According to Article 2 Paragraph (1) of Regulation of the Minister of Trade 46/9/2009, trading companies that wish to start their business activities must have a Business License (SIUP). The scale of the company’s wealth determines the issuance of the SIUP, including small SIUP, medium SIUP, and large SIUP.

Business actors in trade can be individuals who are Indonesian citizens, legal entities, or non-legal entities established and operating within the legal territory of the Republic of Indonesia that engage in trading activities. Trade is regulated in Article 1 paragraph 1 of the Trade Law and Article 1 paragraph 1 of Minister of Trade Regulation 36/9/2007.

In Indonesia, the Job Creation Law regulates various strategic policies regarding job creation, including enhancing the investment ecosystem and business activities as well as facilitating ease of doing business. One way to improve this ecosystem is by implementing risk-based business licensing, which is granted based on the determination of risk levels and the ranking of the scale of business activities. The implementing regulations of the Job Creation Law, such as Government Regulation 5/2021 and BKPM Regulation 4/2021, govern the business licensing system. However, it is important to note that Trade Minister Regulation 36/9/2007 and its amendments regulate the licensing of Trading Business Licenses (SIUP) for trading activities before Government Regulation 5/2021 and BKPM Regulation 4/2021 came into effect.

To establish business licensing, the level of risk referred to consists of low, medium, and high business risks as defined by the Indonesian Standard Industrial Classification (KBLI) for the activities or fields of business that will be undertaken by entrepreneurs. Business activities with a medium level of risk are divided into low medium and high medium categories. For businesses with a low level of risk, entrepreneurs must have an NIB, which serves as their identity and legality to conduct business. For businesses with a medium-low and medium-high level of risk, entrepreneurs must possess an NIB and a Standard Certificate, and for businesses with a high level of risk, entrepreneurs must have licenses in the form of an NIB and permits.

Following the enactment of Government Regulation 5/2021, all businesses must have a Business Identification Number (NIB). This is necessary because the NIB serves as the identity of business actors and functions as an import identification number, customs access rights, registration for business actors’ participation in health and employment social security, and mandatory employment reporting for the first period.

Although the NIB must be owned, the business license in the form of SIUP held by the parents does not automatically become invalid. This is based on Article 562 letter a of Government Regulation 5/2021, along with Article 97 paragraph (1) of BKPM Regulation 4/2021, which stipulates that business licenses that have been approved and are still valid before the enactment of Government Regulation 5/2021 and BKPM Regulation 4/2021 can still be used by business actors in their business activities. However, if business actors with valid business licenses do not yet have an NIB, they must register it through the OSS system. According to the provisions, the SIUP held by parents remains valid. However, as the successor of your parents’ business, you must register for the NIB through the OSS System.

In terms of the Trading Business License (SIUP), Article 6 paragraph 2 of Minister of Trade Regulation 36/9/2007 states that the SIUP is granted to the owner, manager, or person responsible for the trading company on behalf of the company. In this case, the name of the owner, manager, or person responsible for the trading company listed on the SIUP held by the parents is the name of the parents. Because children today are fully managing their parents’ trading companies, the company’s data has changed, which is referred to as “company changes.” According to Article 1 Number 5 of the Minister of Trade Regulation 36/9/2007, changes in company data include changes in name, form, address, name of the owner or responsible party, capital and net worth, institutional status, business activities, and main goods or services.

Article 14 paragraph (1) of Regulation of the Minister of Trade 36/9/2007 stipulates that if the name of the owner, management, or person in charge of a trading company changes, the owner, management, or person in charge must submit a Letter of Application for Business License (“SP-SIUP”), which is a license application form filled out by the trading company with company data to obtain a small, medium, or large SIUP. Therefore, trading companies that have a SIUP and have changed company data, including the person in charge, must submit an SP-SIUP to amend their business license.

Legal Basis:

1. Law Number 7 of 2014 on Trade;
2. Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation;
3. Law Number 6 of 2023 on the Establishment of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation as Law;
4. Government Regulation Number 5 of 2021 on the Implementation of Risk-Based Business Licensing;
5. Minister of Trade Regulation Number 36/M-DAG/PER/9/2007 of 2007 on the Issuance of Trade Business Licenses;
6. Minister of Trade Regulation Number 46/M-DAG/PER/9/2009 of 2009 on Amendments to the Minister of Trade Regulation of the Republic of Indonesia Number 36/M-DAG/PER/9/2007 on the Issuance of Trade Business Licenses;
7. Minister of Trade Regulation Number 39/M-DAG/PER/12/2011 of 2011 on the Second Amendment to the Minister of Trade Regulation Number 36/M-DAG/PER/9/2007 on the Issuance of Trade Business Licenses;
8. Minister of Trade Regulation Number 07/M-DAG/PER/2/2017 of 2017 on the Third Amendment to the Minister of Trade Regulation Number 36/M-DAG/PER/9/2007 on the Issuance of Trade Business Licenses;
9. Regulation of the Investment Coordinating Board Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities.

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