What is NIB in Indonesia and What Foreign Investors Need to Know

NIB stands for Nomor Induk Berusaha (Business Identification Number). It is a 13‑digit unique identifier issued through the Indonesian government’s integrated business licensing system, OSS (Online Single Submission).

This system was established to simplify and unify business licensing under one electronic platform, governed by Government Regulation Number 24 of 2018 on Integrated Business Licensing Services.

The NIB is not just a number; it is the cornerstone of business legality and compliance for both local and foreign‑owned companies, including PT PMA (foreign investment limited liability companies).

It functions as the primary identification and legal recognition of a business entity in Indonesia and is required before a company can engage in virtually any commercial operation.

The OSS system itself is the official government portal where this registration and licensing process takes place.

Key Aspects of NIB in Indonesia

Purpose

The NIB functions as a unique identifier to prove a company’s legal existence in Indonesia. It facilitates regulatory compliance and enables businesses to operate under the law. The NIB plays a vital role in confirming that a business is officially recognized by the government and thus authorized to perform commercial activities.

Issuance

The NIB is issued by the Ministry of Investment/BKPM through the OSS system. For low-risk businesses, the NIB is often issued within 24-48 hours. This quick turnaround is part of the government’s broader efforts to streamline business registration and reduce bureaucratic delays.

Benefits

The NIB provides several benefits for businesses operating in Indonesia:

• Streamlined Licensing: It consolidates all necessary registrations and permits under one platform, making it easier to comply with various regulations.
• Access to Government Funding: With an NIB, businesses can access various government funding options, including the KUR (Kredit Usaha Rakyat) loans, which are offered to support small and medium enterprises (SMEs).
• Enables Further Permits: The NIB acts as a foundation for obtaining specialized permits such as import/export licenses, sector-specific approvals, and other operational permits needed to conduct business in Indonesia.

Replacement

The NIB has replaced older business licensing systems, acting as a single, centralized identity for businesses. This simplification has made business registration more efficient by eliminating multiple steps that previously required separate licenses and registrations.

Core Functions of NIB

Once issued through OSS, the NIB serves several official purposes:

1. Official Business Identity

The NIB provides legal recognition that a business is officially registered with the Indonesian government and can engage in commercial activities.

2. Company Registration Certificate (TDP)

It replaces the old Tanda Daftar Perusahaan (TDP), which was the historical company registration certificate.

3. Import Identification Number (API)

For businesses engaging in import activities, the NIB functions as the import identification number, simplifying customs procedures.

4. Customs Access

The NIB grants access to the Indonesian customs system, facilitating export and import operations where applicable.

5. Registration for Social Security

By having an NIB, companies are automatically registered in mandatory social security systems such as BPJS Kesehatan (healthcare) and BPJS Ketenagakerjaan (employment insurance) where relevant.

6. Foundation for Other Permits

The NIB is required before a company can obtain additional business licenses (Izin Usaha) and sector‑specific operational or commercial permits.

Who Needs an NIB

Every business entity in Indonesia, regardless of ownership structure, must obtain an NIB before commencing operations. This includes:

• Domestic companies
• Foreign‑owned limited liability companies (PT PMA)
• Partnerships, CVs, foundations, representative offices (as applicable)
• Individual business owners seeking formal recognition and licensing

Foreign investors cannot apply for an NIB in a personal capacity. They must first establish a legal entity (typically a PT PMA) through an Indonesian notary and get the legal entity approved by the Ministry of Law and Human Rights before registering for a NIB.

NIB and the Business Licensing Process

Step 1: Establish a Legal Entity

For foreign investors, this means forming a PT PMA, which involves:

• Drafting and notarizing the company’s Establishment Deed
• Approval of the Deed by the Ministry of Law and Human Rights
• Obtaining a Tax Identification Number (NPWP)

Step 2: Register on the OSS System

Once the legal entity is established, the company can register on the OSS platform (https://oss.go.id) with its NPWP and company details to begin the licensing process.

Step 3: Apply for and Receive NIB

The OSS system processes the registration and issues an NIB electronically once all required data is submitted and verified.

Step 4: Post‑NIB Obligations

After NIB issuance, companies may need to:

• Apply for sector‑specific or operational permits as required by their business activities
• Register employees for mandatory social insurance
• Fulfill tax reporting and compliance requirements

Key Considerations for Foreign Investors

1. NIB is Mandatory

Without a valid NIB, a company cannot legally operate in Indonesia. This includes hiring employees, signing contracts, import/export activities, or opening corporate bank accounts.

2. NIB Must Be Obtained Through the OSS System

The NIB is issued exclusively through the government’s integrated OSS platform as part of broader regulatory reform to simplify licensing and reduce administrative fragmentation.

3. Entity Type Matters

For foreign investors, the PT PMA is the standard entity that allows direct operating licenses. Representative offices may be possible but come with limitations on direct revenue generation.

4. Compliance and Integration

The NIB integrates with other government systems, such as customs, taxation, and social security. Maintaining compliance with reporting requirements is essential to preserve legal status and avoid sanctions.

5. NIB Validity

Once issued, an NIB remains valid as long as the company continues to operate and complies with applicable laws and obligations.

Conclusion

The Nomor Induk Berusaha (NIB) is a foundational legal requirement for all businesses in Indonesia, serving as the official business identity and gateway to licensing, imports/exports, customs access, and compliance with mandatory programs.

It is issued through the official Online Single Submission (OSS) system, a central government platform established to simplify business licensing and eliminate redundant permitting.

For foreign investors, obtaining an NIB is a critical step after establishing a PT PMA and before any formal business operations can begin.

Understanding and navigating the OSS system effectively is essential for compliant and successful business activity in Indonesia’s regulatory environment.

How Visa BaliEasy Can Help with NIB

At Visa BaliEasy, we offer comprehensive support for foreign investors navigating the process of establishing a business in Indonesia. Here’s how we can help:

• PT PMA Setup: We guide you through the entire process of establishing a PT PMA, ensuring full compliance with Indonesian laws.
• Investor KITAS: We assist in obtaining an Investor KITAS, which is crucial for foreign entrepreneurs to stay in Indonesia while managing their business operations.
• 24/7 Human Assistance: Our team is available around the clock to provide human assistance at every stage of the process, ensuring you have the support you need when you need it.
• No Hidden Fees: At BaliEasy, we pride ourselves on offering clear pricing with no hidden fees, ensuring complete transparency.

Let BaliEasy be your trusted partner in establishing your business in Indonesia, providing reliable services and guidance tailored to your needs. Contact us today to get started!