Zero Bureaucracy? Inside Indonesia’s Revolution to Guarantee Permit Approval Timelines.

Indonesia’s ambition to become a top-tier investment destination is underpinned by a massive regulatory push to modernize its business environment. This effort has culminated in the issuance of Government Regulation No. 28 of 2025 (GR 28/2025), a landmark policy designed to dismantle bureaucratic complexity and introduce unprecedented certainty to the business licensing process.

GR 28/2025 directly addresses the three core challenges that have historically deterred efficiency and investment: uncertainty in timelines, complexity in procedures, and fragmentation of regulations. This new framework marks a definitive step toward a more transparent, efficient, and standardized licensing ecosystem in the archipelago.

The regulation focuses its improvement efforts across three main, interconnected pillars:

1. Business Licensing Certainty (The End of Ambiguity)

This pillar directly tackles the issue of unpredictable timelines that often plagues permit acquisition. GR 28/2025 institutionalizes predictability through several key measures:

  • Establishment of Service Level Agreement (SLA): This is perhaps the most significant change. The SLA defines concrete, mandatory time limits for essential processes, including Basic Licensing and Business Licensing to Support Business Activities (PB-UMKU). Businesses now have clear expectations, drastically reducing the risk of indefinite delays and arbitrary processing times.
  • Regulation of Time Limits for the Correction Process: The time allowed for applicants to correct errors or submit missing documentation is now standardized. This streamlines the back-and-forth between applicants and regulators, speeding up the overall process.
  • Standardization of Document Inspections: Consistency is key. The regulation ensures that document reviews are conducted uniformly across different regional and sectoral agencies, eliminating subjective interpretations and inconsistent requests.

2. Process Simplification (Efficiency by Design)

GR 28/2025 aims to make the actual application journey straightforward, eliminating redundant steps and complex bureaucratic hurdles:

  • Streamlining the Business Licensing and PB-UMKU Workflows: Clearer, more logical, end-to-end steps are being created for obtaining permits, specifically tailored to improve the experience for Small and Medium Enterprises (SMEs) and large-scale investors alike.
  • Elimination of Layered Procedures and Redundant Requirements: Unnecessary steps and duplicated document submissions, which inflate costs and time, are being systematically removed from the system.
  • Systematic Licensing Stages: By introducing a more logical progression through the required stages, the regulation improves the user experience and significantly enhances overall compliance rates.

3. Regulatory Restructuring (Coherence and Clarity)

The final pillar focuses on creating a cohesive and user-friendly body of rules, moving away from fragmented regulatory clusters:

  • Harmonization of Sector Nomenclature: Standardization of the language and classification used across various economic sectors reduces confusion and ambiguity that often arises from varied terminology used by different government bodies.
  • More Systematic Regulation Consolidation: Scattered regulations are being consolidated into a clearer framework, complete with transparent additions and improvements. This makes it far easier for businesses, especially international entities, to understand and comply with all applicable rules.

Navigating the New Landscape: Your Strategic Partner, Accura

While GR 28/2025 is a revolutionary stride towards efficiency, translating regulatory text into real-world operational compliance can still present nuanced challenges, particularly for firms with complex structures or those navigating the Indonesian market for the first time.

Accura is strategically positioned to serve as your partner in this new regulatory era. We offer bespoke services designed to ensure your business not only complies with the new GR 28/2025 framework but also maximizes the benefits of the simplified system:

  • SLA Compliance Audits: We assess your existing and pending licensing processes against the new SLA timelines, proactively identifying and clearing bottlenecks to accelerate permit acquisition.
  • PB-UMKU Workflow Mapping & Execution: We provide comprehensive, end-to-end guidance to navigate the streamlined PB-UMKU process, ensuring all required documents and procedural steps are executed efficiently, saving you critical time and resources.
  • Regulatory Gap Analysis: For multi-sector businesses, we conduct a detailed analysis to align your standard operating procedures (SOPs) with the newly harmonized nomenclature and restructured regulations, ensuring seamless legal transition.

Accura ensures that the regulatory certainty and process improvements delivered by GR 28/2025 translate directly into operational certainty and reduced time-to-market for your projects in Indonesia.

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