GR 28/2025 Ushers in a Full Revamp of Indonesia’s Risk-Based Licensing Regime

The Indonesian Government has issued Government Regulation No. 28 of 2025 on the Implementation of Risk-Based Business Licensing (Peraturan Pemerintah No. 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko, “GR28/2025”). Effective 5 June 2025, GR 28/2025 revokes and replaces the previous risk-based licensing framework under Government Regulation No. 5 of2021 (“GR 5/2021”). While GR 28/2025 maintains the risk-tiered licensing structure, it centralizes authority under the national government and expands regulatory coverage to 22 sectors (up from 16). It also introduces transitional provisions to ensure continuity for ongoing licenses and mandates the issuance of implementing regulations within 4 months to support full adoption.

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