Jakarta, October 2025 — The Indonesian government has officially issued new regulations aimed at improving transparency and efficiency in business licensing through the Online Single Submission (OSS) system. The new policy, which came into effect this month, is expected to simplify licensing procedures and enhance legal certainty for both local and foreign investors.
According to the Ministry of Investment (BKPM), the regulation introduces several key updates, including digital verification for company documents, streamlined risk-based assessment processes, and tighter supervision over business permits in high-risk sectors such as finance, telecommunications, and energy.
“The goal is to ensure that every business operating in Indonesia complies with legal and environmental standards while encouraging responsible investment,” said a BKPM representative during a press briefing in Jakarta.
Implications for Business Owners
With these changes, companies are required to ensure that all legal documents — including corporate establishment deeds, shareholder information, and operational permits — are accurately registered and updated within the OSS system.
Failure to comply may result in administrative penalties, temporary suspension, or revocation of business permits.
Law experts emphasize that the new regulation could also reduce gray areas in licensing practices, making it easier for companies to track approval status and maintain compliance.
Legal Perspective
From a legal standpoint, firms providing compliance and corporate advisory services see this policy as a positive step toward greater regulatory transparency.
It encourages businesses to adopt more structured legal documentation and to consult legal professionals when preparing or revising licensing materials.
“This reform reflects the government’s intent to balance ease of doing business with stronger legal accountability,” said a senior legal advisor from a Jakarta-based law firm.
What Companies Should Do Next
Businesses are advised to:
- Review existing licenses and update them under the new OSS framework.
- Conduct internal compliance checks to ensure all operational activities align with current regulations.
- Seek professional legal assistance to interpret the new requirements and anticipate potential changes in related sectors.
Conclusion
The implementation of this regulation marks another milestone in Indonesia’s effort to build a transparent and law-abiding business environment.
As the government continues to reform its regulatory ecosystem, companies that stay proactive and compliant will gain a strategic advantage — both legally and operationally.