In recent years, the Indonesian government has made a strong push to attract more investment and speed up economic growth. One of its main strategies has been to simplify and modernize the business licensing process—making it faster, easier, and more transparent for both local and foreign investors
A major milestone in this effort is the introduction of Online Single Submission (OSS) system, which allows businesses to register and apply for permits in one integrated platform. Instead of navigating layers of bureaucracy, business owners can now obtain their Nomor Induk Berusaha (NIB)—or Business Identification Number—through a single, centralized system.
The Nomor Induk Berusaha (NIB), or Business Identification Number, serves as a unique registration number for every business entity operating in Indonesia. Issued through the OSS platform, the NIB functions not only as proof of business registration but also as a prerequisite for obtaining other relevant business licenses, permits, and facilities. When reviewing the attached licensing documents generated by the OSS system, some NIB holders may notice the phrase:
“Terbit dalam rangka percepatan”
Translated: “Issued for acceleration purposes”
This phrase is not decorative—it has a clear legal basis, as stipulated under Article 49 paragraph (1) of the Indonesia Investment Coordinating Board Regulation No. 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing and Investment Facilities (BKPM Reg. 4/2021).
Under this rule, “acceleration” applies to high-risk business activities that meet one of the following criteria:
- The business is located in a Special Economic Zone (KEK), Free Trade Zone and Free Port Area (KPBPB), or an Industrial Estate; or
- The business is part of a National Strategic Project.
The purpose of this rule is to let certain high-impact businesses start preparatory activities earlier—such as land acquisition, construction, and operational planning—without waiting for the full licensing process to finish.
This early start is especially important for large-scale or time-sensitive projects, where delays can mean missed opportunities. By allowing accelerated issuance, the government helps investors mobilize faster, create jobs sooner, and generate economic momentum while the rest of the paperwork is being completed.
While “acceleration” allows early start of preparatory work, it is not a waiver from the obligation to obtain complete business licensing.
Under BKPM Reg. 4/2021, the following rules apply:
- The business owner must secure all required licenses no later than 90 (ninety) days before the commencement of operation or production.
- The OSS system will send automated notifications and reminders starting 180 days before the projected operation/production date entered during the initial registration.
This system is designed to give investors ample time to complete compliance requirements before commercial operations begin. Failure to obtain the necessary licenses within the given timeframe, may result in the revocation of NIB as regulated under Article 46 paragraph (4) of BKPM Reg. 4/2021.
NIB revocation is a serious administrative sanction. Without a valid NIB, the company cannot legally operate. This could stop projects mid-way, disrupt existing contracts, and hurt business credibility with regulators, investors, and business partners. Hence, the phrase “Issued for acceleration purposes”, is given both as privilege and a responsibility.
The “Issued for acceleration purposes” note in an Indonesian NIB is a powerful tool for investors engaged in high-risk, strategic, or specially located projects. It allows businesses to hit the ground running—preparing sites, building infrastructure, and organizing resources—while licensing catches up. However, this privilege comes with strict compliance deadlines. Business owners must plan licensing processes in parallel with preparatory work to avoid NIB revocation and operational delays.
In essence, while the acceleration scheme represents Indonesia’s commitment to speeding up investment realization, it also places the responsibility on businesses to ensure all legal and licensing obligations are met on time.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Budhi Satya Makmur