Industrial Bussiness License (IUI)

IUI (Industrial Business License) is a business license that must be obtained by every business entity engaged in industrial activities, namely activities that process raw materials or utilize industrial resources to produce goods with higher added value. Its legal basis refers to Law No. 3 of 2014 on Industry and Government Regulation No. 5 of 2021 on Risk-Based Business Licensing, under which the IUI is administered through Indonesia's OSS-RBA (Online Single Submission – Risk-Based Approach) system. The licensing requirements depend on the business risk level based on the KBLI (Indonesia Standard Industrial Classification). Low-risk industries are only required to obtain a Business Identification Number (NIB), medium-risk industries must obtain an NIB along with a Standard Certificate, while high-risk industries are required to obtain both an NIB and a verified Industrial Business License (IUI). The authority to issue the license rests with the Ministry of Industry, provincial governments, or regency/municipal governments, depending on the scale and scope of the business.

The application process is carried out through the OSS system, beginning with account registration and the issuance of an NIB, followed by the submission of technical information, including the type of industry, production capacity, raw materials, machinery and equipment, workforce details, and supporting documents such as KKPR (Spatial Utilization Activity Conformity), PBG (Building Approval), and environmental approvals. Business operators must then fulfill the required commitments through SIINas (National Industrial Information System) and undergo technical verification by the relevant authorities before the license becomes fully effective. The IUI remains valid as long as the company continues its industrial operations, provided that it submits periodic reports through SIINas and updates the license whenever there are changes in production capacity, product types, or business location. Holding an IUI provides legal recognition for industrial operations, facilitates access to financing and business partnerships, and serves as a prerequisite for participating in government development programs and incentive schemes.