Client Alert · Investment Law · Prasetyo Law Office · 2026
Legal Basis
- Regulation of the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board No. 5 of 2025 (Ministerial Regulation 5/2025) on Guidelines and Procedures for Implementing Risk-Based Business Licensing and Investment Facilities through OSS
Introduction
Ministerial Regulation 5/2025 introduces updated guidelines for Risk-Based Online Single Submission (OSS-RBA) — Indonesia’s integrated digital business licensing platform. This regulation significantly affects PT PMA companies seeking to establish or modify their business licenses.
Key Change 1: Classification of Main and Supporting Activities
Article 35 requires activities entered in OSS to be classified as main or supporting activities; it does not require every company to have a supporting activity. A main activity is a source of revenue or profit and, for a legal entity, must be reflected in its deed.
A supporting activity must support the main activity, use a different KBLI code, and satisfy the applicable licensing requirements. If the supporting activity generates revenue or profit, its KBLI must be included in the deed and the applicable minimum-investment and capital requirements must be met. If it does not generate revenue or profit, Article 35 exempts it from those investment and capital validations and from the requirement to include its KBLI in the company’s purposes and objectives.
Article 35 does not state that a supporting activity may not exceed the scale of the main activity. The required structure must instead be determined from the actual activity, revenue model, KBLI, licensing and sectoral rules.
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 | Not required | Exempt under Article 286(2) |
| Small | Semi-annually | 15 July and 15 January |
| Medium and Large | Quarterly | 15 April, 15 July, 15 October, and 15 January |
For PT PMA: A PMA business entity is categorized as a large enterprise, unless otherwise provided by applicable laws and regulations. A PT PMA therefore generally follows the quarterly LKPM schedule.
Action Points for PT PMA
✓ Review KBLI codes — confirm primary and supporting activities are correctly registered
âś“ Verify risk classification and ensure correct license before operations
✓ Confirm the applicable LKPM schedule — PT PMA generally reports quarterly, with deadlines on the 15th
âś“ Update OSS data after any corporate change
Conclusion
Ministerial Regulation 5/2025 reinforces Indonesia’s digital, risk-based investment licensing system. Plan KBLI carefully, understand the applicable risk classification, maintain the correct LKPM reporting schedule, and use OSS as the primary licensing interface.
Last verified: 27 July 2026 | Source: Regulation of the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board No. 5 of 2025, Articles 26 and 286.
This article is for general legal information and educational purposes only.
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