Client Alert · Investment Law · Prasetyo Law Office · 2026
Legal Basis
- Minister of Investment Regulation No. 5 of 2025 (Permentan BKPM 5/2025) on Risk-Based Business Licensing and Investment Facilities through OSS
Introduction
Permentan BKPM 5/2025 introduces updated guidelines for Risk-Based Online Single Submission (OSS-RBA) — Indonesia’s integrated digital business licensing platform. This regulation significantly affects all PT PMA seeking to establish or modify their business licenses.
Key Change 1: Supporting Business Activities in Articles of Association
All PT must now include both primary and supporting business activities in their business classification.
Supporting business activity characteristics:
- Must support the primary business activity
- May generate independent revenue
- KBLI code must differ from primary activity KBLI
- Applications may be submitted after primary activity license
- May not exceed the scale of the primary activity
Practical impact for PT PMA: KBLI selection must be carefully planned at incorporation. Companies adding supporting activities later must amend their Articles of Association first.
Key Change 2: Updated Risk Classification
| Risk Level | License Type | Requirements |
|---|---|---|
| Low Risk | NIB only | NIB sufficient to commence operations |
| Medium-Low | NIB + Standard Certificate | Self-declared compliance |
| Medium-High | NIB + Standard Certificate + Verification | Government verification required |
| High Risk | NIB + Business License | Full licensing; sector-specific permits |
Many PT PMA sectors are classified as Medium-High or High risk — full licensing required before commencing operations.
Key Change 3: Investment Facility Applications via OSS
Investment facility applications are now integrated in OSS, including: import duty exemptions for capital goods, tax holidays for pioneer industries, tax allowances, and Special Economic Zone (KEK) incentives.
LKPM Reporting Obligations
| Company Scale | Reporting Period | Deadline |
|---|---|---|
| Micro and Small | Annually | 31 January (following year) |
| Medium | Semi-annually | 5 July (H1) and 5 January (H2) |
| Large | Quarterly | 5th of month after quarter end |
For PT PMA: All PT PMA are classified as large investors — requiring quarterly LKPM submission. This is one of the most frequently overlooked compliance obligations.
Action Points for PT PMA
✓ Review KBLI codes — confirm primary and supporting activities are correctly registered
✓ Verify risk classification and ensure correct license before operations
✓ File LKPM quarterly — late filing triggers sanctions
✓ Update OSS data after any corporate change
Conclusion
Permentan BKPM 5/2025 reinforces Indonesia’s digital, risk-based investment licensing system. Plan KBLI carefully, understand risk classification, maintain quarterly LKPM reporting, and use OSS as your primary licensing interface.
This article is for general legal information and educational purposes only.
Prasetyo Law Office
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