NIB: A Guide for Businesses in Indonesia
Before the Job Creation Law, businesses in Indonesia were required to register and obtain a Business Registration Certificate (TDP). However, with the implementation of the Job Creation Law, the TDP has been replaced by the Business Identification Number (NIB).
What is a NIB?
Business Identification Number or NIB is an official identification for Business Actors issued as proof of registration or enrollment to conduct business activities. NIB also serves as a unique identifier for Business Actors in carrying out their business activities. Every Business Actor in Indonesia is required to have one NIB, which is issued by the Online Single Submission (OSS) Institution. The NIB consists of a random number with security features and an electronic signature, making it an official identity for conducting business activities. The issuance of NIB is regulated by Government Regulation of the Republic of Indonesia Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.
The NIB includes various important information, such as:
- Business Actor Profile: Basic information about the Business Actor.
- Business Capital: Details of the capital used in the business.
- Taxpayer Identification Number (NPWP): Tax identity for the Business Actor.
- Indonesian Standard Industrial Classification (KBLI) Code: Code indicating the type of business activity.
- Business Location: Address of the business location.
The OSS Institution issues the NIB through the OSS System by considering several factors:
- Risk Level: Assessing the risks associated with the business field.
- Examination of Business Field Provisions: Ensuring compliance with applicable regulations.
- Minimum Investment Provisions: Checking the minimum investment required.
- Capital Provisions: Assessing the business capital structure.
Reference:
Government Regulation of the Republic of Indonesia Number 5 of 2021
https://peraturan.bpk.go.id/Details/161835/pp-no-5-tahun-2021