Top 5 Legal Licenses Your Business Needs in Indonesia (2025 Update)

Top 5 Legal Licenses Every Business in Indonesia Needs

Indonesia continues to improve its investment climate, with the OSS (Online Single Submission) system playing a major role in simplifying business licensing. However, understanding which licenses you need remains crucial for operating legally.

Here are the Top 5 business licenses you need to run a company in Indonesia:

1. NIB (Nomor Induk Berusaha)
Issued through OSS, this is the most essential license. It acts as your company’s main identification, tax ID, and customs access. Without it, you can’t legally operate.

2. Business License (Izin Usaha)
Depending on your business activities, additional licenses like:

• SIUP (General Trading License)

• Izin Industri (Manufacturing Permit)

• Izin Komersial (Commercial License)

3. Sector-Specific Permits
Certain sectors—education, F&B, fintech, health—require special approvals from relevant ministries (e.g., BPOM, OJK, Kemenkes).

4. Location Permit & Environmental Approval
If your business has a physical site (e.g., factory, warehouse), you may need:

• Location Permit

• Environmental License (AMDAL/UKL-UPL)

5. OSS Risk-Based Licensing
Introduced in 2021, businesses are now classified by risk level (Low, Medium, High). Each category determines the documentation and licenses required.

Why Proper Licensing Matters:

• Avoid heavy fines or shutdowns

• Maintain legal credibility with clients and partners

• Enable smooth visa and tax processes

Final Thought:
Licensing in Indonesia isn’t just a box to tick—it’s the legal backbone of your business. With StartIn Indonesia’s support, you can secure the right permits quickly and correctly, so you can focus on running your business with confidence.