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Understanding Different Types of Business Licenses in Indonesia

  • InCorp Editorial Team
  • 21 August 2020
  • 3 minute reading time

The laws in Indonesia make it mandatory for a whole range of businesses in the country 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 Cekindo’s guide to understand the different types of business licenses in Indonesia.

Understanding Different Types of Business Licenses in Indonesia

Different 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.

Companies in Indonesia often use one of the three primary licenses including general business license, industrial business license, and construction business license.

Non-primary licenses include commercial and operational licenses and permits. These licenses are required before businesses start their operations based on their business activities.

Licenses that can be Applied via OSS

Three types of licenses that can be applied through OSS are introduced by the Indonesian government to replace and consolidate the previous licenses. This implementation is to integrate and simplify the license-issuing procedures.

  • Business identification number (NIB)
  • Business licenses
  • Operational and commercial licenses

A Step-by-Step Guide to Securing Business Licenses in Indonesia via OSS

The OSS licensing procedure system is relatively straight-forward. Business owners need to first complete their registration with the OSS; then proceed to acquire the Business Identification Number (NIB).

The business license will then be processed upon the acquisition of NIB, and the applicant will afterward receive the business license.

1. 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


2. 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:


  • 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 manpower utilisation
  • Taxpayer identification number
  • Plan of fiscal and customs application



  • Investment type
  • Business registration number or name of the deed of establishment
  • Business line
  • Investment location
  • Planned investment value
  • Plan of manpower utilisation
  • Entity’s contact number
  • Plan of fiscal and customs application
  • Taxpayer identification number
  • Business or person-in-charge’s ID number


Once all required documents have been submitted and proved valid and complete, it takes approximately 14 business days to process the business license.

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

How Cekindo can Assist

Indonesia offers excellent options for running a business and has emerged as one of the fastest-growing economies in the world.

If you are planning to expand your business in the country, then you must be familiar with the process of acquiring a business license in Indonesia. A business license is mandatory to complete your company registration in Indonesia.

Cekindo can provide you with a customised and comprehensive business registration service that fits your budget. We also help you explore the best possibilities of registering a company in Indonesia.

Having years of experience in providing company registration and business consultancy in Indonesia, Cekindo has an impeccable track record with outstanding end-to-end solutions for global businesses.

Talk to us now. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. 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.

Frequent Asked Questions

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.