Details of Business Development in Permen Pursuant to PP 28/2025

The Ministry of Investment and Downstreaming/Investment Coordinating Board (Badan Koordinasi Penanaman Modal– “ BKPM ”) is currently preparing Regulation of the Minister of Investment and Downstreaming, which will replace Regulation of BKPM No. 3 of 2021 on the Electronic Integrated Risk-Based Business Licensing System (“ PerBKPM 3/2021 ”), Regulation of BKPM No. 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (“ PerBKPM 4/2021 ”), and Regulation of BKPM No. 5 of 2021 on Guidelines and Procedures for Supervision of Risk-Based Business Licensing (“ PerBKPM 5/2021 ”).

The Deputy for Business Climate Development and Investment of the Ministry of Investment and Downstreaming/BKPM, Riyatno, explained that the consolidation of these regulations is expected to be an efficiency step and to facilitate the business climate, especially following the issuance of Regulation of the Government No. 28 of 2025 on the Organization of Risk-Based Business (“ PP 28/2025 ”). Riyatno stated that the drafting process of this regulation will soon enter the harmonization stage at the Ministry of Law.”

“We are waiting for input from business actors, and we plan to submit it for harmonization next week,” said Riyatno.

One of the points in the draft regulation is related to the details of business development. A more detailed explanation regarding business development will later include the addition of the volume/capacity of goods/services produced annually, the location of the business activities, and the type of business activities.

According to Riyatno, this expansion is part of business development. Meanwhile, the increase in the volume/capacity of goods/services produced annually may affect changes in the risk level.