Commercial and Operational Licenses in Indonesia: Secure Compliance for Your Business

In Indonesia, businesses require specific commercial and operational licenses to legally conduct activities within the country. Obtaining these licenses is essential for regulatory compliance and smooth operational processes. Each industry has unique licensing requirements, and navigating the process can be complex without the right expertise. Our Indonesian Commercial/Operational Licensing Services provide comprehensive support, ensuring that your business meets all necessary regulatory standards efficiently and accurately.

Examples of various sectors that must apply for commercial and operational licenses

1. Energy and Mineral Resources Sector- e.g of mining business license (IUP)
2. Industrial Sector- e.g Industrial activity mobility license
3. Defense and Security- e.g Security Service Business Entity Operational Permit (SIO BUJK)
4. Public Works Sector- e.g Construction service business license
5. Trade Sector- e.g Export or import approval (PE-PI) for special goods
6. Tourism and Creative Economy- e.g Tourism business license
7. Transportation- e.g Transportation Management Service Business License (SIUJPT) for goods
8. Communication and Informatics Sector- e.g Frequency permission
9. Financial Sector- e.g Financial Services Authority Regulation (POJK)
10. Labor Sector- e.g Worker Service Provider Operational Permit
11. Education Sector- e.g Operational license for the implementation of education

12. Health Sector- e.g Medical device distributor license and/or medical device production license

Sector-Specific Licensing Requirements

1. Energy & Mineral Resources

• IUP (Mining Business License)
  • Types: IUP Exploration (3-8 years), IUP Production (20+ years)
  • Requirements: Environmental clearance (AMDAL), reclamation bond
• Electricity Supply License (IUPTL)
  • Classes: 1-4 based on capacity
  • Processing: 6-12 months via ESDM Ministry

2. Industrial Sector

• Industrial Business License (IUI)
  • NKV/NKU classification (100% foreign vs. joint venture)
  • Mandatory TKDN (local content) verification
• Industrial Mobility License (IMB Industri)
  • Factory construction permits
  • Hazardous material storage clearance

3. Defense & Security

• BUJK License (Security Services)
  • 30% local ownership requirement
  • MOHA background checks
• Strategic Industry Certification
  • Restricted for foreign investment

4. Construction Services

• Construction Business License (SBUJPTL)
  • Grades: K1-K7 based on project value
  • ASEAN engineer certification requirements

5. Trade Sector

License Type	Authority	Validity
API (Import License)	Trade Ministry	5 years
NIK (Commercial ID)	OSS System	Permanent
P3B (Export Approval)	BKIPM	Per shipment

6. Tourism & Creative Economy

• Tourism Business License (SIUPA)
  • Star classification (1-5)
  • Cultural sensitivity training
• Film Production Permit
  • Local content quotas
  • Shooting location clearances

7. Transportation

• SIUJPT (Freight Forwarding)
  • Minimum fleet requirements
  • Customs bond guarantee
• Aircraft Operation Certificate (AOC)
  • DGCA safety audits
  • 51% national ownership rule

8. Communication & IT

• Frequency Spectrum License
  • 2.3GHz-5.8GHz band allocation
  • BRTI technical compliance
• PSE Registration (Electronic Systems)
  • Data localization requirements
  • 24/7 incident response

9. Financial Services

• POJK Licenses
  • Banking: Commercial vs. BPR
  • Fintech: Payment system tiers
  • Insurance: Risk-based capital
• OJK Fit & Proper Test
  • Director/commissioner approval

10. Manpower Services

• P3K License (Labor Outsourcing)
  • 3:1 local-to-foreign ratio
  • BPJS Ketenagakerjaan verification
• Expatriate Work Permit (IMTA)
  • DNI test (local unavailability)

11. Education

• Operational License (Izin Operasional)
  • Curriculum accreditation
  • Facility standards compliance
• International School Permit
  • 80% foreign student maximum

12. Healthcare

• Medical Device Distribution
  • BPOM product registration
  • Cold chain certification
• Clinic Operation License
  • Doctor-patient ratio
  • Emergency equipment audit

License Processing Framework

1. OSS-RBA Integration

• Single Submission Number (NIB)
• Risk-Based Approach classification
• Automatic sectoral license triggers

2. Typical Processing Timeline

License Type	Duration	Governing Law
Basic NIB	1-3 days	UU 11/2020
Sectoral License	14-90 days	PP 5/2021
Strategic Industry	6-18 months	Perpres 10/2021

3. Compliance Maintenance

• Annual reporting obligations
• License renewal protocols
• Change of control notifications

Why Professional Licensing Services?

Regulatory Challenges

⚠ Multi-Agency Coordination: Average 7 different approvals
⚠ Document Complexity: 300+ page technical dossiers
⚠ Hidden Requirements: Regional vs. national discrepancies

Our Differentiated Approach

Pre-Submission Audit: 98% first-time approval rate
Government Liaison: Direct KLHK/MOI/BPOM access
Compliance Calendar: Automated renewal alerts
Sector Specialists: 12 industry-focused teams