How to Obtain a Company Registration Number (NIB) in Indonesia?

In Indonesia, the company registration number is no longer a simple one-line identifier. For most businesses, that number is the Nomor Induk Berusaha (NIB), the Business Identification Number issued through the government’s Online Single Submission (OSS) portal.

The NIB is the backbone of a broad reform effort that began with the Job Creation Law and risk-based licensing regulations and was updated again in 2025 with a new government regulation on business licensing. Without an NIB, you cannot legally operate, sign many commercial contracts, access customs and import facilities, or apply for a range of sectoral permits

Indonesia is placing a bet on the ability to leverage simplicity into formalization. Foreign investment in Indonesia in 2022 was approximately USD 35 billion, and a study in 2023 revealed the country’s small businesses numbered only 5.8 percent of the total 64 million that were registered.

In this guide, we explain, step by step, how to obtain a company registration number (NIB) in Indonesia. You’ll learn how the process works, the key decisions involved, and the everyday challenges that both local and foreign founders may face.

What is a Business Registration Number (NIB)?

Under Government Regulation No. 28 of 2025 on the Implementation of Risk-Based Business Licensing (GR 28/2025), the NIB is defined as proof that a business has registered and as the official identity the business must use in dealings with the government. For low-risk activities, the NIB itself functions as the core business license; for higher-risk sectors, it is the starting point for obtaining additional standard certificates or licences.

Beyond the law, the NIB is also a tool of economic policy. By tying together business registration, tax, customs and social security information, the government is attempting to expand the tax base, track investment more accurately and give banks and investors greater confidence that the companies they deal with exist and comply with basic rules.

1. From Paper Files to a Single Digital Identity

Before OSS, registering a company meant shuttling between ministries and regional offices, each with its own forms, fees and timelines. Different licences carried different numbers; there was no single identifier that followed a business through the system.

With OSS and risk-based licensing, the government is trying to invert that model. A business registers once, online, and receives an NIB. Sectoral ministries and local governments are meant to pull data from OSS rather than force the business to repeatedly submit it. For investors accustomed to one-stop windows in other markets, Indonesia’s system now looks more familiar, even if implementation is still uneven.

2. Job Creation Law

The current framework has two anchors. The first is the Job Creation Law, which mandates simplified, risk-based licensing and explicitly links MSME licensing to the NIB for both online and offline registration.

The second is GR 28/2025, which updates earlier risk-based regulations and again enshrines the NIB as both proof of registration and the formal identity of the “business actor”. For low-risk activities, the regulation states that the NIB alone constitutes the business licence. Medium-risk activities require an NIB and a standard certificate, while high-risk activities require an NIB plus a full license.

Who is Required to Obtain an NIB?

The regulations apply to “business actors”: individuals and entities across sectors. That includes:

• Locally owned limited liability companies (Perseroan Terbatas)
• Foreign-investment companies (PT PMA)
• Partnerships and other legal forms (CV, firms, cooperatives, foundations)
• Individual entrepreneurs, including micro and small businesses, when they seek formal recognition 

For foreign investors, the NIB is a mandatory step once a PT PMA has been established and approved by the Ministry of Law and Human Rights.

What Does the NIB Actually Do in Practice?

In practice, the NIB works as a multi-function identifier. Various regulations and guidance state that it may:

• Serve as the company registration number and proof of business registration.
• Replace the old company registration certificate (TDP)
• Act as an Importer Identification Number and provide customs access for businesses that trade across borders.
• Trigger the issuance of basic business licences and certain location permits through OSS.
• Facilitate access to financing and government programs targeted at formal businesses. 

For many businesses, that consolidation is the real value of the NIB: it reduces the number of distinct identifiers that have to be tracked, renewed and reported.

Why Does the NIB Matter for Indonesia’s Growth Story?

Indonesia’s government sees formalisation as an economic necessity. The country’s population, estimated at around 276-283 million, and its USD 1.2–1.4 trillion economy are often cited in investment pitches. Yet the MSME data show how much of that economy remains off the books.

When only 5.8 per cent of more than 64 million MSMEs hold an NIB, most small firms are still operating without formal recognition. That limits their ability to access bank credit, participate in modern retail supply chains, obtain halal and standardisation certificates, or bid on government contracts. The NIB is meant to be the on-ramp into that formal, higher-productivity segment.

Why Are NIB and NPWP Important for Your Company?

Understanding Indonesia’s company registration number requires distinguishing among several overlapping identifiers. The NIB is the central piece, but it interacts with the tax identification system, social security numbers and sectoral licences.

NIB: The Primary Company Registration Number

The NIB acts as the official company registration number for licensing and regulatory purposes. It is issued once a company’s data is entered and validated in the OSS system. Law firms and investment advisors now routinely refer to it as Indonesia’s “business registration number.

The number itself is a 13-digit code, accompanied by a QR code and electronic signature in the OSS-generated certificate.

NPWP: Indonesia’s tax Identification Number

Parallel to the NIB is the Nomor Pokok Wajib Pajak (NPWP), Indonesia’s tax identification number. The NPWP is administered by the Directorate General of Taxes and remains mandatory for virtually all companies and many individual entrepreneurs.

The two systems are increasingly integrated. For many new businesses registering through OSS-RBA, the NPWP is issued or linked automatically as part of the same process, so that tax data and licensing data can be reconciled. From 2024, taxpayers have also been required to link their NPWP with their national ID number (NIK) into a single tax identity, a change that affects individuals who are also using OSS as sole proprietors.

Other numbers: Social security, customs and sectoral IDs

A company that registers via OSS may receive additional identifiers at the same time, especially if it intends to employ staff or trade across borders. Guides for foreign investors note that successful OSS-RBA registration can yield, in one sequence:

• NIB (company registration/business identification)
• NPWP (tax)
• Social security registration numbers for employment insurance (BPJS Ketenagakerjaan)
• Health insurance registration (BPJS Kesehatan)

For firms involved in import and export, the NIB can also serve as an Importer Identification Number and provide customs access, provided the appropriate activities are selected in OSS.

What Happens to The TDP, SIUP and the Old Permits?

The reform process deliberately retired a series of older licences. The NIB now replaces the traditional company registration certificate (TDP), as well as many stand-alone import licences and customs registration numbers.

For trading businesses, local trading licenses (Surat Izin Usaha Perdagangan, or SIUP) are still relevant, but the process of obtaining them has been folded into OSS wherever possible. In some regions, certain legacy documents are no longer required at all once an NIB is in place.

How do Banks and Counterparties Treat The NIB?

In practice, Indonesian banks and large corporate customers increasingly treat the NIB as the primary proof that a company exists and is permitted to operate. Along with the deed of establishment and the approval letter from the Ministry of Law and Human Rights, the NIB is commonly requested during “know your customer” checks, supplier onboarding and loan applications.

For foreign investors, this convergence simplifies matters: the same identifier used for licensing is the one counterparties most often want to see.

How to Choose a Business Structure and Prepare Documents for NIB?

An NIB is not the first legal document a new company receives in Indonesia. The OSS portal assumes that the basic legal entity, whether a local PT, a PT PMA, or another form, has already been created. The preparatory stage is where many founders underestimate the time and paperwork involved.

1. Selecting the right vehicle: PT vs. PT PMA vs. others

The most common structures are:

PT (local limited liability company): Owned entirely by Indonesian citizens or entities. Often used for domestic-facing businesses in sectors reserved for local ownership or where foreign investment limits apply.

PT PMA (foreign-investment limited liability company): Required where foreign shareholders exceed thresholds. Subject to minimum capital requirements and sectoral restrictions set out in the “Positive Investment List”.

Other forms: Commanditaire vennootschap (CV), firms, cooperatives, foundations and individual enterprises, each with its own rules.

The choice of structure determines what documents you must present when you eventually seek an NIB and which KBLI (Indonesian business activity classification) codes you can select. For foreign investors, a PT PMA is usually the only route that permits direct ownership and control in regulated sectors such as services and manufacturing.

2. Drafting and notarising the deed of establishment

For companies with legal-entity status, the starting point is a deed of establishment drawn up by a licensed Indonesian notary. This document sets out the company name, address, share capital, shareholders and initial directors and commissioners.

Advisory firms estimate it typically takes about 4 working days to obtain the deed, assuming the necessary shareholder and identification documents are in order. In practice, foreign investors often spend longer in this stage, particularly when translating documents and arranging powers of attorney from abroad.

3. Securing approval from the Ministry of Law and Human Rights

Once the deed is executed, the notary submits it electronically to the Ministry of Law and Human Rights for approval of the company’s name and legal status. This approval effectively “births” the PT or PT PMA as a legal person.

Guides based on ministry practice suggest that formal approval can be issued within one working day, although corrections may be required if the proposed name conflicts with existing entries or fails to meet naming rules.

4. Obtaining or linking the NPWP

A tax identification number is required early in the process. For legal entities, this is the company NPWP; for certain micro-enterprises or sole proprietors, an individual NPWP may be used.

Here, the sequence becomes more fluid. Some practitioners still apply for the NPWP before entering the OSS portal, visiting the local tax office to obtain a physical NPWP card. Others rely on OSS to generate or link the NPWP electronically. Both approaches are permitted; what matters is that the tax identity exists and is linked to the company’s core data.

5. Assembling supporting documents for OSS

By the time you are ready to log onto oss.go.id, you should have the following at hand, in digital form:

• Deed of establishment and any amendments
• Ministry of Law and Human Rights approval letter
• NPWP (or director’s NPWP for certain entities)
• Identity documents for directors and ultimate shareholders
• A clear business address and, where necessary, a location or zoning reference
• A preliminary list of KBLI codes that match your planned activities

For micro and small individual businesses, the documentation can be simpler: a national identity card, basic information on the business and location, and an email address are often sufficient.

How Do You Get an NIB Using the OSS-RBA Portal?

Once the legal entity exists, the core task is to complete registration through the Online Single Submission Risk-Based Approach (OSS-RBA) system at oss.go.id. The portal has been upgraded repeatedly since its launch; the current version reflects the risk-based licensing framework of GR 28/2025.

Creating an OSS account

The first step is to create a user account linked to the person or entity that will hold the licences. The process typically involves:

1. Visiting the official OSS website and choosing the registration type (individual or business entity).
2. Entering basic details, including name, national ID number or passport, email and phone number.
3. Verifying the account through an activation link sent by email.

For entities, the account is usually created in the name of the director or another authorised representative, who will then manage subsequent licensing applications.

Entering company and shareholder data

Once logged in, the user selects “business licensing” and starts a new application. At this stage, the system requires detailed company data that must match the deed of establishment and ministry approval, including:

• Company name, legal form and registration details
• Registered address and, in some cases, information on land use or zoning
• Share capital and ownership structure.
• Board of directors and commissioners
• Beneficial ownership information, where applicable

The OSS system automatically cross-checks certain fields against other government databases. Discrepancies can delay issuance of the NIB and may require manual clarification.

Selecting The Correct KBLI Codes and Risk Profile

A central feature of OSS-RBA is the use of KBLI codes to classify business activities. The codes determine the risk classification as low, medium, or high, and, therefore, what licenses beyond the NIB will be required.

Choosing the wrong KBLI code can have lasting consequences, ranging from misaligned tax treatment to difficulties opening bank accounts or obtaining sectoral permits. Many foreign investors rely on local consultants or law firms to align KBLI choices with their global business model and Indonesian regulations.

Automatic issuance of the NIB

Once all required data are submitted and validated, OSS issues the NIB electronically. Several sources describe the process as largely automated, with the NIB generated within hours in straightforward cases.

The NIB certificate typically includes:

• The 13-digit NIB
• The company’s name, address and legal form
• The list of KBLI activities covered
• Risk classification and any conditional commitments
• A QR code and electronic signature

This document can be downloaded as a PDF and is often the first document counterparties request.

Linking additional licences and permits

For low-risk activities, the NIB itself authorises the company to begin commercial operations, subject to compliance with general laws. For medium- and high-risk sectors, OSS will generate a list of additional commitments, such as:

• Standard certificates, which may be self-declared or require third-party verification
• Full business licences, which can involve additional documentation and inspections
• Environmental approvals and spatial planning conformity (KKPR)
• Building approvals (PBG) and function worthiness certificates (SLF)

These obligations are displayed within the OSS dashboard. The system tracks whether the company has fulfilled them and can, in theory, revoke or suspend licences if commitments are not met.

Activation and maintenance of the NIB

In some cases, particularly for MSMEs, the NIB may require activation within a specified period after issuance, usually by logging back into OSS and confirming that operations have begun. Guidance notes suggest a ten-working-day window in certain use cases, although practice may vary.

The NIB remains valid as long as the business exists and complies with relevant regulations; there is no yearly renewal fee. However, any changes in company data, KBLI activities, or ownership must be updated through OSS to keep the record accurate.

What Sector-Specific and Regional Rules Affect NIB Registration?

The promise of OSS is a single, integrated licensing journey, but implementation differs across sectors and regions. The NIB is often the start of a more extended conversation with both national ministries and local governments.

Risk-based tiers and what they mean day to day

Under the risk-based model, regulatory intensity scales with risk:

Low-risk activities: NIB alone functions as the business licence. Typical examples include certain kinds of consulting or low-impact services.

Medium-risk activities: NIB plus a standard certificate, which may involve self-declaration or third-party audits.

High-risk activities: NIB plus a specific business licence issued by a ministry, agency or regional government, often after inspections or detailed technical reviews.

For founders, this means the question is not just how to get an NIB, but what that NIB obliges them to do next.

Local government roles and spatial planning

Despite digital integration, spatial planning and land use approvals remain rooted in local government. Businesses may need:

• Confirmation that their location complies with zoning plans (KKPR)
• Environmental approvals for projects with physical impact
• Building approvals and function-worthiness certificates for premises

These processes can still involve offline steps, such as site visits and in-person document submission, even when initiated through OSS.

Sectoral regulators and professional licensing

Professional services, health care, education, transport, and financial services are often regulated by dedicated bodies with their own licensing criteria. A professional services firm might obtain an NIB quickly, but still needs to secure:

• Membership in a professional association
• Sector-specific operating licences
• Individual licences for regulated professionals

The NIB is a prerequisite in these cases, but not a substitute for professional or prudential oversight.

E-commerce and digital platforms: higher risk, more scrutiny

Recent updates have reclassified certain e-commerce and intermediary service providers as higher-risk activities, particularly those operating digital platforms at scale. Small-scale e-commerce providers in specific KBLI categories now require full licences in addition to their NIB, reflecting concerns around consumer protection and data.

Digital founders, therefore, need to pay close attention to how their KBLI codes are categorised and what commitments OSS attaches to them.

Tourism, manufacturing and resource sectors

Indonesia’s tourism, manufacturing and resource-based sectors have their own layers of approvals, from tourism business licences to environmental impact assessments and mining permits. Investment promotion materials highlight the country’s efforts to streamline these processes within OSS, but in practice, investors still report variation across provinces and agencies.

In these sectors, obtaining the NIB is often the quickest part of the process; securing all necessary sectoral permits is where timelines stretch.

What Are Common Pitfalls, Processing Times, and Tips for a Smooth NIB Application?

Businesses, particularly MSMEs and new foreign entrants, encounter recurring snags, from limited digital literacy to misaligned KBLI choices.

1. The MSME gap: digital access and awareness

Despite the simplified online process, only a small fraction of Indonesia’s MSMEs are registered with NIBs. The Gadjah Mada University study cited earlier found that in 2023, just 5.8 per cent of roughly 64.19 million MSMEs had obtained an NIB, limiting their access to formal markets and certification schemes.

Researchers attribute the gap to several factors:

• Limited knowledge of OSS and the benefits of formalisation
• Patchy internet access and digital skills, particularly outside major cities
• Perceptions that formalisation will increase tax burdens without clear advantages

Government and donor programs are working to address this, but the numbers illustrate how many small businesses are still operating in the shadows of the new system.

2. Data mismatches and technical glitches

Law firms and corporate service providers consistently flag data mismatches as a common cause of delays. When details in the deed of establishment, ministry approval and NPWP do not align perfectly with the data entered into OSS, even down to spelling or punctuation, automated validation can fail.

OSS has been upgraded repeatedly since its launch, improving stability, but technical glitches, timeouts and browser issues continue to be reported, particularly during peak periods or when new regulations are rolled out.

3. Choosing the wrong KBLI

A misselected KBLI code can box a company into the wrong regulatory category. For example, a business that positions itself as a software development firm but selects a trading-related KBLI code may be asked to obtain trading licences it does not need while missing the appropriate licences for digital services.

Correcting KBLI choices later is possible but can be bureaucratically cumbersome, particularly if tax and licensing data have already been linked to the original codes.

4. Underestimating post-NIB obligations

Some founders treat the NIB as the final milestone and discover later that they have outstanding commitments – environmental, building-related or sectoral – that must be fulfilled before they can operate legally. GR 28/2025 and related guidance emphasise that, especially for medium- and high-risk activities, the NIB is only one component of a broader licensing package.

Failing to meet these obligations can lead to licence suspension or fines, particularly as integration between OSS and supervisory systems deepens.

5. Timelines, costs and the role of intermediaries

Officially, obtaining an NIB itself is free and, once the upstream entity documents are in place, can be a matter of days. A widely cited breakdown suggests four working days for the deed, one day for ministry approval and one day for NPWP issuance, with the NIB application then proceeding online.

In practice, timelines stretch when:

• Foreign documents must be legalised and translated
• A physical presence is needed to visit tax offices or notaries.
• Sectoral approvals require inspections or additional studies.

As a result, many foreign investors and larger domestic firms hire corporate service providers to shepherd applications through OSS and sectoral ministries. For MSMEs, governments and NGOs have begun offering free or low-cost assistance to close the gap.

How is Indonesia’s Company Registration System Evolving?

Indonesia’s push to consolidate company registration around the NIB and OSS is part of a broader attempt to make the country more attractive to investment and to bring its vast informal sector into the formal economy. Investment climate reports emphasise the scale of the opportunity, a large, young population, a growing middle class, rising investment flows, and the need for predictable, transparent rules to unlock it.

The Job Creation Law and GR 28/2025 enshrine risk-based licensing, position the NIB as the core company registration number, and commit the state to digital service delivery through OSS-RBA.

The statistics on MSME registration, the persistence of sector-specific bottlenecks and the uneven capacity of local governments suggest that Indonesia’s licensing revolution is still mid-flight. For founders and investors, the practical message is straightforward:

• Treat the NIB as essential but not sufficient; understand the full set of licenses your KBLI codes trigger.
• Invest time upfront in clean documentation and accurate data entry to avoid delays later.
• For complex or high-risk sectors, assume that offline engagement with regulators will still be part of the process.

For now, Indonesia’s company registration number is a digital identity keyed into the country’s most ambitious regulatory modernisation project in decades, and it will increasingly determine which businesses can participate fully in the region’s fastest-growing major economy.

Conclusion

The transformation of business licensing into a single digital identity in Indonesia is a political and economic wager on transparency, formalisation, and investment-led growth. The Nomor Induk Berusaha has become the spine of that system. It connects taxation, trade, labour, and licensing into one regulatory bloodstream.

While global investors move swiftly through the system, most of Indonesia’s small businesses still operate outside it. The NIB simplifies entry, but it cannot, by itself, resolve gaps in digital access, technical understanding, or trust in formal institutions.

The NIB is the price of entry into Indonesia’s formal economy, and the real work begins after the number is issued, in compliance, documentation, verification, and sustained regulatory discipline. Indonesia has built the gate, but walking through it still requires strategy, and this is where 3E Accounting Indonesia steps in.