IKN Authority Regulation No. 10 of 2026 on Business Licensing, Non-Business Licensing, and Non-Licensing Services

Introduction

On 30 September 2026, the Head of the Nusantara Capital City Authority enacted Regulation of the Head of the Republic of Indonesia’s Nusantara Capital City Authority Number 10 of 2026 on the Provision of Business Licensing, Non-Business Licensing, and Non-Licensing Services in the Nusantara Capital City (“IKN Authority Regulation 10/2026”), which took effect on 13 October 2026. IKN Authority Regulation 10/2026 governs the provision of licensing services in the Nusantara Capital City (“IKN”), covering Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko or “PBBR”), Non-Business Licensing, and Non-Licensing Services, including the applicable requirements, stages, service timelines, and authority of officials authorised to issue such licences.

IKN Authority Regulation 10/2026 was issued to establish good governance and increase investment through integrated, efficient, effective, transparent, and accountable licensing services. The Regulation also aims to optimise licensing services by taking into account public needs and technological developments through the structured delivery of services within an electronic system, while providing legal certainty in the granting of business legality to the public. In its implementation, IKN Authority Regulation 10/2026 is based on several laws and regulations, including the Law on the State Capital, the Job Creation Law, Government Regulation Number 12 of 2023, as amended by Government Regulation Number 29 of 2024, Government Regulation Number 27 of 2023, and Government Regulation Number 28 of 2025 on the Implementation of Risk-Based Business Licensing.

Key Provisions

Scope and Authority

Article 2 of OIKN Authority Regulation 10/2026 stipulates that licensing services in the Nusantara Capital City (“IKN”) comprise:

1. Risk-Based Business Licensing (“PBBR”);

2. Non-Business Licensing; and

3. Non-Licensing Services.

In providing licensing services in the Nusantara Capital City (“IKN”), the Head of the IKN Authority also provides licensing consultation services. Pursuant to Article 61 of IKN Authority Regulation 10/2026, the Head of the IKN Authority’s powers include receiving and examining application documents, preparing administrative documentation for levies and Non-Tax State Revenue (“PNBP”), issuing licensing instruments, verifying compliance with sectoral technical standards, signing Business Licensing (“PB”) and Non-Business Licensing documents, revoking licensing documents, and establishing service standards and service charters. The authority to receive and examine documents, prepare administrative documentation for levies and PNBP, and issue licensing instruments is delegated to the senior high-ranking official at the madya level responsible for development control through the relevant work units, while the authority to conduct technical verification is delegated to the technical work units specified in the Appendix to IKN Authority Regulation 10/2026. In carrying out such verification, the Head of the IKN Authority may also appoint certified or accredited expert institutions or professionals.

Types of Business Licensing Based on Risk Level

Article 4 of IKN Authority Regulation 10/2026 requires every Business Actor conducting business activities in the Nusantara Capital City (“IKN”) to hold Business Licensing (“PB”). The determination of PB is based on the level of risk and the scale of the business, comprising micro, small, medium, and large enterprises. The types of PB required according to the risk level of business activities are set out below.

NIB

Article 9 stipulates that each business entity may hold only one NIB, issued through the OSS System. At a minimum, the NIB must contain:

1. the name of the Business Actor;

2. the office address;

3. the telephone number; and

4. the email address.

The NIB also serves as access authorisation for customs purposes, an importer identification number, registration with the Health and Employment Social Security Administration Bodies (Badan Penyelenggara Jaminan Sosial or “BPJS”), and the initial periodic employment report.

Basic Requirements

Before obtaining PB, a Business Actor must fulfil the basic requirements, namely Spatial Utilisation Activity Conformity (Kesesuaian Kegiatan Pemanfaatan Ruang or “KKPR”), Environmental Approval (“PL”), and Building Approval (Persetujuan Bangunan Gedung or “PBG”) and Certificate of Function Worthiness (Sertifikat Laik Fungsi or “SLF”), unless otherwise provided for under Article 10.

Spatial Utilisation Activity Conformity (KKPR)

Article 11 stipulates that Spatial Utilisation Activity Conformity (“KKPR”) comprises KKPR Confirmation and KKPR Approval. KKPR Confirmation is issued automatically through the Online Single Submission (“OSS”) System if the business activity location conforms to the Detailed Spatial Plan (Rencana Detail Tata Ruang or “RDTR”) that has been integrated with the OSS System. Meanwhile, KKPR Approval is granted where an RDTR is not yet available or has not yet been integrated with the OSS System, through the stages of registration, document examination, assessment, and issuance of approval. At the registration stage, the Business Actor must submit information including the location coordinates, land area, type of business activity, building floor plan, and technical plans. This Regulation stipulates a Non-Tax State Revenue (“PNBP”) tariff of Rp0.00 for the issuance of KKPR Approval.

The time limits for completing KKPR Approval at each stage are as follows:

Environmental Approval

Environmental Approval (“PL”) must be obtained for every business and/or activity that has an environmental impact and must comply with the laws and regulations governing environmental protection and management.

Building Approval and Certificate of Function Worthiness

Articles 27 through 47 of IKN Authority Regulation 10/2026 govern the administration of Building Approval (“PBG”) and Certificates of Function Worthiness (“SLF”), from the applicable requirements and technical examination stages to issuance and utilisation of buildings. PBG and SLF are granted after the Business Actor has obtained Spatial Utilisation Activity Conformity (“KKPR”) or Environmental Approval (“PL”). Nevertheless, the business licensing (“PB”) process may proceed in parallel.

The principal provisions concerning PBG and SLF are as follows:

PB without Issuance of Basic Requirements

Article 48 governs business activities conducted in buildings or shared commercial and/or service complexes, namely shopping centres, modern and traditional markets, office buildings, rest areas, public transport infrastructure, hospitals, and vertical housing. Business Actors operating within such premises use the KKPR, PL, PBG, and SLF issued in the name of the building manager or owner. The requirements are a valid lease agreement, the NIB of the Business Actor and the NIB of the building owner, and basic requirement documents in the name of the manager. Verification must be completed within no more than 3 days, as provided under Article 49. For buildings managed by the Authority or ministries/agencies, the building owner's NIB and the basic requirements are exempted as part of efforts to establish the initial urban ecosystem, with such exemption evidenced by a cooperation agreement. KKPR is not required for additional activities, capacity expansion, or integrated activities undertaken by the same Business Actor within the same site as an existing business. Supporting business activities may use the KKPR and PL of the principal activity, but must still apply for PBG and SLF if a building is required.

PB to Support Business Activities (PB UMKU)

PB UMKU is applied for by selecting the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) through the OSS System and is required for product distribution, operational eligibility, product/service standardisation, and/or other matters facilitating business operations, as stipulated in Article 53. The OSS System sends a notification to the development control work unit, and the relevant sectoral technical unit conducts the verification.

Business Scale and Investment

Article 55 paragraphs (4)–(5) establishes the criteria for business scale. The value of land and buildings is excluded from the calculation.

Article 55 paragraph (7) provides that these criteria do not apply to domestic investment in the property, accommodation, agriculture, plantation, livestock, and aquaculture sectors.

Article 56 governs foreign investment (Penanaman Modal Asing or “PMA”). PMA constitutes a large-scale business with an investment exceeding Rp10 billion, excluding land and buildings, for each five-digit KBLI business field per project location, subject to certain exceptions in the calculation (wholesale trade, food and beverages, construction, and industry). For property, accommodation, agriculture, plantation, livestock, and fisheries, the investment value includes land and buildings. PMA established as a limited liability company must place capital of at least Rp2.5 billion per company. The placed capital may not be transferred out of the company's account for a minimum period of 12 months, except for the purchase of assets, building construction, or operational purposes. This commitment is made by way of a self-declaration, and violations are subject to administrative sanctions.

Foreign Workers (TKA)

Business Actors may employ foreign workers (Tenaga Kerja Asing or “TKA”) for certain positions (Article 58 paragraph (1)). The plan to employ TKA is submitted through the OSS System, after first obtaining a recommendation from the Head through the work unit responsible for socio-cultural affairs and community empowerment. The recommendation serves as the basis for approval of the TKA employment plan for a period of 10 years, which may be extended. Business Actors employing TKA, including those working on strategic government-owned projects in IKN, are exempt from the obligation to pay the compensation fund for the employment of TKA until 2035.

Non-Business Licensing and Non-Licensing Services

Article 59 stipulates that Non-Business Licensing applies to activities that are not intended for commercial purposes or are not covered by the Online Single Submission (“OSS”) System. Applications may be submitted by individuals, business entities, legal entities, government agencies, or community groups. Types of Non-Business Licensing include Spatial Utilisation Activity Conformity (“KKPR”), Environmental Approval (“PL”), Building Approval (“PBG”), Certificate of Function Worthiness (“SLF”), and other licences within the authority of the IKN Authority.

Non-Business Licensing covers activities with certain characteristics, including:

• construction or use of private residences;

• construction or use of places of worship;

• activities of social or educational foundations;

• activities funded through the State Budget (Anggaran Pendapatan dan Belanja Negara or “APBN”) or Regional Budget (Anggaran Pendapatan dan Belanja Daerah or “APBD”); and

• corporate social responsibility activities.

Applications for Non-Business Licensing are processed through the IKN Authority's Electronic System. Meanwhile, Article 60 stipulates that Non-Licensing Services constitute administrative services outside the scope of Non-Business Licensing, which are also provided through the IKN Authority's Electronic System. Types of Non-Licensing Services include:

1. Recommendations;

2. Facilitation;

3. Cooperation agreements;

4. Cards or identity documents;

5. Certificates; and

6. Other services in accordance with applicable provisions.

Consultation Services, Reporting, and Force Majeure

Article 62 stipulates that consultation services include the provision of information and the handling of complaints, either online or in person. Business Actors or Applicants intending to use land under the management rights of the Authority must first consult on spatial planning, investment and land potential, design and building plans, and key performance indicators. The resulting documents comprise land allocation documents, spatial planning information packages and plot planning guidelines, as well as preliminary design and building plan approvals, which constitute licensing requirements in IKN. The senior high-ranking official at the madya level responsible for development control must report to the Head every 3 months, setting out the number of licences issued, as well as any obstacles and recommendations. If the OSS System or Electronic System becomes inoperative due to force majeure as determined by the Head, services shall be provided offline/manually. Once the force majeure event has ended, Business Actors are required to re-enter their data into the system.

Transitional Provisions

Article 66 of IKN Authority Regulation 10/2026 stipulates that Risk-Based Business Licensing (“PBBR”), Non-Business Licensing, and Non-Licensing applications that have been submitted and remain under process when IKN Authority Regulation 10/2026 comes into force shall continue to be processed in accordance with the provisions of IKN Authority Regulation 10/2026. Accordingly, pending applications shall continue to be processed by reference to the provisions set out in this Regulation.

Closing

IKN Authority Regulation 10/2026 governs the integrated provision of licensing services in the Nusantara Capital City, encompassing Risk-Based Business Licensing (“PBBR”), Non-Business Licensing, and Non-Licensing Services, including basic requirements, issuance procedures, service timelines, and the allocation of authority. These provisions cover the simplification of licensing processes based on the risk level of business activities, the integration of services through electronic systems, and the provision of consultation services for Business Actors and Applicants.

For Business Actors intending to conduct activities in IKN, understanding the applicable types of licences and requirements is essential to ensure compliance with the prescribed provisions. In addition to fulfilling the basic requirements, Business Actors must pay attention to sector-specific regulations, obligations to comply with technical standards, and specific requirements relating to investment, the employment of foreign workers, and the utilisation of buildings.