Minister of Transportation Regulation Number PM 1 of 2026 Tightens Risk-Based Licensing and Digital Supervision in the Transportation Sector

Introduction

On January 22, 2026, the Minister of Transportation issued Regulation of the Minister of Transportation Number PM 1 of 2026 on Business Activity Standards and/or Product/Service Standards in the Implementation of Risk-Based Business Licensing in the Transportation Sector ("Permenhub 1/2026"), which took effect on February 2, 2026. Permenhub 1/2026 establishes business activity standards and product/service standards for the implementation of risk-based business licensing in the transportation sector.

The Regulation implements Article 5 paragraph (7) of Government Regulation Number 28 of 2025 on the Implementation of Risk-Based Business Licensing by designating business standards as the primary reference for the issuance and supervision of risk-based business licensing in the transportation sector.

Comparison

Permenhub 1/2026 repeals and replaces Regulation of the Minister of Transportation Number PM 12 of 2021 on Business Activity and Product Standards in the Implementation of Risk-Based Business Licensing in the Transportation Sector ("Permenhub 12/2021"), as amended by Regulation of the Minister of Transportation Number PM 13 of 2023 on the Amendment to Regulation of the Minister of Transportation Number PM 12 of 2021 on Business Activity and Product Standards in the Implementation of Risk-Based Business Licensing in the Transportation Sector ("Permenhub 13/2023"). The following is a comparison table between Permenhub 1/2026, Permenhub 12/2021, and Permenhub 13/2023:

Key Provisions

Absolute Integration of the Business Licensing System

Article 2 stipulates that businesses must implement risk-based business licensing in the transportation sector through the electronically integrated business licensing system (Online Single Submission / "OSS"). This provision mandates the use of OSS in processing and updating business licensing data.

Land Transportation Sector Business Activity Standards

Annex I Letter A governs business activity standards for the land transportation sub-sector, including standards for road transportation and its supporting businesses. These standards encompass the fulfillment of service aspects and vehicle operational roadworthiness, along with other technical and administrative requirements. For business entities under road transportation KBLI, including inter-city inter-provincial (AKAP) transportation, tourism transportation, and special rental transportation, Annex I Letter A sets forth operational technical requirements that include, among others:

1. Owning at least 5 (five) vehicles, evidenced by copies of the Vehicle Registration Certificate (STNK), Vehicle Type Test Registration Certificate (SRUT) (for new vehicles), proof of passing periodic tests, vehicle photos, and the installation of an IP Global Positioning System on the vehicles;

2. Providing photos and layout plans of the vehicle storage facility (pool);

3. Owning and/or collaborating with third parties capable of providing motor vehicle maintenance facilities;

4. Preparing a business plan for the public transportation company;

5. Implementing a Safety Management System; and

6. Possessing employment insurance cards for the vehicle crew.

Sea Transportation Sector Business Activity Standards

Business activity standards for the sea transportation sub-sector are governed in Annex I Letter B, which covers shipping companies, ship agencies, and port service businesses such as loading and unloading. These provisions establish technical and administrative requirements according to the business activity classification. For sea transportation and port service KBLI, the standards require, among others:

1. Occupying a business premise, whether owned or leased, supported by a Business Identification Number and an Approval of Conformity of Spatial Utilization Activities or a Statement Letter from Micro or Small Enterprises regarding spatial planning;

2. Employing at least 1 (one) expert holding a minimum of a diploma III in administration, nautical studies, or technical aspects of commercial shipping, shipbuilding, or sea transportation, evidenced by a legalized copy of their diploma from the competent authority and an appointment letter as an employee or an employment contract/agreement;

3. Demonstrating ownership of an Indonesian-flagged, seaworthy vessel through a gross deed of the ship, certificate of nationality, measurement certificate, and a valid ship safety certificate;

4. Implementing an e-ticketing system for passengers and/or goods transported on the vessel, integrated with the INAPORNET information system; and

5. Submitting an annual report of company activities to the Director General of Sea Transportation.

Air Transportation Sector Business Activity Standards

Business activity standards in the air transportation sub-sector cover commercial air transportation and its supporting activities, including airport services. Technical and administrative provisions for each business classification are detailed in Annex I Letter C. For scheduled and non-scheduled commercial air transportation KBLI and air transportation supporting activities, the established requirements include, among others:

1. Owning and operating a minimum number of aircraft in accordance with the applicable Commercial Air Transportation Business License;

2. Employing and/or managing competent aircraft personnel in an adequate ratio to operate and conduct aircraft maintenance;

3. Maintaining an organizational structure covering at least operations, maintenance, safety, and quality assurance;

4. Possessing operational organization guidelines and maintenance organization guidelines approved by the Director in charge of Airworthiness and Aircraft Operations;

5. Maintaining a safety management system manual approved by the Director in charge of Airworthiness and Aircraft Operations; and

6. Implementing an Air Transportation security program approved by the Director General of Civil Aviation.

Railway Sector Business Activity Standards

Business activity standards in the railway sub-sector cover the provision of public and specific railway facilities and/or infrastructure. The technical and administrative provisions for these business activities are set forth in Annex I Letter D. For business entities under railway KBLI, the established requirements include, among others:

1. Completing the procurement of railway facilities in accordance with operational feasibility requirements and passing the initial test, as evidenced by a test certificate;

2. Compiling systems and procedures for the operation, inspection, and maintenance of railway facilities approved by the Director General;

3. Providing railway facility crew holding Certificates of Competence, along with maintenance personnel and facility inspectors holding Certificates of Expertise;

4. Providing railway facility maintenance infrastructure; and

5. Establishing and implementing a Railway Safety Management System.

Transportation Supporting Product and Service Standards

Annex II sets forth product requirements focusing on analysis approval or certification (such as Approval of Traffic Impact Analysis Results), which must undergo document conformity assessment and/or field verification by competent officials, along with the implementation of activity reporting based on the business risk level. Fulfillment of these supporting product and service standards constitutes an inseparable part of the requirements for conducting transportation business activities.

Closing

Permenhub 1/2026 establishes business activity standards and product/service standards for the implementation of risk-based business licensing in the transportation sector with reference to Government Regulation Number 28 of 2025 and reinforces the use of the OSS system for licensing processes and administrative compliance. Through Annex I and Annex II, the Regulation governs technical, operational, and human resource competency parameters, as well as certification requirements for businesses in the land, sea, air, and railway transportation sub-sectors, including providers of supporting products and services. Following the repeal of previous provisions, businesses must ensure compliance with applicable business activity standards, data updating, and reporting requirements under the risk-based business licensing system, as non-compliance may result in supervisory measures and administrative sanctions in accordance with prevailing laws and regulations.