Government Regulation 28/2025 Promotes Ease of Doing Business and Investment Growth in Indonesia
Jakarta – The government continues to demonstrate its commitment to promoting a healthy and investment-friendly business climate. This is demonstrated by the issuance of Government Regulation (PP) Number 28 of 2025 by President Prabowo Subianto. This regulation replaces Government Regulation Number 5 of 2021 and serves as a manifestation of strengthening the national economic transformation based on risk-based business licensing.
This regulation is expected to accelerate the development of an ease of doing business ecosystem and increase investor confidence in the stability and efficiency of the Indonesian bureaucracy.
In a socialization event held the same day, the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, emphasized that the government consistently promotes a transparent and certain licensing system.
“The issuance of PP Number 28 of 2025 demonstrates the government’s commitment to continuously developing a business licensing ecosystem to support investment growth,” said Susiwijono.
He explained that the strengthening of regulations and system integration in this Government Regulation (PP) will simplify the licensing process, accelerate services, and provide clarity and legal certainty for business actors at all levels.
One key aspect of this PP is the implementation of a Service Level Agreement (SLA), which ensures clear service deadlines at each stage of the licensing process, from registration to issuance.
Furthermore, this regulation also begins implementing a fictitious-positive policy, whereby if the system does not respond within the specified time, the process automatically proceeds to the next stage. This policy is believed to reduce bureaucratic hurdles and expedite the licensing process.
For Micro and Small Enterprises (MSEs), the government is providing significant convenience by simplifying the self-declaration-based licensing process in the Online Single Submission (OSS) system.
The OSS system itself is now strengthened with three additional subsystems: Basic Requirements, Business Facilities, and Partnerships, which further simplify MSEs’ access to business permits digitally.
This PP also confirms its position as the sole reference for business licensing. Susiwijono emphasized that there must be no additional requirements or permits from ministries, institutions, regional governments, or area managers that are not regulated in this Government Regulation.
“In addition to these three main points, we also want to emphasize that Government Regulation Number 28 of 2025 serves as the single reference, meaning that there must be no additional requirements or permits issued by ministries, institutions, regional governments, or area managers that are not regulated in this Government Regulation,” said Susiwijono.
Echoing this sentiment, Heldy Satrya Putera, Secretary of the Ministry of Investment and Downstream Development/Principal Secretary of the Investment Coordinating Board (BKPM), explained that the system is now equipped with a monitoring dashboard to ensure the permit process runs according to the specified timeframe. If the deadline is missed, the system automatically assumes the permit has been approved.
“All permits now have a time limit. They all have a time limit,” Heldy said.
The government’s policy direction remains clear: creating a modern, fast, and efficient business climate, while maintaining regulatory credibility in the eyes of domestic and foreign investors.
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