For international investors and Foreign-Owned Companies (PT PMA), obtaining the Business Identification Number (NIB) through the Online Single Submission (OSS) system is a significant achievement. However, compliance under the Risk-Based Approach (RBA) does not end there.
The Indonesian government, through regulations like PP No. 28 of 2025 (governing Business Licensing Supervision), has established a robust monitoring framework to ensure operational integrity. This system aims to create a predictable and safe business environment.
The purpose of the RBA supervision is twofold:
– To Ensure Commitments: To verify that the company is fulfilling the commitments made during the licensing phase (e.g., meeting investment targets, adhering to KBLI codes).
– To Protect the Public Interest: To prevent high-risk operations from harming the environment, consumers, or the local community.
This supervision framework is legally backed by a detailed set of administrative sanctions, primarily outlined in Articles 364 through 388 of the governing regulation.
1. The Core Violation: Article 364 (The Trigger for Sanctions)
Article 364 forms the legal basis for all administrative sanctions within the RBA framework. It clearly establishes the principle:
Article 364 states that any violation of business licensing norms, requirements, or commitments will result in the imposition of administrative sanctions.
This means any lapse—from late LKPM reporting to operating outside your registered KBLI—is legally classified as a violation and can trigger the formal sanction process. The severity of the penalty then depends on the degree of the breach and its risk classification.
2. The Opportunity to Correct: Article 367 (First and Final Warning)
The Indonesian regulatory system is designed to favor correction over immediate punishment. Article 367 outlines the crucial step of the Written Warning (Peringatan Tertulis)—your company’s legal window to rectify non-compliance.
Procedure: When a violation is found, the supervisory body (e.g., BKPM) issues a formal written notification.
The Grace Period: This warning comes with a specific remedial time period (varying based on the issue, often 7 to 30 days) for the business to resolve the non-compliance.
Criticality: The warning is often labelled “First and Final” because failure to achieve full compliance within that strict timeframe automatically triggers the next level of penalty, as per the sequential sanction articles.
3. The Full Spectrum of Penalties: Articles 364–388
If the violation is not resolved after the warning period (Article 367), the supervisory action escalates through the sequence defined in the subsequent articles (leading up to 388). These sanctions include:
– Written Warning (Peringatan Tertulis)
– Imposition of Fines (Denda)
– Temporary Suspension of Business Activities (Pembekuan Kegiatan Usaha): Operations are forced to stop.
– Revocation of Business License (Pencabutan Perizinan Berusaha): The most severe penalty, ending the company’s legal right to operate.
The comprehensive nature of Articles 364–388 serves as a clear indicator of Indonesia’s commitment to post-licensing governance. For PT PMA, compliance is an active, ongoing responsibility. Swift action during the Article 367 warning period is the key differentiator between a temporary administrative snag and a critical operational failure.
Accura Indonesia specializes in RBA compliance monitoring. We help you establish internal controls and implement fast-response mechanisms to address supervisory warnings, ensuring your business never faces the ultimate penalty of license revocation.