Indonesia Enacts Government Regulation on Blockchain Business Licensing (PP No. 28/2025)

 In a landmark regulatory development, the Indonesian government has officially enacted Government Regulation (Peraturan Pemerintah/PP) Number 28 of 2025, focusing on "Risk-Based Business Licensing Implementation." This policy is a game-changer for blockchain technology, crypto businesses, and Web3 startups across the country.


Key Points of PP No. 28/2025

The regulation introduces a risk-based licensing model, which significantly simplifies the bureaucratic process for startups, especially in the blockchain, DeFi (Decentralized Finance), NFT (Non-Fungible Token), and Web3 sectors.

Rather than going through extensive and complex permit systems, technology developers in these fields now only need to register via the OSS-RBA platform (Online Single Submission – Risk-Based Approach). After registration, they can obtain a Business Identification Number (Nomor Induk Berusaha – NIB), which grants them formal recognition to operate.

This regulatory model evaluates the level of risk associated with business activities and tailors licensing requirements accordingly. Most blockchain-related development activities, such as smart contract services, node infrastructure providers, and software creation, are classified as low to medium risk. As a result, these companies are exempt from overly complicated initial licensing procedures.


Opportunities and Implications

This is a major milestone for Indonesia’s digital economy. By formally recognizing blockchain-related businesses within the national legal framework, the government aims to:

  • Accelerate digital innovation
  • Attract local and foreign blockchain investments
  • Position Indonesia as a Web3-friendly hub in Southeast Asia

At the same time, the regulation serves as a formal warning to blockchain and crypto startups: although the process is now easier, they are expected to maintain full compliance with risk-based standards. Non-financial blockchain ventures that misuse this freedom may face scrutiny or legal consequences if they bypass risk protocols.


Who Benefits?

  • Blockchain software developers
  • Smart contract service providers
  • Web3 infrastructure platforms (e.g., decentralized nodes)
  • NFT marketplaces
  • Crypto platforms (non-financial use cases)

For these sectors, the barrier to entry has been drastically lowered a stark contrast to previous years where startups were often stifled by red tape and legal ambiguity.


Conclusion

The official enactment of PP No. 28/2025 marks a new era for blockchain in Indonesia. With clearer guidelines, simplified processes, and a focus on innovation, the government has demonstrated its commitment to supporting digital transformation while maintaining regulatory integrity. For startups, this is a golden opportunity to grow and innovate legally within one of Southeast Asia’s most dynamic tech landscapes.

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