10 Essential Business License Types You Need in Indonesia

Understanding the right business license is crucial before launching your venture in Indonesia. Each license serves a specific legal purpose and ensures your operations comply with national regulations. Whether you’re starting a small business or managing a large-scale enterprise, having the correct permits will boost your credibility, minimize legal risks, and grant access to essential public services.

Here’s a breakdown of the 10 key business license types you need to operate legally and efficiently in Indonesia.

1. Business Identification Number (NIB)

NIB, is a unique identity number required for all businesses. Issued through the OSS (Online Single Submission) system, it replaces multiple documents, including the Company Registration Certificate (TDP), Importer Identification Number (API), and customs access permits. This licence is mandatory for individuals, business entities, and legal corporations.

2. Taxpayer Identification Number (NPWP)

For tax compliance, NPWP functions as your official tax identification number, issued by the Directorate General of Taxes. It registers business owners and legal entities as taxpayers and is essential for meeting tax obligations, submitting tax reports, and conducting financial transactions within legal boundaries.

3. Business Domicile Certificate (SKDU)

SKDU certifies your business address and is usually issued by the village or subdistrict office where your business operates. It is often a prerequisite for other licences like NPWP and SIUP. With complete documents, SKDU can typically be issued within a day.

4. Company Registration Certificate (TDP)

TDP acts as proof that your business is officially registered with the appropriate government authority. It verifies that you’ve fulfilled all administrative requirements and your business is legally recognized to operate in Indonesia.

5. Business Location Permit (SITU)

SITU ensures your business location complies with local spatial planning and zoning regulations set by the regional government. This licence validates that your business site is appropriately designated for commercial activity, supports urban development plans, and does not disrupt residential or protected areas. It is especially crucial for businesses in densely populated or mixed-use zones where regulatory scrutiny is higher.

6. Trade Business Licence (SIUP)

Required for Buying and Selling, SIUP is issued to companies engaged in trading goods or services. Provided by the local Department of Trade and Industry, it validates your business’s authority to carry out commercial transactions legally

7. Building Construction Permit (IMB)

Before you build or renovate, an IMB is required for constructing, expanding, or even maintaining a building. Issued by the local government, it ensures your project follows technical standards and administrative regulations. It also helps prevent legal disputes, supports orderly urban development, and is a critical requirement when applying for utilities, insurance, or occupancy certificates.

8. BPOM Licence

Businesses producing food, beverages, cosmetics, or medicines need a BPOM licence. This permit, issued by the Food and Drug Authority, guarantees product safety and quality. It’s especially crucial for large-scale producers whose goods must pass rigorous testing.

9. Environmental Permit

If your business has the potential to impact the environment, you must obtain an environmental permit for sustainable operations. This includes completing an Environmental Impact Analysis (AMDAL) or submitting UKL-UPL documentation to demonstrate commitment to sustainable practices.

10. Industrial Business Licence (SIUI)

SIUI is essential for businesses involved in industrial activities such as food processing or manufacturing. Issued by the regional Department of Industry, it certifies that your operations comply with the applicable industrial laws.

Don’t Skip These Business Licence Requirements

Securing the right business license ensures smooth operations, legal protection, and improved business credibility in Indonesia. Before launching your venture, identify the licences that apply to your specific industry and scale.

Ready to Start Your Business in Indonesia?

Let us guide you through the licensing process and beyond. Our expert team will support you at every stage, from compliance to strategic planning. With in-depth local knowledge, we help you unlock opportunities and avoid costly missteps. Contact us at [email protected] to begin your journey and build a successful business in Indonesia.