This second part of this two-part edition of ILD Indonesian Law Digest (ILD) on Indonesias most recent framework on Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko PBBR), as set out under Regulation 28/2025, highlights new updates to previously regulated PBBR sectors. These include the separation of various joint sectors and the refining of regulatory requirements. Moreover, the new framework of Regulation 28/2025 introduces a number of new business licenses that will now support business activities (Perizinan Berusaha untuk Menunjang Kegiatan Usaha/PB UMKU), including licenses for geology-based groundwater use, as well as for the handling and safety of fresh food products.

Introduced to replace Regulation of the Government No. 5 of 2021, the new framework of Regulation of the Government No. 28 of 2025 (Regulation 28/2025) will now serve as the most recent legal framework to govern Indonesias Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko PBBR) processes. Regulation 28/2025 expands the number of sectors covered from 15 to 22, while introducing three new Online Single Submission (OSS) subsystems. In addition, while the fundamental requirements remain largely unchanged, their applicability has now been clarified, with exemptions available for businesses operating from permitted buildings or commercial complexes.

Raja Ampat, globally renowned for its biodiversity and UNESCO Global Geopark status, faces severe environmental and legal issues due to nickel mining in protected areas. Sixteen mining licenses, mostly within the geopark, have caused deforestation and reef damage. Investigations reveal companies operating illegally, exposing gaps in Indonesias environmental and mining governance. Despite laws banning mining in conservation zones, weak enforcement and inconsistent licensing continue. The situation underscores the urgent need for stronger oversight, clearer regulations, and stricter compliance to protect Raja Ampats fragile ecosystems.

Indonesia has updated its halal certification framework to improve access and clarity for micro and small enterprises (MSE), removing fixed halal certification validity. The compliance deadline for MSE has been extended to 17 October 2026, with full implementation across all product categories by 2034. New regulations also introduce requirements and quota allocations for MSE to be eligible for facilitation, along with detailed guidelines to ensure halal standards through defined criteria in materials, processes, training, and audits.

The Business Regulatory Impact Report - Energy Sector comprehensively analyzes the regulatory challenges faced by energy companies operating in Indonesia. It highlights that while the private sector is a major driver of employment and investment, particularly in developing economies like Indonesia, regulatory complexity is increasingly hindering business operations

As the most-recent revision to Indonesias public procurement of goods and services (Procurement) mechanism, Regulation 46/2025 updates include the expansion of available contracts and promotes domestic goods. Procurement methods vary by type and value, including e-purchasing, direct procurement, direct appointment, quick tender, and the widely used multi-stage tender process to ensure transparency and fair competition.

This second part of the Indonesian Law Digest (ILD) continues to discuss regulatory updates for financing institutions, venture capital companies (perusahaan modal ventura PMV), microfinance institutions and other financial services institutions (collectively referred to as PVML). Building on the first part, which focused solely on the organization of financing companies and PMV, this edition highlights new measures to strengthen internal controls across PVML entities. These include risk management, human capital development, and supervision, consolidating and replacing previous provisions for entities formerly categorized under the Non-Bank Financial Institutions framework.

In response to developments in Indonesias non-banking financial sector, OJK issued Regulation 46/2024 and Regulation 48/2024. Regulation 46/2024 focuses on the structure of financing and venture capital companies, while Regulation 48/2024 sets out updated good governance standards for the overall PVML entities. This ILD edition analyzes key provisions related to company establishment, management, capital, reporting obligations, and sanctions under both frameworks.

Indonesia faces ongoing workplace discrimination based on gender, disability, and age, despite having progressive laws and international commitments. Women, people with disabilities, and older workers face systemic barriers. Initiatives like ULD, Law 8/2016, and Decree 88/2023 show intent, but weak enforcement and limited awareness hinder real progress compared to stronger implementation abroad.

The Draft Bill on restorative justice introduces a structured mechanism for out-of-court settlements that encompasses three key stages: 1) Investigation; 2) Inquiry; and 3) Prosecution. The focus of this mechanism is on the restoration of victims original circumstances as opposed to simply penalizing offenders