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Indonesia's New Risk-Based Licensing System: New Sectors, System and Sanctions

The Indonesian Government previously issued Regulation No. 5 of 2021 on the Organization of Risk-Based Business Licensing and its Amendment (collectively referred to as “ Regulation 5/2021 ”), which established the main regulatory framework for risk-based business licensing. This framework encompasses determinations of risk levels and business scales, as well as basic licensing requirements, and various supervision and evaluation mechanisms that apply throughout Indonesia.

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