Introduction
The Indonesian government, through the Investment Coordinating Board (BKPM), has officially enacted BKPM Regulation No. 5 of 2025 (Perka BKPM 5/2025), effective October 2, 2025.
The regulation introduces updated guidelines for risk-based business licensing and investment facilities through the OSS-RBA (Online Single Submission – Risk-Based Approach) system.
Its main objective is to strengthen legal certainty, streamline procedures, and enhance investment facilitation across Indonesia.
Revocation of Three Previous BKPM Regulations
With the introduction of BKPM Regulation No. 5/2025, three earlier regulations are revoked and declared invalid:
- BKPM Regulation No. 5 of 2021 — Guidelines and Procedures for Risk-Based Business Licensing Supervision;
- BKPM Regulation No. 3 of 2021 — Risk-Based Integrated Electronic Business Licensing System; and
- BKPM Regulation No. 4 of 2021 — Guidelines and Procedures for Risk-Based Business Licensing and Investment Facility Services.
These repealed rules previously governed the early risk-based licensing framework but are now fully replaced by the integrated, modern system under Perka BKPM 5/2025.
Alignment with Government BKPM Regulation No. 28/2025
Perka BKPM 5/2025 acts as an implementing regulation of Government Regulation No. 28 of 2025 (PP 28/2025) on Risk-Based Business Licensing, which replaces PP No. 5 of 2021.
This alignment ensures consistency and legal clarity across ministries and agencies, all operating through the OSS-RBA platform.
It also reinforces the central government’s authority in managing licensing, supervision, and investment facilitation.
Objectives of BKPM Regulation No. 5/2025
The regulation is designed to:
- Provide legal certainty for investors and business entities;
- Simplify and unify procedures for business licensing, modification, renewal, and termination;
- Strengthen compliance monitoring and transparency; and
- Enhance coordination between central and regional authorities.
Through these measures, the government aims to make the investment environment more predictable and transparent, ensuring both domestic and foreign investors can operate efficiently.
Key Improvements
Beyond revoking outdated provisions, BKPM Regulation 5/2025 introduces several key improvements to Indonesia’s risk-based licensing system, including:
- Simplified submission and approval processes for business licenses and investment facilities;
- Clearer rules for modification, renewal, and revocation of licenses;
- Enhanced reporting and monitoring via OSS-RBA; and
- Improved inter-agency coordination to ensure consistency in investment facilitation.
These reforms bring Indonesia’s regulatory structure closer to global best practices, supporting transparency and competitiveness under the post-Omnibus Law framework.
Practical Implications for Businesses
For investors and companies, the new framework means:
- All licensing, renewals, and modifications must go through the OSS-RBA system;
- Documentation and compliance records must follow the updated risk-based format;
- Investors should review internal procedures to align with the new reporting and approval cycles.
Understanding the new structure is essential for maintaining compliance and ensuring a smoother licensing experience under BKPM’s integrated approach.
Conclusion
The enactment of BKPM Regulation No. 5/2025 marks a major step in Indonesia’s regulatory modernization.
By revoking three previous regulations and consolidating the entire licensing framework into a single risk-based system, the government enhances efficiency, accountability, and ease of doing business.
For investors, adapting to the updated OSS-RBA procedures will be critical to achieving long-term compliance and operational success in Indonesia’s evolving investment ecosystem.