The Government issued Government Regulation No. 5 of 2021 concerning the implementation of Risk-Based Business Licensing (“GR 5/2021″) on the 2nd February 2021. This regulation replaces Government Regulation No. 24 of 2018 concerning the Electronic Integrated Business Licensing Services. The main consideration in the issuance of GR 5/2021 is the adjustment of licensing provisions stipulated in the Law Number 11 of 2020 of the Job Creation Act.
Risk Based Business Licensing
To establish and conduct business activities in Indonesia, Business Actors must meet a Basic Requirement of Business Licensing; and /or a Risk-Based Business Licensing. Businesses that are affected by the implementation of Risk-Based Business Licensing include:
A risk level determination and business scale rating is obtained based on a hazard level assessment and the potential of occurrence of hazards. Based on the hazard level assessment, and hazard potential assessment, risk level, and business scale rating of business activities, business activities are classified into:
Risk level assessment as referred to above, based on hazard level assessment, hazard potential assessment, Risk level, and business scale rating of business activities.
The Business Licensing Applicant consists of:
GR 5/2021 stipulates that Risk-Based Business Licensing is conducted electronically and integrated through the OSS System which are processed electronically through https://oss.go.id by filling the data as stipulated under GR 5/2021. The Business Activities Licensing Subsystem covers the different stages of the Business Licensing issuance process:
Business Actors must obtain an NIB which is an identity for Business Actors as proof of registration or application of Business Actors to conduct business activities. NIB also functions as:
 Article 6 (2) GR 5/2021
 Article 10 of (1) GR 5/2021
 Article 170 GR 5/2021
 Certificate Standard Is Statement and/Or Evidence Fulfillment Standard Implementation Activities Business
 lzin Is Approval Government Center Or Government Area To Implementation Activities Business that is Mandatory and Filled By Promoters of a Business Before they Implement a Business Activity.