Indonesia

Indonesia

Introduced Risk Based Business Licensing

01 Apr 2021

On 1 April 2021, Indonesia issued Government Regulation 5 of 2021 to introduce a risk-based approach to the issuance of business licenses. Business activities will be assessed on the scale of the hazards they can potentially create (low risk, medium-low risk, medium-high risk, and high risk). To determine the risk level, the Government will conduct a risk analysis of each application. The lower the business risk, the simpler the business licensing requirements will be. The risk-based business licensing procedure will impact 16 sectors, including defense, energy, and agriculture.

Nature of measure:
  • Facilitation
Type:
  • Entry and establishment (Approval and admission - other)
Industry:
  • Primary (Agriculture, forestry and fishing, Mining and quarrying)
  • Manufacturing (Manufacture of food products, beverages and tobacco products)
  • Services (Electricity, gas, steam and air conditioning supply, Wholesale and retail trade, Transportation and storage, Publishing, audiovisual and broadcasting activities, Telecommunications, Public administration and defence; compulsory social security, Education, Human health activities, Other service activities)
Inward FDI:
No
Outward FDI:
No
Sources: