In the modern landscape of Indonesia’s economy, the concept of a single “permit” to run a company is effectively extinct. Foreign investors arriving in Bali often believe that securing their NIB (Business Identification Number) is the final hurdle, only to face sudden operational shutdowns or audit notices. The reality of 2026 is that the NIB is merely the foundation of a complex, multi-layered structure governed by the Online Single Submission Risk-Based Approach (OSS RBA).
This misconception that “NIB is enough” poses a significant threat to business continuity. Under the rigorous enforcement of Government Regulation (PP) 28/2025, authorities now monitor a continuous stream of compliance data. Missing a critical environmental approval or a sector-specific technical permit—categorized as “other” business licenses—can trigger a cascade of sanctions, from administrative fines to the complete revocation of your right to operate. The days of flying under the radar with incomplete paperwork are over.
To navigate this, investors must understand the full “stack” of permissions required for their specific activity. This guide breaks down the essential layers beyond the NIB: from “Basic Requirements” like spatial planning (KKPR) and environmental approvals (AMDAL/UKL-UPL) to the specific “Supporting Business Licenses” (PB UMKU) needed for sectors like tourism, food, and technology. By mastering this hierarchy, you can ensure your venture in Indonesia is built on solid legal ground, safe from the scrutiny of the Ministry of Investment/BKPM.
Table of Contents
- Legal Backbone: PP 28/2025 and Licensing Layers
- Basic Requirements: The Invisible Foundation
- Core Risk-Based Licenses: NIB and Standard Certificates
- Supporting Business Licenses (PB UMKU) Explained
- Real Story: The "Unlicensed" Spa in Canggu
- Step-by-Step: Integrating Licenses in OSS RBA
- Fees, Timelines, and Parallel Processing
- Key Risks and Common Compliance Mistakes
- FAQ's about Other Business Licenses
Legal Backbone: PP 28/2025 and Licensing Layers
The regulatory framework for business licenses has undergone a massive overhaul with the introduction of Government Regulation (PP) 28/2025. This regulation replaces earlier versions and serves as the definitive rulebook for Penyelenggaraan Perizinan Berusaha Berbasis Risiko (Risk-Based Business Licensing). It expands the scope of the OSS RBA to cover 22 distinct sectors, including emerging industries like the creative economy and digital systems, ensuring that no modern business activity falls outside the system’s purview.
PP 28/2025 separates licensing into three distinct buckets: Basic Requirements (Persyaratan Dasar), the Core Business License (Perizinan Berusaha or PB), and Supporting Business Licenses (PB UMKU). This separation is critical because it mandates a sequence of compliance. You cannot simply jump to the final operational permit without first satisfying the foundational requirements. Furthermore, the regulation introduces a mechanism for centralized sanctions, meaning a violation in one layer—such as a building permit issue—can freeze your entire business operation in the OSS system.
Basic Requirements: The Invisible Foundation
Before you can obtain any operational business licenses, you must satisfy the “Basic Requirements.” These are often invisible to the novice investor but are the most common cause of project failure. The first is Spatial Utilization Suitability (KKPR). This digital confirmation verifies that your specific business activity is allowed in the proposed location’s zoning plan. If your villa project sits in a “Green Zone,” the OSS will block your licensing journey immediately.
The second pillar is Environmental Approval. Depending on the scale and impact of your business, you will need an SPPL (statement of undertaking), UKL-UPL (management effort), or a full AMDAL (impact assessment). These are now processed directly via the OSS. The final pillar is the Building Approval (PBG) and Certificate of Proper Function (SLF). In 2026, you cannot legally occupy a commercial space without an SLF that matches your business purpose. Running a factory in a building permitted for a warehouse is a direct violation of these basic requirements.
Core Risk-Based Licenses: NIB and Standard Certificates
Once the basic requirements are met, you move to the core “Business License” (PB) layer. This is where the risk-based logic of the OSS RBA applies. For every business, the NIB acts as the identity and base license. However, for most foreign-owned companies (PT PMA) in Bali, the NIB is just the start.
For Medium-Risk activities—such as opening a retail shop or a small consultancy—you need a Standard Certificate (Sertifikat Standar). In Medium-Low risk cases, this is a self-declaration. But for Medium-High risk activities, like construction or many hospitality services, this certificate must be verified by the relevant government agency. For High-Risk sectors like mining or large-scale tourism, you require a full Izin Usaha (Commercial License). This top-tier license is only issued after rigorous technical assessments, meaning your business licenses are not complete until you hold this final, validated document.
Supporting Business Licenses (PB UMKU) Explained
Beyond the core license lies the vast territory of “Supporting Business Licenses” (PB UMKU). These are sector-specific permits required to operate safely and legally. They are “supporting” not because they are optional, but because they support the main activity. For a hotel, the core license allows the business to exist, but the PB UMKU allows it to serve alcohol (SKPL), operate a pool, or run a spa.
Examples of these “other” business licenses are everywhere. A food manufacturer needs a BPOM registration number for every SKU product. A digital startup needs a PSE registration from Kominfo. A clinic needs SIP permits for its doctors. Under PP 28/2025, all these PB UMKU must be linked and visible within your OSS profile. Managing this portfolio of permits is essential; missing just one can lead to targeted sanctions against that specific revenue stream.
Real Story: The "Unlicensed" Spa in Canggu
Meet Anya, a 32-year-old wellness entrepreneur from Germany. In early 2026, Anya opened “Zenith Glow,” a boutique medical spa in the heart of Canggu. She had diligently registered her PT PMA via OSS and obtained her NIB and a verified Standard Certificate for “Beauty Clinic Services.” Business was booming, with bookings filled weeks in advance by expats seeking laser treatments and vitamin drips.
However, during a routine health department inspection in March, officers asked her PB UMKU for the specific laser equipment and the medical waste disposal permit. Anya was confused; she thought her core clinic license covered everything. The officers explained that high-energy devices require separate technical approvals under the “Supporting Business Licenses” framework. The hum of the air conditioning seemed to vanish, replaced by the heavy silence of a potential shutdown order.
Facing the closure of her treatment rooms, Anya contacted a trusted tax management company to conduct a rapid compliance audit. They identified the missing technical permits and helped her fast-track the applications through the Ministry of Health’s integrated portal. “I built a clinic,” Anya reflected later, “but I almost lost it because I didn’t treat the machines as a separate legal responsibility. In Indonesia, every detail needs its own paper.”
Step-by-Step: Integrating Licenses in OSS RBA
Successfully securing your full stack of business licenses requires a strategic workflow in the OSS RBA.
- Entity & NIB: Establish your PT PMA and obtain your NIB. This unlocks your access to the system.
- Parallel Basics: Immediately apply for your KKPR (zoning) and Environmental Approvals (SPPL/UKL-UPL). PP 28/2025 allows these to be processed in parallel to save time.
- Core License: Submit your Standard Certificate or Izin Usaha application. If your risk level requires verification, upload your technical documents (like building plans) here.
- PB UMKU Identification: Identify every supporting activity—from selling alcohol to operating a generator—and apply for the specific PB UMKU in the system.
- Final Validation: Only start full commercial operations once all these indicators in the OSS dashboard turn green (Verified/Approved).
Fees, Timelines, and Parallel Processing
The OSS platform itself remains free of charge. However, the ecosystem of “other” business licenses comes with costs. Each specific permit—whether an environmental assessment or a BPOM product registration—carries official government fees known as Non-Tax State Revenue (PNBP). These fees vary widely by sector and scale, so budgeting must go beyond simple incorporation costs.
Timelines have improved under the new regime. PP 28/2025 explicitly mandates “Service Level Agreements” (SLAs) for government agencies. If an agency fails to verify a license within the set time, the system may issue an automatic approval. However, relying on this “fictitious positive” is risky. Parallel processing is your best tool for speed: working on your environmental documents while your building permit is under review can shave months off your launch timeline.
Key Risks and Common Compliance Mistakes
The most dangerous pitfall is the “Wrong Sequencing” error. Many investors rush to open their doors as soon as they have an NIB, ignoring the requirement to fulfill commitments like the SLF (Certificate of Proper Function). Operating a commercial venue without an SLF is a primary target for local enforcement (Satpol PP), leading to sealing of premises.
Another major risk involves “Scope Creep.” A business might start as a simple cafe (Restaurant License) but then add a retail corner selling imported wine. Without adding the specific Trading KBLI and the Alcohol Retail PB UMKU, this expansion is illegal. Under the continuous supervision model of PP 28/2025, authorities can see these discrepancies during annual audits. Failing to update your OSS profile to match your evolving business reality is the fastest way to invite sanctions.
FAQ's about Other Business Licenses
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Is the NIB enough for a digital marketing agency?
Usually, yes. Most consultancy activities are Low Risk, meaning the NIB serves as the full commercial license. However, always check if you need specific technical certifications.
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What is the difference between PB and PB UMKU?
The PB (Business License) allows you to exist as a business type (e.g., a hotel). The PB UMKU (Supporting License) allows you to perform specific activities within that business (e.g., the hotel spa or bar).
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Can I process Environmental Approvals later?
No. Environmental approval is a "Basic Requirement." It must be settled before your core business license can be fully verified and effective.
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How do I know which PB UMKU I need?
The OSS system should suggest them based on your KBLI. However, consulting a sector-specific legal guide is safer, as the system is not always comprehensive.
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Do I need a building permit (PBG) for a rented office?
The building owner should have the PBG. However, as the tenant business, you must ensure the PBG matches your activity (e.g., office use) to get your own operational license.
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What happens if I operate without a PB UMKU?
You face administrative sanctions ranging from written warnings to the freezing of your core business license (NIB) until compliance is met.
