Business owners in Indonesia, whether launching a new company or formalising an existing operation, will encounter a requirement to obtain a Nomor Induk Berusaha (“NIB”), or Business Identification Number, early in the process. Issued through the Online Single Submission (“OSS”) system, the NIB functions as the official business identification instrument within Indonesia’s risk based business licensing framework. Understanding how to obtain an NIB, and how to register an NIB through OSS, is usually the first practical step for entrepreneurs, MSMEs, startups, and foreign investors seeking to operate lawfully in the country. Many business owners still treat the NIB as the finish line of business registration rather than its starting point, a misunderstanding that can create compliance gaps later on.
What Is an NIB and Why Does It Matter?
The NIB is issued under Government Regulation No. 28 of 2025 concerning Risk Based Business Licensing (“PP 28/2025”), which replaced the earlier Government Regulation No. 5 of 2021. PP 28/2025 confirms that Indonesia’s business licensing structure now operates through OSS RBA, the Risk Based Approach applied across the OSS system, meaning the type and complexity of licensing requirements applicable to a business, beyond the NIB itself, PP 28/2025 confirms that Indonesia’s business licensing structure now operates through OSS RBA, the Risk Based Approach applied across the OSS system. Under this framework, the type and complexity of licensing requirements applicable to a business, beyond the NIB itself, depend on the risk classification assigned to its activities. OSS RBA organizes this classification into four tiers rather than a simple low-to-high scale. The tiers run from low risk, through medium-low risk and medium-high risk, up to high risk.
For low risk activities, the NIB itself constitutes the applicable Business Licensing (“PB”), the general legal permission required to start and run a business. For medium-low risk activities, the business submits a self-declaration and receives an automatically issued standard certificate. For medium-high risk activities, that standard certificate must be verified by the relevant technical agency before it takes legal effect. For high risk activities, the business must obtain a specific license following a full technical evaluation. Across every tier above low risk, the NIB remains a precondition for further licensing but is not sufficient by itself, and the compliance burden rises sharply from medium-low to high risk.
PP 28/2025 sets the general framework for this system. The operational detail sits in a separate instrument, Peraturan Menteri Investasi or Kepala BKPM No. 5 Tahun 2025 (“Permen BKPM 5/2025”), which governs the specific licensing procedures, the requirements for supplementary permits known as PB UMKU, and the mechanisms for supervision, revocation, and administrative sanctions. A business operating under OSS RBA will encounter Permen BKPM 5/2025 more directly than PP 28/2025 in day to day compliance, since the ministerial regulation fills in the procedural steps that the government regulation leaves at a general level.
How to Obtain an NIB Through OSS
Accessing the OSS System
Registering for an NIB begins with accessing the OSS system and creating or logging into an account linked to the business entity or individual business owner.
Entering Business Information
Applicants then enter the required company or personal data, select the relevant business activity using the applicable classification codes, and provide supporting information about the location, scale, and nature of the business.
Issuance of the NIB
Once this information passes the applicable checks under the risk-based business licensing regime, the system issues the NIB together with any documentation tied to that risk category.
Businesses seeking NIB for business registration purposes, whether a limited liability company, a cooperative, a sole proprietorship, or a foreign investment vehicle, generally follow this same OSS RBA structure, though the specific data required can differ according to entity type and planned commercial activity. For business owners exploring how to get NIB in Indonesia for the first time, the process is designed to be completed without a physical office visit, though the underlying obligation to describe the business activity accurately remains unchanged.
Because OSS RBA validates the declared business activity against its assigned risk level, the accuracy of the information submitted at this stage carries lasting significance. An NIB obtained on the basis of an inaccurate business activity description can result in a licensing status that does not correspond to what the business actually does, an inconsistency that often only becomes apparent during a later audit, contract negotiation, or licensing review.
Having an NIB confirms that a business holds a registered identity within Indonesia’s business licensing system, but it does not automatically mean every applicable regulatory requirement has been satisfied.
What Does an NIB Actually Allow a Business to Do?
The scope of what an NIB allows a business to do is tied directly to the risk classification assigned to its declared activity. A business operating in a low risk category may find that the NIB alone functions as sufficient legal permission to begin operations. A business in a medium or high risk category will typically need further approvals, whether environmental, health, safety, or sector specific, before it can lawfully commence or continue operating.
A business classified as low risk, such as a small trading or services activity, may find its licensing obligations complete once the NIB is issued.
A business classified as medium or high risk, such as one involving manufacturing, food production, or an activity with an environmental or safety dimension, will typically still need to secure separate approvals, for example environmental compliance documents or building standard certifications, before it can lawfully operate.
Business owners who confirm their risk classification early, rather than assuming the NIB alone is sufficient, are better positioned to identify what further licensing their specific activity requires and to avoid administrative sanctions or operational disruption later.
