued by the OSS system, which can be called in different names according to the business activity such as SIUP, IUI, IUJK, IUJPT, IUP and so on . These documents are only available from the previous version of the OSS system. With the current OSS RBA system, these documents are no longer issued by the OSS system. The OSS RBA system facilitates as a one door system to all ministries in Indonesia, where any additional permits/ licenses will be requested through the OSS system and you will have to provide all the necessary and required documents by the ministry and process directly with the ministry or local government when necessary.
Environmental Permits
Companies engaged in activities that may have an environmental impact must comply with environmental regulations. Obtaining environmental permits and assessments from the Ministry of Environment and Forestry (Kementerian Lingkungan Hidup dan Kehutanan) or its regional offices is necessary.
SIUPMSE (Surat Izin Usaha Perdagangan Melalui Sistem Elektronik)
this is a permit from the Ministry of Trade required for any business actor running its business on an online platform with commercial transactional activity. Meaning, if you are conducting an e-commerce business your company will have to process this additional license to operate. However, please note that this license is required if you are providing services or sell products on your own platform that also facilitates a payment gateway. If you are selling your products on a market place then you are classified under a different business activity.
Intellectual Property Rights (Hak Atas Kekayaan Intelektual/ HAKI)
Depending on your business, you may need to secure trademarks, patents, or copyrights to protect your intellectual property. The Directorate General of Intellectual Property is responsible for registering and issuing these rights.
Company Domicile Letter (Surat Keterangan Domisili Perusahaan/SKDP)
This letter certifies the legal address of your company. Though this document is rarely needed since the OSS RBA system is issued, some ministries or local government still insist on having this document as part of the documents required and submitted. Should you need this, you can obtain an SKDP from the local subdistrict office where your company is located. Else, sometimes SKDG (Surat Keterangan Domisili Gedung) / SKTU (Surat Keterangan Tempat Usaha) is also accepted. SKDG can be obtained by requesting the building management or the coworking office to issue this letter.
Employment Permits
If you plan to hire foreign employees, you'll need to obtain appropriate work permits (IMTA) and stay permits (KITAS) from the Ministry of Manpower (Kementerian Ketenagakerjaan) and the Directorate General of Immigration (Direktorat Jenderal Imigrasi).
It's important to note that this is not an exhaustive list, and additional permits may be required based on your industry and business activities. The OSS system has simplified the process by integrating many permits, but guidance from local experts is still crucial. It's recommended to consult with professionals or relevant government agencies to ensure compliance with all necessary regulations. Contact our consultants today for more information.
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