Government Simplifies Licensing, Adds Tax Incentives for

JAKARTA, October 30, 2025 – Deputy Minister of Investment and Downstream Development at BKPM, Todotua Pasaribu, announced that the government has introduced measures to simplify business licensing and expand tax incentives to attract investors. The remarks were made at the 100 Indonesian Economists Forum 2025.

The core initiative is Government Regulation No. 28 of 2025 on Risk‑Based Business Licensing, which establishes a positive‑fiction mechanism whereby 132 types of permits, such as hotel licenses, are automatically approved if no response is received within a set period. Companies may also settle licensing fees after the permit is issued, while the agency retains a precautionary approach for high‑risk permits like environmental impact assessments and location permits.

Faster permit issuance is expected to accelerate project implementation and improve legal certainty for investors. The broadened tax incentives could lower capital costs, potentially boosting both foreign and domestic investment in productive sectors.