Overview

The introduction of Regulation of the Government No. 5 of 2021 (“Regulation 5/2021”) on the Organization of Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko – “PBBR”[1] in February 2021 represented an Indonesian Government initiative to reform the country’s business processes through the adoption of a risk-based approach. Since then, Regulation 5/2021 has served as one of Indonesia’s essential business frameworks and covers a wide range of areas that specifically relate to business licensing (e.g. relevant risk levels, licensing requirements and applicable supervision mechanisms).[2]