The Government of Indonesia has issued Government Regulation No. 28 of 2025 (“GR 28/2025”) as part of its continued efforts to simplify and modernize the business licensing regime. This new regulation replaces Government Regulation No. 5 of 2021 and serves as an enhanced framework for the implementation of risk-based business licensing. GR 28/2025 retains the core principles of the previous regulation but significantly expands the scope of regulated business sectors from sixteen to twenty-two. Among the newly included sectors are the creative economy, geospatial information, legal metrology, cooperatives, investment, and the operation and implementation of electronic systems. All licensing procedures under this expanded framework will be processed electronically and integrated through the Online Single Submission (“OSS”) system.
The enactment of GR 28/2025 requires the government to update the OSS and Indonesia National Single Window (INSW) systems to reflect the new regulatory framework. In parallel, the government has committed to issuing all necessary implementing regulations no later than 5 October 2025. During this transition, business actors must ensure that any previously granted OSS access rights are updated in accordance with notifications that will be sent to the email addresses registered in the system.
GR 28/2025 also sets out transitional provisions. Existing business licenses, permits, and supporting approvals that remain valid and were issued before the new regulation came into force will continue to apply, unless the provisions in GR 28/2025 are deemed more favorable to the license holder. Any applications that were submitted but not yet finalized prior to the new OSS system’s implementation will continue to be processed under the previous regulatory regime. Furthermore, all existing laws and regulations concerning basic requirements and business licensing will remain applicable as long as they do not contradict the provisions of GR 28/2025.
Through this new regulation, the Indonesian government reinforces its commitment to regulatory clarity and investor confidence, creating a more accessible and business-friendly environment.