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Peraturan Pemerintah 28/2025Regulation
Full titlePeraturan Pemerintah Nomor 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko
CitationPP 28/2025
JurisdictionIndonesia
Enacted byPresident of Indonesia
Signed5 June 2025
Promulgated5 June 2025
Effective5 June 2025
ImplementsUU 6/2023
ReplacesPP 5/2021

Peraturan Pemerintah 28/2025 (Peraturan Pemerintah Nomor 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko) is an Indonesian government regulation on the administration of risk-based business licensing. It was signed by the President and promulgated in Jakarta on 5 June 2025, and took effect on promulgation.[1][2] Issued under Undang-Undang 6/2023, the statute that enacted the Job Creation regulation in lieu of law, it revoked and replaced Peraturan Pemerintah 5/2021 on the same subject.[3][4]

The regulation governs the electronic Online Single Submission (OSS) system through which business licences are issued. A business actor must hold a business licence (Perizinan Berusaha, PB), and that licence is obtained only after the basic requirements (persyaratan dasar) have been met: conformity with spatial planning (KKPR), environmental approval (Persetujuan Lingkungan, PL), and the building approval together with the certificate of functional worthiness (PBG and SLF).[5][6] The type of licence then depends on the risk level assigned to the activity, from a business identification number alone for low-risk activities to a full permit for high-risk ones.[7]

Because environmental approval and the building approval must be held before a building is constructed, the regulation is the licensing layer of the framework described at septic tank regulation in Indonesia, and it carries the licensing and supervision provisions for drinking water supply systems within the public works sector.[8][9][10] Its closing chapters keep licences issued under the old regulation in force, set a four-month deadline for implementing rules and for adjusting the OSS system, and route applications still pending to the old procedure until the system is ready.[11][12]

Background

The preamble records that risk-based licensing had been introduced by PP 5/2021 as an implementing regulation of Undang-Undang 11/2020 on Job Creation, that it needed refining to give business actors greater legal certainty on business processes and on the quality of services, and that the entry into force of UU 6/2023 required PP 5/2021 to be replaced. Its legal bases are Pasal 5 ayat (2) of the Constitution and UU 6/2023.[3:1]

Pasal 2 sets the scope of the regulation in ten matters: basic requirements, business licences, licences supporting business activities (PB UMKU), norms, standards, procedures and criteria, OSS services, supervision, evaluation and policy reform, funding, the resolution of problems and obstacles, and sanctions. The body of the regulation follows that order in fourteen chapters and 552 articles.[13][1:1] Pasal 5 applies it to fifteen sectors, among them public works and housing, health, energy and mineral resources and forestry, and to seven further sectors that include the environment.[14]

Basic requirements

Pasal 4 establishes the sequence on which the regulation rests. A business actor must hold a PB; the PB is obtained after the basic requirements have first been met, unless the regulation provides otherwise; where the activity needs a supporting licence, a PB UMKU must also be held; and all of them are processed electronically through the OSS system.[5:1] Pasal 12 lists the basic requirements as KKPR, PL, and PBG with SLF, issued according to the location of the activity by the OSS agency, by that agency on behalf of a minister, or by the provincial or district investment and one-stop service office on behalf of the governor, regent or mayor. In special economic zones and free-trade zones the zone administrator issues them instead.[6:1]

The regulation divides a business into a stage of starting and a stage of running it. The preparatory part of running a business includes land acquisition, obtaining the environmental approval for activities that require an environmental impact assessment (Amdal) or the lighter UKL-UPL, and obtaining the PBG for a building. Land acquisition may proceed in parallel with those approvals, but a business actor that will construct a building must hold both the PL and the PBG.[8:1]

Environmental approval

Under Pasal 78 every business or activity with an important or unimportant impact on the environment must hold a PL, granted on the basis of an Amdal, a UKL-UPL or an SPPL (a statement of commitment to manage and monitor the environment). The approval takes the form of an environmental feasibility decree, a statement of capacity to manage the environment, or the SPPL itself, according to the document required, and is applied for and issued through the OSS system.[15] These procedures connect the licensing system to the wider regime of environmental approval in Indonesia.

For activities requiring an Amdal or UKL-UPL, a technical approval is an administrative condition of the application. It covers compliance with wastewater quality standards, emission standards, the management of hazardous and toxic waste, and traffic impact. Where the central government has set a technical standard, the technical approval is issued automatically through the environmental information system; where a technical study is needed instead, approval for wastewater and emission standards must be given within thirty working days of a complete application.[16]

Building approval and certificate of functional worthiness

A PBG and an SLF are required of a business actor that needs to construct a building as its place of business. The PBG must be held before construction begins and is processed through a planning consultation, which is free of charge, followed by issuance; the SLF must be obtained before the building may be used.[17][18] An existing building that was built without a building permit before the regulation took effect needs no PBG, and its owner may apply directly for an SLF when applying for or renewing a business licence.[19]

Risk-based licensing

Pasal 124 bases each business licence on the risk level and business-scale rating of the activity, determined by a risk analysis that must be transparent, accountable and precautionary. The central government carries out the analysis by identifying the activity under the Indonesian standard industrial classification (KBLI) and its scale, assessing the level of hazard to health, safety, the environment and the use of resources, and assessing the likelihood of harm on a four-point scale from "almost impossible" to "almost certain".[20]

The result places the activity in one of four risk levels: low, medium-low, medium-high or high.[7:1] For a low-risk activity the licence is the business identification number (Nomor Induk Berusaha, NIB), which Pasal 1 defines as the proof of a business actor's registration and its identity in conducting business.[21] A medium-low-risk activity receives an NIB and a standard certificate (Sertifikat Standar) issued on the business actor's own statement that it will meet the business standard. A medium-high-risk activity receives an NIB and an unverified certificate that allows preparation only; operation begins once the certificate has been verified. A high-risk activity receives an NIB and a permit (izin), and may use the NIB only for preparation until the permit is issued.[7:2]

Water supply and sanitation

Business licensing in the public works and housing sector covers construction services, water resources, roads, human settlements (cipta karya) and housing development.[9:1] The regulation provides for supervision of licences to operate a drinking water supply system (sistem penyediaan air minum), and a holder that breaches its licence may be warned in writing, have its activity suspended, or have the licence frozen or revoked.[10:1][22] These provisions place the regulation within drinking water supply regulation in Indonesia.

The quality and technology standards for domestic wastewater are set by Permen LH 11/2025, which requires its desludging and grease-separation obligations to be written into the environmental approval or the SPPL.[23] Under this regulation, a business that will construct a building must hold that environmental approval, together with the PBG, before construction.[8:2]

Supervision and sanctions

Supervision of risk-based licensing is carried out by the central government, regional governments and zone administrators according to their authority. It aims to ensure compliance with the basic requirements and licences, to gather evidence of harm to safety, health or the environment, and to monitor investment obligations, and it takes the form of routine supervision, through business reports and field inspections, and incidental supervision.[24]

The regulation sanctions officials as well as businesses. A minister, governor, regent, mayor or zone administrator who does not administer licensing through the OSS system receives up to two written warnings, after which the OSS agency, the sectoral minister or the governor takes over the licensing authority concerned.[25] A business actor that breaches its basic requirements or licences faces administrative sanctions ranging from a warning, temporary suspension and administrative fines to police enforcement and the revocation of its licences, applied according to the level of compliance found in supervision.[26]

Transition

Applications still in process are handled under PP 5/2021 until the adjusted OSS system is in operation. Licences already issued, verified or approved remain in force, and the new provisions apply to their holders only where they are more favourable to the business actor; licences issued under different names are read according to the new nomenclature.[11:1] Pasal 550 keeps other licensing provisions in force so far as they do not conflict with the regulation and revokes PP 5/2021, and Pasal 551 requires implementing regulations to be issued, and the OSS system and the Indonesia National Single Window to be adjusted, within four months of promulgation.[4:1][12:1]

See also

Part of a series on Environmental approval in Indonesia
Extended producer responsibility in Indonesia · Merkuri · Permen ESDM 8/2026 · Permenkes 9/2026 · Permen LH 1/2010 · Permen LH 19/2008 · Permen LH 22/2025 · Permen LH 3/2009 · Permen LH 6/2026 · Permen LHK 14/2024 · Permen LHK 15/2019 · Permen LHK 26/2020 · Permen LHK 6/2021 · Permen PUPR 3/2023 · PP 22/2021 · PP 23/2024 · PP 26/2025 · PP 28/2025 · PP 46/2017 · PP 5/2021 · Perpres 3/2016 · Septic tank regulation in Indonesia · UU 32/2009 · UU 6/2023
Identifiers Know ID K258 · Work URI /akn/id/act/pp/2025/28 · RegVault PP_28_2025
Categories Government regulations of Indonesia · Public administration of Indonesia · Environmental law of Indonesia
What links here (23)

References

  1. [P] PP 28/2025, Pasal 552 (entry into force on promulgation) and closing formula (Ditetapkan di Jakarta pada tanggal 5 Juni 2025 by President Prabowo Subianto; Diundangkan di Jakarta pada tanggal 5 Juni 2025; Lembaran Negara 2025 No. 98). regulation_id PP_28_2025. ↩︎ ↩︎

  2. [P] PP No. 28 Tahun 2025, JDIH BPK: enacted, promulgated and in force 5 June 2025; LN 2025 (98), TLN (7115). https://peraturan.bpk.go.id/Details/319773/pp-no-28-tahun-2025 ↩︎

  3. [P] PP 28/2025, preamble, Menimbang huruf a to c and Mengingat (Pasal 5 ayat (2) UUD 1945; UU 6/2023, LN 2023 No. 41, TLN 6856). regulation_id PP_28_2025. ↩︎ ↩︎

  4. [P] PP 28/2025, Pasal 550 huruf a and b, revoking PP No. 5 Tahun 2021 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko (LN 2021 No. 15, TLN 6617). regulation_id PP_28_2025. ↩︎ ↩︎

  5. [P] PP 28/2025, Pasal 4 ayat (1) to (5). regulation_id PP_28_2025. ↩︎ ↩︎

  6. [P] PP 28/2025, Pasal 12 ayat (1) to (4): "Persyaratan dasar sebagaimana dimaksud dalam Pasal 4 ayat (2) meliputi: a. KKPR; b. PL; dan c. PBG dan SLF." regulation_id PP_28_2025. ↩︎ ↩︎

  7. [P] PP 28/2025, Pasal 128 ayat (1) and (2), Pasal 130, Pasal 131 ayat (1) and (2), Pasal 132 ayat (1) to (6) and Pasal 133 ayat (1) to (4). regulation_id PP_28_2025. ↩︎ ↩︎ ↩︎

  8. [P] PP 28/2025, Pasal 9 ayat (2), Pasal 10 ayat (1) and Pasal 11 ayat (1) to (3) ("wajib memiliki persyaratan dasar dalam bentuk PL dan PBG"). regulation_id PP_28_2025. ↩︎ ↩︎ ↩︎

  9. [P] PP 28/2025, Pasal 158 ayat (1). regulation_id PP_28_2025. ↩︎ ↩︎

  10. [P] PP 28/2025, Pasal 287. regulation_id PP_28_2025. ↩︎ ↩︎

  11. [P] PP 28/2025, Pasal 547 huruf a and Pasal 549 huruf a and b. regulation_id PP_28_2025. ↩︎ ↩︎

  12. [P] PP 28/2025, Pasal 551 huruf a to c. regulation_id PP_28_2025. ↩︎ ↩︎

  13. [P] PP 28/2025, Pasal 2 ayat (1) and (2). regulation_id PP_28_2025. ↩︎

  14. [P] PP 28/2025, Pasal 5 ayat (1) and (2). regulation_id PP_28_2025. ↩︎

  15. [P] PP 28/2025, Pasal 78 ayat (1) to (5). regulation_id PP_28_2025. ↩︎

  16. [P] PP 28/2025, Pasal 80 ayat (1) and (2), Pasal 82 and Pasal 83 ayat (1) huruf a. regulation_id PP_28_2025. ↩︎

  17. [P] PP 28/2025, Pasal 106, Pasal 108 ayat (1) to (3) and Pasal 109 ayat (2). regulation_id PP_28_2025. ↩︎

  18. [P] PP 28/2025, Pasal 122 ayat (1): "SLF harus diperoleh oleh Pelaku Usaha sebelum Bangunan Gedung dapat dimanfaatkan." regulation_id PP_28_2025. ↩︎

  19. [P] PP 28/2025, Pasal 123 ayat (1) and (2). regulation_id PP_28_2025. ↩︎

  20. [P] PP 28/2025, Pasal 124 ayat (1) to (4), Pasal 126 ayat (1) and Pasal 127 ayat (1), (3) and (6). regulation_id PP_28_2025. ↩︎

  21. [P] PP 28/2025, Pasal 1 angka 12 (NIB) and angka 30 to 32 (PBG, building, SLF, defined by reference to the building legislation). regulation_id PP_28_2025. ↩︎

  22. [P] PP 28/2025, Pasal 443 ayat (1). regulation_id PP_28_2025. ↩︎

  23. [P] Peraturan Menteri Lingkungan Hidup/Badan Pengendalian Lingkungan Hidup No. 11 Tahun 2025 tentang Baku Mutu Air Limbah dan Standar Teknologi Pengolahan Air Limbah untuk Air Limbah Domestik, Pasal 3, Pasal 7, Pasal 8 and Pasal 9 ayat (1). regulation_id PERMENKLHBPH_11_2025. https://peraturan.bpk.go.id/Details/345620/permen-lhbplh-no-11-tahun-2025 ↩︎

  24. [P] PP 28/2025, Pasal 238 ayat (1) to (3), Pasal 239 and Pasal 240 ayat (1) and (2). regulation_id PP_28_2025. ↩︎

  25. [P] PP 28/2025, Pasal 353 ayat (1) to (3). regulation_id PP_28_2025. ↩︎

  26. [P] PP 28/2025, Pasal 355 ayat (1) to (3). regulation_id PP_28_2025. ↩︎