
Government Regulation No. 5 of 2021 (GR 5/2021), as an implementing regulation of the Omnibus Law, introduces new criteria for issuing business licenses based on the assessment of 'business risk level.' This assessment is determined by the potential hazards a business may create.
The government will conduct a risk analysis that includes:
1. Identification of business activities.
2. Assessment of the hazard level.
3. Assessment of the likelihood of hazards occurring.
4. Determination of the risk level and business scale rating; and
5. Determination of the type of business license.
Businesses will be classified into four risk categories: low, medium-low, medium-high, and high. The lower the risk, the simpler the licensing requirements will be.
The sectors that will be impacted by this risk analysis include:
- Maritime affairs and fisheries
- Agriculture
- Environment and forestry
- Energy and mineral resources
- Nuclear energy
- Industry
- Trade
- Public works and housing
- Transportation
- Health, medicine, and food
- Education and culture
- Tourism
- Religious affairs
- Post, telecommunications, broadcasting, and electronic systems
- Defense
- Employment




