Home Blog Understanding Different Types of Business Licenses in Indonesia Business Licenses | Business Setup | Indonesia Understanding Different Types of Business Licenses in Indonesia InCorp Editorial Team 9 April 2025 6 minutes reading time Table of Contents What is a Business License? When Do You Need a Business License? Types of Business Licenses in Indonesia Licenses That Can Be Applied via OSS How to Get Business Licenses in Indonesia via OSS Licenses That Cannot Be Secured via OSS Obtain a Business License in Indonesia with InCorp Why Choose InCorp Indonesia for Your Business? The laws in Indonesia require a wide range of businesses to acquire a business license before they can be legally established and operated. Some businesses may also obtain a more specific license, such as a commercial license to sell alcohol. Follow InCorp’s guide to understand the different types of business licenses in Indonesia. What is a Business License? A business license is an official document authorizing you to operate a business legally. The specific requirements for obtaining a permit depend on the nature of your company’s business activities or intellectual property. In Indonesia, acquiring the necessary business licenses is compulsory for all business entities, from small and medium enterprises to large corporations. Operating without a license puts your business at risk of being shut down by government authorities. When Do You Need a Business License? You must obtain a business license if your business operates within a regulated industry or involves significant liability. The government mandates licensing for businesses that require oversight due to the nature of their activities, ensuring compliance with industry standards and legal obligations. Business License Indonesia Validity The validity of a business license in Indonesia varies depending on the type of license issued. Some licenses, such as the General Business License (NIB), remain valid indefinitely as long as the business complies with regulatory requirements. However, other specialized licenses may require renewal, typically 1 to 5 years after a certain period. Businesses must monitor expiration dates and ensure timely renewals to avoid penalties or operational disruptions. Types of Business Licenses in Indonesia There are primary and non-primary business licenses in Indonesia. Primary licenses are the most widely used business licenses. A sample of common business licenses in Indonesia includes: Primary Business License Companies in Indonesia often use one of the three primary licenses, which include a general business license, an industrial business license, or a construction business license. General Business License (NIB) The General Business License, NIB (Nomor Induk Berusaha), is a flexible license covering a broad spectrum of general business activities. The NIB is the essential license whether your business involves trading, consulting, or providing services. It serves as a foundation for many companies, streamlining the licensing process. Industrial Business License (IUI) The Industrial Business License (IUI) is crucial for manufacturing businesses. If your company produces goods or processes materials, this license ensures that your operations meet safety and quality standards. Construction Business License (SBU) Companies in the construction industry must obtain a Construction Business License (SBU). This license is required for businesses involved in building, infrastructure development, and related activities, ensuring that projects comply with regulations and safety guidelines. Non-Primary Business License Non-primary licenses include commercial and operational licenses and permits. Based on their business activities, these licenses are required before businesses start operating. Restaurant License A Restaurant License is essential if your business sells food and beverages. This license ensures that your establishment meets hygiene standards and complies with other regulations, safeguarding the health and safety of your customers. Hotel License A hotel license is crucial for those entering the hospitality industry. This license applies to businesses offering accommodation services and covers key aspects such as safety, hygiene, and guest comfort. Transportation License A transportation business involving taxis, buses, or trucks requires a Transportation License. This license ensures the safety of passengers, proper vehicle maintenance, and compliance with transportation laws. READ MORE:Permanent Business License and Permit: What You Need to Know About ItApplication for IUI and Expansion Licenses is Now Integrated into OSS System Licenses That Can Be Applied via OSS The Indonesian government introduced three types of licenses that can be applied through OSS to replace and consolidate the previous licenses. This implementation integrates and simplifies the license-issuing procedures. Business identification number (NIB) Business licenses Operational and commercial licenses How to Get Business Licenses in Indonesia via OSS The OSS licensing procedure system is relatively straightforward. Business owners must complete their registration with the OSS and acquire the Business Identification Number (NIB). Once the business license Indonesia requirements are met and the NIB is obtained, the business license will be processed, and the applicant will receive it shortly after. Access the OSS System You can start the OSS registration by preparing the following for application submission: Applicant’s name Identity card number or passport number Registration number of the deed of establishment for private companies Establishment’s legal basis for public companies Apply and Obtain an NIB Then, the applicant (as an individual or non-individual) shall proceed to provide the following information to get the NIB: Individuals Applicant’s name Identity card number or passport number Business line or category Business address Investment location Planned investment value Business contact number Plan of workforce utilization Taxpayer identification number Plan of fiscal and customs application Non-individuals Investment type Business registration number or name of the deed of establishment Business line Investment location Planned investment value Plan of workforce utilization Entity’s contact number Plan of fiscal and customs application Taxpayer identification number ID number of the business or person in charge Once all required documents have been submitted, proven valid, and complete, the business license is processed in approximately 14 business days. READ MORE:Securing an Import License via OSS in IndonesiaGuide For Obtaining Restaurant License in Indonesia: 2024 Update Licenses That Cannot Be Secured via OSS BKPM is still in charge of licensing processes of several sectors in Indonesia that cannot be done through OSS. The sectors with licenses that cannot be secured through OSS include the following: Electricity sector Mineral and coal sector Oil and gas sector Public housing and public work sector Custom and taxation Capital investment Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Subscribe Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Obtain a Business License in Indonesia with InCorp Indonesia offers excellent business opportunities and has emerged as one of the fastest-growing economies in the world. If you plan to expand your business in Indonesia, you must be familiar with acquiring a business license. At InCorp Indonesia, we offer comprehensive services and tailored solutions to meet your needs. Company Registration: We handle all aspects of company registration Business License: Our expertise ensures a smooth process for obtaining essential business licenses Why Choose InCorp Indonesia for Your Business? Tailored Solutions Expert Guidance Efficient Processes Proven Track Record Ready to take the next step? Fill out the form below to schedule a consultation and discover how InCorp can elevate your business in Indonesia. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. Is there limited responsibility for shareholders in a PMA company? In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors. Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends? Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met. What is the Indonesian employment status in PMA company? In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment. Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses How Reducing Your Carbon Footprint Can Drive Business Growth Read more Doing Business in Indonesia: Identifying the Market Challenges Read more Trends of Coworking Space in Indonesia in 2020 Read more