Indonesia’s regulatory landscape is undergoing significant changes with the introduction of Government Regulation No. 28 of 2025 (PP 28/2025). The regulation represents a refinement of the country’s risk-based licensing regime, aiming to make procedures more transparent, predictable, and investor-friendly. For both domestic enterprises and foreign investors, the update clarifies supervisory standards, enhances the Online Single Submission (OSS) ecosystem, and extends the framework to cover six new sectors that previously operated in less certain regulatory territory.
The core feature of PP 28/2025 is its emphasis on categorizing business activities by risk level, which directly determines the type of licensing required. Low-risk activities now only require a Business Identification Number (NIB), while medium-risk activities demand a combination of an NIB and a Standard Certificate. High-risk activities must obtain both an NIB and a formal license. This structured approach provides greater certainty for companies planning their entry into Indonesia, ensuring that expectations are clear from the outset and reducing the ambiguity that once slowed investment decisions.
The regulation’s most notable change is its expansion of the number of recognized business sectors from 16 to 22, with six new areas brought into the fold. The inclusion of creative economy activities such as film, music, and game development acknowledges the role of intellectual property-driven industries in the nation’s growth. Geospatial information services, which include mapping and satellite data processing, are now bound by explicit governance and quality standards, ensuring greater reliability in sectors that inform both commercial and public decision-making. Cooperatives also benefit from standardized procedures, giving them clearer pathways that bring their compliance processes closer to those applied to companies.
Investment services, often caught in a grey zone between general consultancy and regulated financial activity, now enjoy greater clarity under PP 28/2025. Businesses dealing with trade and legal metrology, such as calibration and verification services, gain licensing routes that incorporate technical benchmarks and ongoing supervision. Finally, the inclusion of electronic systems and transaction operations reflects Indonesia’s recognition of the central role digital platforms play in the economy, with e-commerce, fintech, and social media platforms now required to demonstrate operational readiness and cybersecurity compliance. By formalizing these sectors, the regulation signals that the government is seeking not only to encourage innovation but also to ensure accountability in fast-growing fields.
Another important aspect of the regulation is its clarification of the stages of business activity. Companies must now clearly separate the process of starting a business—covering legal requirements, spatial planning approvals, and the submission of licensing applications—from the operational phase, which encompasses infrastructure readiness, human resources, adherence to standards, and eventual commercial rollout. This distinction helps investors and corporate planners map their timelines more accurately, aligning internal project milestones with regulatory expectations.
PP 28/2025 also addresses the supervision of licensed entities more comprehensively. A tiered sanctions system is introduced, ranging from formal warnings and temporary suspensions to financial penalties and the revocation of licenses. Crucially, these sanctions must be enforced through the OSS system, highlighting the need for companies to maintain complete and up-to-date documentation. To support this, the OSS platform has been expanded with new modules covering basic requirements such as environmental approvals, fiscal incentives for investment, and features designed to encourage partnerships between businesses. These additions mark a broader effort to digitize oversight while offering practical tools that can ease compliance for companies that plan their submissions carefully.
The broader significance of PP 28/2025 lies in its dual objectives. On one hand, it reduces uncertainty for investors by offering predictable licensing pathways and clearer definitions of supervisory responsibilities. On the other, it reinforces the government’s intent to maintain discipline through stronger compliance obligations and a centralized system of enforcement. The recognition of sectors like the creative economy and digital platforms underscores Indonesia’s ambition to position itself as a hub for innovation while continuing to regulate activities with the rigor necessary to protect consumers and maintain fair competition.
For businesses considering expansion, these changes present both opportunities and challenges. The framework offers greater clarity than before, but navigating the specifics of licensing remains complex, particularly for foreign investors unfamiliar with Indonesia’s regulatory culture. Many companies are turning to professional advisors with experience in company registration in Indonesia and risk-based licensing to ensure that their market entry is efficient and compliant. Partnering with experts who understand the nuances of both the OSS system and sector-specific requirements can help organizations turn regulatory obligations into a competitive advantage rather than a stumbling block.
Looking ahead, the implementation of PP 28/2025 is expected to increase activity across the newly included sectors. Startups in the creative and digital economies may find the clearer licensing environment attractive, while more traditional industries such as cooperatives and metrology services gain the consistency needed to professionalize their operations. For foreign investors, the regulation signals an ongoing commitment by Indonesia to align its business environment with global expectations of transparency and efficiency. The remaining challenge for regulators will be ensuring that implementation at the local level mirrors the central government’s intent, avoiding the inconsistencies that have historically complicated compliance.
In many ways, PP 28/2025 reflects a balancing act between flexibility and discipline. By reducing bureaucratic hurdles for low-risk sectors while imposing clearer obligations on higher-risk activities, Indonesia is moving toward a more modern licensing framework. For businesses and investors willing to adapt, the regulation not only lowers barriers to entry but also creates a more predictable playing field in one of Southeast Asia’s most dynamic markets.
