MCS Consulting Logo
28 November 2025
Government Regulation on the Implementation of Risk-Based Business Licensing

The President of the Republic of Indonesia has issued the Government Regulation concerning the Implementation of Risk-Based Business Licensing (PBBR). PBBR is business licensing that utilizes a risk-based approach obtained from the results of a risk analysis of each business activity.

General Provisions & Definitions

01

Risk-Based Business Licensing (PBBR)

Business licensing using a risk-based approach obtained from the results of a risk analysis of each business activity.

02

Risk

The potential for injury or loss from a hazard or a combination of the probability and consequences of a hazard.

03

Business Licensing (PB)

The legality granted to Business Actors to start and run their business and/or activities.

04

Business Licensing to Support Business Activities (PB UMKU)

The legality granted to Business Actors to support business activities.

05

Central Government

The President of the Republic of Indonesia who holds the governing power of the state of the Republic of Indonesia, assisted by the Vice President and ministers as referred to in the 1945 Constitution of the Republic of Indonesia.

06

Local Government

The regional head as the organizing element of regional government who leads the implementation of governmental affairs within the authority of the autonomous region.

07

Special Economic Zone (KEK)

A Special Economic Zone as regulated in the laws and regulations in the field of special economic zones.

08

Free Trade Zone and Free Port (KPBPB)

A Free Trade Zone and Free Port as regulated in the laws and regulations in the field of free trade zones and free ports.

09

Administrator of the Special Economic Zone (KEK Administrator)

The KEK Administrator as regulated in the laws and regulations in the field of special economic zones.

10

Free Trade Zone and Free Port Authority (KPBPB Authority)

The KPBPB Authority as regulated in the laws and regulations in the field of free trade zones and free ports.

11

Business Actor

An individual or business entity that conducts business and/or activities in a specific field.

12

Business Identification Number (NIB)

Proof of registration of the Business Actor to conduct business activities and serves as their identity in carrying out their business activities.

13

Standard Certificate

A declaration and/or proof of compliance with the standards for implementing business activities.

14

Permit

The approval of the Central Government or Regional Government for the implementation of business activities that must be fulfilled by Business Actors before conducting their business activities.

15

Statement of Commitment for Environmental Management and Monitoring (SPPL)

A statement of commitment as referred to in the laws and regulations in the field of environmental protection and management.

16

Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL)

Management and monitoring efforts as referred to in the laws and regulations in the field of environmental protection and management.

17

Supervision

An effort to ensure the implementation of business activities is in accordance with the standards for implementing business activities carried out through a Risk-based approach and obligations that must be met by Business Actors.

18

Micro and Small Enterprise (UMK)

A Micro Enterprise and Small Enterprise as referred to in the Law concerning Micro, Small, and Medium Enterprises.

19

Micro, Small, and Medium Enterprise (UMK-M)

A Micro, Small, and Medium Enterprise as referred to in the Law concerning Micro, Small, and Medium Enterprises.

20

Indonesian Standard Industrial Classification (KBLI)

The classification code regulated by non-ministerial government institutions that carry out government duties in the field of statistics.

21

Electronically Integrated Business Licensing System (Online Single Submission) or OSS System

An integrated electronic system managed and administered by the OSS institution for the implementation of PBBR.

22

OSS Management and Administering Institution (OSS Institution)

The ministry/body that administers government affairs in the field of investment and government duties in the field of investment coordination.

23

Investment

Investment as regulated in the laws and regulations in the field of investment.

24

Foreign Investment

Foreign Investment as regulated in the laws and regulations in the field of investment.

25

One-Stop Integrated Investment and Licensing Service (DPMPTSP)

A regional apparatus organization of provincial or district/city governments tasked with administering regional government affairs in the field of Investment.

26

Day

A working day in accordance with that determined by the Central Government.

27

Space Utilization Activity Conformity (KKPR)

The suitability between space utilization activity plans and spatial plans.

28

Marine Space Utilization Activity Conformity (KKPRL)

The suitability between space utilization plans and spatial plans for business locations situated at sea.

29

Environmental Approval (PL)

The Environmental Approval as regulated in the laws and regulations in the field of environmental protection and management.

30

Building Approval (PBG)

The Building Approval as regulated in the laws and regulations in the field of building structures.

31

Building Structure

A Building Structure as regulated in the laws and regulations in the field of building structures.

32

Building Function Worthiness Certificate (SLF)

The certificate as regulated in the laws and regulations in the field of building structures.

33

Spatial Plan (RTR)

The Spatial Plan as regulated in the laws and regulations in the field of spatial planning.

34

Detailed Spatial Plan (RDTR)

The Detailed Spatial Plan as regulated in the laws and regulations in the field of spatial planning.

35

Environmental Impact Analysis (Amdal)

The Environmental Impact Analysis as regulated in the laws and regulations in the field of environmental protection and management.

36

Environmental Impact Assessment (Andal)

The Environmental Impact Assessment as regulated in the laws and regulations in the field of environmental protection and management.

37

Environmental Management Plan (RKL)

The Environmental Management Plan as regulated in the laws and regulations in the field of environmental protection and management.

38

Environmental Monitoring Plan (RPL)

The Environmental Monitoring Plan as regulated in the laws and regulations in the field of environmental protection and management.

39

Environmental Feasibility Test Team

The team as regulated in the laws and regulations in the field of environmental protection and management.

40

Non-Tax State Revenue (PNBP)

Non-Tax State Revenue as regulated in the laws and regulations in the field of non-tax state revenue.

Published by MCS Consulting Media Team