In Indonesia, business activities, legal business entities, and company operations are tightly regulated under a framework that ensures business certainty, consumer protection, and compliance. From establishing a PT PMA (foreign-owned company) to obtaining operational approvals through Online Single Submission (OSS), navigating the country’s licensing environment requires clarity and careful planning.
For digital entrepreneurs, tech founders, e-commerce operators, and online service providers, the requirement is even more critical, particularly with the government’s growing emphasis on Penyelenggara Sistem Elektronik (PSE) registration and sector-specific operational permits.
This article provides a comprehensive guide to the types of business licenses required in Indonesia, how they apply to online and tech-based companies, and the step-by-step process to stay compliant under Indonesian corporate regulations.
What Is a Business License?
A business license in Indonesia is an official permit issued by the government that allows a company to conduct legally recognised commercial activities. Under the current regulatory framework, primarily managed through the OSS Risk-Based Licensing System (OSS-RBA). Business licenses serve as proof that a company:
- Operates within a legal business sector
- Meets risk-based standards and compliance obligations
- Is authorised to conduct commercial and operational activities
In essence, your Business Licenses in Indonesia may include:
- NIB (Business Identification Number)
- Standard Certificates (Sertifikat Standar) for dedicated business activities
- Commercial/Operational Licenses
- Sector-Specific Permits (e.g., PSE registration for online businesses)
Without the correct licenses, companies risk administrative sanctions, operational suspension, and potential financial penalties.
Mandatory Business License Types to Start a Business in Indonesia
To operate legally, every company, local or foreign-invested, must secure several foundational permits. These apply to all business sectors, including e-commerce and tech-based enterprises.
1. NIB (Nomor Induk Berusaha) – Business Identification Number
The NIB is the core business license issued through OSS-RBA. It functions as:
- Company’s official registration number
- Importer identification (if applicable)
- Customs access (if applicable)
- Required number for tax and operational reporting
The NIB is mandatory for all business entities, including PT, PT PMA, CV, and foundations conducting commercial activities.
2. Standard Certificate (Sertifikat Standar)
Depending on the risk level of the company’s business classification (KBLI), a Standard Certificate may be required. This certificate ensures that the company complies with technical, safety, and operational standards.
3. Commercial/Operational License
Higher-risk activities require additional operational permits. These ensure that companies meet sector-specific regulations before carrying out key business functions.
4. Sector-Specific Permits
Certain industries require additional licensing. For digital and tech businesses, the most notable requirement is PSE (Penyelenggara Sistem Elektronik) Registration.
Types of Business Licenses & Permits You May Need for an Online Business, Tech Company, or E-Commerce Platform
Digital businesses continue to expand in Indonesia, supported by millions of active e-commerce users and one of Southeast Asia’s strongest online markets. However, online-based companies face unique compliance requirements.
Below are the essential permits and licenses:
1. PSE Registration (Private Scope)
PSE (Penyelenggara Sistem Elektronik) registration is mandatory for any business that manages, collects, processes, or stores electronic data. This type of Business license is issued by KOMDIGI (the Ministry of Communication and Digital Affairs in Indonesia), which includes permission specifically for the following Business operations:
- E-commerce platforms
- Digital marketplaces
- SaaS platforms
- Fintech apps
- Social platforms
- Online booking systems
- Cloud service providers
- Content-sharing websites
- Digital advertising platforms
Both foreign and domestic companies operating digitally in Indonesia must register as PSE Lingkup Privat.
2. E-Commerce Business License (KBLI 47911, 63122, 70209, etc.)
An e-commerce license or Surat Izin Usaha Perdagangan Melalui Sistem Elektronik (SIUPMSE) refers to the trade business license for companies conducting the buying or selling of goods and services through electronic systems. This license falls under the authority of the Ministry of Trade. The types of it may vary depending on the business model, as you may need specific KBLI classifications:
- Marketplace operators
- Online retailers
- Dropshipping platforms
- Digital intermediaries
Each KBLI classification comes with corresponding licensing and standard requirements.
You may also like: Guide to PSE Registration and Its Importance for Online Business in Indonesia
3. Data Centre & Cloud Licensing (if applicable)
Businesses managing cloud servers or data centres may require additional telecom and digital infrastructure permits under Kominfo regulations.
4. Payment System Licensing (for Fintech)
Fintech companies handling payments, lending, and e-wallet services must obtain licenses from Bank Indonesia or OJK, depending on the model.
5. Commercial/Operational Licenses for Tech Services
Some tech companies require post-NIB licensing, depending on their risk level and service categories.
6. Import Licensing (if selling imported goods)
E-commerce platforms relying on cross-border transactions may require import-related permits.
How to Obtain a Business License in Indonesia: Step-by-Step Process
License applications in Indonesia can be quite confusing in certain ways. Below is a streamlined overview of the general process of the Business License Application, followed by both local and foreign companies:
Step 1: Establish Your Legal Entity (PT or PT PMA)
- Determine business structure
- Prepare Articles of Association
- Register through the Ministry of Law and Human Rights
- Secure a legal address
- Obtain tax registrations (NPWP & NIK for the director)
Step 2: Apply for NIB via OSS-RBA
The NIB serves as the foundation for all subsequent licensing requirements. This Business License is mandatory regardless of the type of company you set up in Indonesia. Applying for an NIB can be done through the OSS System (an integrated system for business entities in Indonesia)
Step 3: Determine Required KBLI Codes
Correct KBLI classification ensures correct licensing obligations, especially for digital businesses.
Step 4: Fulfil Risk-Based Licensing Requirements
Depending on low, medium, or high-risk categories, businesses must meet technical and compliance standards.
Step 5: Complete Commercial/Operational Licensing
This may include:
- Standard Certificates
- Industry-specific approvals
- Digital-sector permits such as PSE
Step 6: Register for PSE (if applicable)
Companies conducting online activities must submit data, platform information, and compliance documentation through Kominfo’s PSE portal.
Step 7: Maintain Ongoing Reporting & Compliance
Digital companies must adhere to data protection obligations, reporting standards, and periodic licensing updates.
Get a Business License in Indonesia: Document Requirements
While requirements vary by business activity and risk level, typical documents include:
Corporate Documents
- Deed of establishment
- Ministry approval letter
- NPWP & NIK
- Capital structure
- Company address documentation
- Supporting operational documents (if applicable)
Director & Shareholder Documents
- Passport / KTP
- NPWP
- Personal details & signatures
Platform or Online Business Documentation
- System architecture
- Data processing policies
- Privacy policy & terms of service
- Domain/website information
- Data centre partnerships (if relevant)
Comprehensive Guide to Safely Set Up a Business in Indonesia and Stay Compliant
Launching an online business or tech company in Indonesia brings immense opportunity, but compliance must remain a priority. Choosing the right business structure, obtaining proper licensing, and registering as a PSE are foundational steps to ensuring legality, continuity, and consumer trust.
With the evolving regulatory landscape, especially within the digital sector, businesses must stay informed and compliant with OSS-RBA standards, data protection requirements, and online operational licensing.
Partnering with a trusted advisory firm ensures that your company remains protected and aligned with Indonesian corporate law.
At LMI Consultancy, we guide entrepreneurs, foreign investors, e-commerce operators, and digital innovators through every stage of the licensing process—from business establishment to PSE registration and ongoing compliance.
For expert assistance with business licensing or online business compliance in Indonesia, Contact LMI Consultancy today.
