NLP Legal Insight May 2021 – Legal Overview on the General Aspect of Risk-Based Business Licensing (An Update post Omnibus Law)

Marshall SitumorangFounder and Partner, Nusantara Legal Partnership

In this May edition, our Legal Insight confers the general overview on the newly introduced business licensing regime, risk-based approach.

This new regime is stipulated under Government Regulation (“GR”) No. 5 of 2021 on the Implementation of Risk-Based Business Licensing (“GR 5/2021”) that revokes the previously existing legal framework of GR No. 24 of 2018 on Electronically Integrated Business Licensing Services.

GR 5/2021 stipulates a new approach in business licensing, based on business risk assessment. The main objective of this regulation is to reorganize and simplify the licensing requirement and procedures, even removing the licensing prerequisite for certain businesses.


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