Obtaining a business license in Indonesia is a critical step for entrepreneurs looking to operate in one of Southeast Asia’s most dynamic markets. The process has been modernized through the Risk-Based Approach (RBA), part of reforms under Indonesia’s Omnibus Law, which simplifies licensing based on activity risk levels.
What is Risk-Based Business Licensing?
The risk-based business license system categorizes businesses into low, medium, and high-risk groups, each requiring varying levels of compliance:
- Low-risk businesses need only a Business Identification Number (NIB RBA Indonesia) for operation.
- Medium-risk businesses must obtain an NIB and a Standard Certificate, ensuring adherence to industry-specific standards.
- High-risk businesses require an NIB and additional operational permits, such as environmental or safety licenses.
This approach, managed through the Online Single Submission (OSS) system, aims to reduce bureaucracy and foster a business-friendly environment. The OSS system centralizes these processes, integrating various regulatory requirements into a unified platform. This approach also reduces bureaucratic delays and ensures that businesses of all types comply efficiently with Indonesia’s regulatory standards. However, understanding the nuances of this system, especially for high-risk industries, can be challenging without expert guidance.
Regulatory Foundations
The RBA aligns with broader reforms under Indonesia’s Law No. 11 of 2020 on Job Creation (Omnibus Law), aimed at improving the ease of doing business. Key provisions include:
- Simplifying investment approvals for specific sectors.
- Mandating environmental and social compliance for high-risk enterprises.
- Ensuring businesses adhere to labor laws and corporate governance standards
How Andalan Consulting Can Assist
As a trusted Indonesia business license consultant, Andalan Consulting offers tailored services to help businesses navigate the licensing and compliance landscape:
- End-to-End Licensing Support: From OSS registration to obtaining the necessary permits.
- Risk Assessment: Identifying the risk level of your business and recommending required licenses.
- Legal Advisory: Ensuring full compliance with Indonesian laws, including tax, labor, and environmental regulations.
- Ongoing Compliance Management: Handling license renewals and regulatory updates to ensure uninterrupted operations.
With a deep understanding of Indonesia’s business law and extensive experience in corporate services, Andalan Consulting ensures a smooth licensing process. Their tailored approach minimizes delays and ensures compliance, allowing businesses to focus on growth.
Get Started with Andalan Consulting
Whether you’re launching a new venture or expanding an existing one, Andalan Consulting provides comprehensive support for obtaining a business license in Indonesia and ensuring compliance under the NIB RBA Indonesia system. Visit Andalan Consulting to learn more and start your compliance journey today.