Source: BP Batam, September 25, 2026. Percentages calculated from the reported figures.

One particularly important finding is that 560 applications, or approximately 47.4% of the total, were either missing requirements or returned for correction.

For companies preparing business applications, this highlights the importance of submitting accurate, consistent, and complete information.

Nevertheless, these figures must be interpreted carefully.

The 423 applications classified as handled or issued do not necessarily represent 423 approved permits. Likewise, applications returned for correction should not automatically be considered rejected.

The data represents the reported status of applications at a particular point in time, not a final approval or rejection rate.

What does this mean for investors?

The licensing statistics point to three practical considerations:

• Document readiness matters. Missing information and supporting documents can create additional administrative steps.

• Regulatory accuracy matters. Applications must correspond to the actual business activities and applicable requirements.

• Verification remains necessary. Digital submission through OSS does not eliminate regulatory review or technical assessments.

For investors working toward factory construction, commercial operations, or market entry, these considerations should become part of the early project planning process.

2. Why Business Licensing Matters More as Batam's Investment Grows

Batam's increasing investment activity provides an important context for understanding the licensing figures.

On August 20, 2026, BP Batam announced that the island had recorded Rp38.97 trillion in investment realization during the first half of 2026, based on its bottom-up calculation methodology.

Source: BP Batam, August 15 and August 20, 2026. The bottom-up and LKPM figures use different measurement bases and should not be treated as interchangeable.

The expanding investment environment presents opportunities for businesses involved in manufacturing, logistics, industrial services, digital infrastructure, and other supporting sectors.

However, investment realization and licensing readiness are closely connected from an operational planning perspective.

A manufacturing investor, for example, may successfully establish a company and secure industrial premises but still need to complete environmental, building, or sector-specific licensing requirements before certain activities can begin.

Similarly, a logistics or trading company operating within Batam's Free Trade Zone may need to comply with additional goods movement and customs-related procedures.

The commercial opportunity may be attractive, but regulatory readiness helps determine how efficiently an investment project can proceed.

3. Indonesia's Updated OSS Licensing Framework in 2026

Indonesia's business licensing framework has undergone important regulatory changes.

Government Regulation No. 28 of 2025

Government Regulation No. 28 of 2025 (PP 28/2025) replaced Government Regulation No. 5 of 2021 and updated Indonesia's risk-based business licensing framework.

Under this system, licensing requirements depend on the nature of the business activity and its assessed risk level.

The four principal risk classifications are:

The precise requirements depend on the relevant KBLI classification and sector-specific regulations.

This framework is particularly important for foreign investors establishing a PT PMA (foreign-owned limited liability company) in Indonesia.

Obtaining a Business Identification Number (NIB) does not automatically mean that every operational requirement has been fulfilled.

Additional permits, verified standards, or supporting approvals may still be necessary.

Official reference: Government Regulation No. 28/2025 – BKPM Legal Documentation.

Government Regulation No. 25 of 2025

For businesses operating in Batam's Free Trade and Free Port Zone, Government Regulation No. 25 of 2025 also plays an important role.

The regulation amended Government Regulation No. 41 of 2021 concerning the administration of Free Trade and Free Port Zones.

The changes were intended to strengthen governance, regulatory certainty, and licensing procedures within designated free trade zones.

In May 2026, BP Batam also reported that its licensing authority covered 16 strategic sectors and more than 2,400 licensing types.

The authority announced a target of completing certain Environmental Approval procedures within 29 working days, subject to the applicable process and document requirements.

This is a service target rather than a guaranteed completion period for every application.

For investors, these reforms may improve administrative coordination, but they do not remove the responsibility to comply with relevant regulations.

4. KBLI 2025: Another Important Licensing Consideration

One of the most relevant regulatory developments for businesses in 2026 is the implementation of KBLI 2025.

KBLI, or Klasifikasi Baku Lapangan Usaha Indonesia, is Indonesia's official classification system for economic activities.

The revised KBLI 2025 framework, established through BPS Regulation No. 7 of 2025, updated classifications to better reflect evolving business models, including digital activities and emerging industries.

In March 2026, the Ministry of Investment and Downstream Industry/BKPM announced joint implementation guidance covering the transition to KBLI 2025 across OSS and the Ministry of Law's AHU system.

Why is KBLI accuracy important?

A company's KBLI classification helps determine:

• Whether its business activities correspond to the registered corporate purposes.

• Which risk classifications and business licenses apply.

• Whether additional sector-specific approvals are required.

• Whether the intended location is suitable for the proposed activities.

For companies expanding into new business activities, an incorrect or outdated classification could complicate regulatory assessment.

However, existing businesses should not assume that implementing KBLI 2025 requires obtaining entirely new permits.

Indonesia's Central Statistics Agency (BPS) confirmed in April 2026 that previously issued business permits generally remain valid. Where an update involves only numerical classification changes without a substantive change in business activities, conversion can be performed automatically through the relevant systems.

Substantive changes to business purposes or activities may require further adjustments through OSS and AHU.

For investors, reviewing the relationship between actual business activities, corporate documents, and registered KBLI classifications is an important preparation step.

5. Common Licensing Readiness Issues Businesses Should Anticipate

BP Batam's application statistics do not provide a detailed list of the causes behind every incomplete or returned application.

Nevertheless, companies can reduce avoidable licensing risks by reviewing several common areas before submitting applications.

A. Inaccurate business classification

A company may select a KBLI code that does not fully represent the activities it intends to conduct.

This can affect the relevant licensing pathway and associated requirements.

For example, a company importing industrial equipment for resale may face a different regulatory pathway from a company using imported machinery in its own manufacturing operations.

B. Incomplete corporate documentation

Company documents, registered business activities, shareholder information, and OSS records should be consistent.

Discrepancies may require clarification or updates before a licensing process can proceed.

C. Land-use and location suitability

A commercially attractive industrial or warehouse location is not automatically suitable for every proposed business activity.

Investors should assess spatial planning requirements, lawful land use, and relevant environmental obligations before committing significant capital.

D. Sector-specific permits

Certain industries may require additional authorizations or technical verification beyond the initial NIB.

Depending on the activity, requirements can involve manufacturing standards, environmental approvals, product registrations, trading permissions, or business-supporting licenses (PB UMKU).

E. Missing supporting evidence

Some applications require technical information, declarations, environmental documents, facility details, or other supporting materials.

Where verification is required, the necessary evidence should be prepared in advance to reduce avoidable correction cycles.

These are practical licensing preparation considerations, not an official breakdown of the 560 incomplete or returned applications reported by BP Batam.

6. OSS, IBOSS, and BP Batam: Understanding the Licensing Process

Foreign investors entering Batam may encounter several licensing institutions and electronic systems.

Understanding their functions is particularly important because Batam operates under a specific Free Trade and Free Port Zone framework.

OSS — Online Single Submission

OSS is Indonesia's national integrated electronic system for risk-based business licensing.

It supports NIB registration, business licensing procedures, and other applicable regulatory requirements.

IBOSS — Indonesia Batam Online Single Submission

IBOSS is BP Batam's electronic licensing system, integrated with the national OSS framework for relevant licensing services within the Batam Free Trade and Free Port Zone.

BP Batam PTSP — One-Stop Integrated Service Centre

BP Batam's PTSP facilitates licensing and administrative services within its authority, including various business, land-related, and goods movement requirements.

These systems and services should be understood as complementary rather than automatically interchangeable.

For investors, the appropriate sequence depends on the actual business activities, project location, and applicable regulatory authority.

Official reference: BP Batam PTSP – Indonesia Batam Online Single Submission (IBOSS).

7. A Practical Business Permit Readiness Checklist for 2026

Before submitting an OSS licensing application, investors can use the following checklist to identify issues that may require attention.

[ ] Verify the appropriate Indonesian company structure and corporate legal documentation.
[ ] Confirm the correct KBLI 2025 classification for each planned business activity.
[ ] Identify the risk classification and applicable licensing requirements in OSS.
[ ] Review project location, spatial planning, and land-use requirements.
[ ] Determine whether environmental, building, or technical approvals are required.
[ ] Identify relevant PB UMKU and sector-specific permits.
[ ] Check whether Batam FTZ-specific licensing or goods movement requirements apply.
[ ] Prepare consistent supporting documents and monitor application verification.
[ ] Review ongoing compliance obligations, including applicable LKPM reporting.

Completing these checks does not guarantee license issuance. However, it can help businesses identify missing requirements earlier and organize their application processes more effectively.

For larger investment projects, licensing readiness should also be aligned with construction schedules, procurement, financing commitments, recruitment plans, and proposed operational launch dates.

8. What the 2026 Licensing Data Means for Foreign Investors

The significance of Batam's licensing statistics extends beyond administrative processing.

For foreign investors evaluating Batam as a manufacturing, distribution, or regional operating base, regulatory preparation has a direct relationship with project execution.

Consider three potential investment scenarios.

Manufacturing investment

An international manufacturer planning to establish a production facility in Batam should review corporate registration, industrial licensing, land-use compatibility, environmental obligations, and any sector-specific standards before beginning regulated operations.

Trading and logistics expansion

A trading or logistics company should assess how its commercial activities relate to OSS licensing, import and export requirements, customs procedures, and Batam's FTZ-specific framework.

New foreign-owned business establishment

A foreign investor establishing a PT PMA should ensure that company incorporation documents, KBLI classifications, OSS records, proposed operations, and relevant approvals are aligned.

Across all three scenarios, early regulatory preparation may help limit administrative rework and improve project planning.

Business licensing should therefore be treated as part of investment due diligence, not merely a task to complete after the commercial strategy has been finalized.

9. How Accura Can Support Business Licensing Readiness in Batam

For foreign businesses, navigating Indonesia's licensing environment may require coordination between company registration, business classification, OSS procedures, and applicable sector-specific requirements.

Accura Indonesia Agraraya provides corporate and regulatory support services for businesses establishing or expanding operations in Indonesia.

Its published service portfolio includes company incorporation, business licensing, corporate legal support, and ongoing corporate compliance administration.

Depending on the company's needs, Accura can assist with:

• Company establishment and corporate structuring: Supporting PT PMA or local company establishment based on applicable requirements.

• KBLI and OSS readiness: Reviewing registered activities and identifying relevant licensing requirements.

• Business licensing coordination: Assisting with application preparation and the administrative process for applicable approvals.

• Regulatory compliance: Helping businesses identify ongoing corporate, licensing, and investment reporting obligations.

• Expansion planning: Supporting companies that intend to add business activities, open new facilities, or expand operations in Indonesia.

Professional support does not replace government verification or guarantee permit approval. Its value lies in helping businesses prepare, coordinate, and manage their regulatory processes more effectively.

Conclusion: Licensing Readiness Is an Investment Priority in 2026

Batam's 1,182 OSS licensing applications highlight an important aspect of the island's evolving investment environment.

As Batam attracts industrial activity and works to improve licensing services, businesses must also take responsibility for ensuring that applications meet the relevant regulatory requirements.

The 560 applications recorded as missing requirements or returned for correction demonstrate why accurate documentation and early compliance review deserve attention.

At the same time, regulatory developments such as PP 28/2025, PP 25/2025, and the KBLI 2025 transition make it increasingly important for businesses to remain informed about applicable licensing procedures.

For companies planning to invest in Batam, the priority is not simply to submit an application as quickly as possible.

It is to prepare the right information, understand the relevant requirements, and establish a licensing strategy that supports the intended business operations.

CTA — Planning to Establish or Expand Your Business in Batam?

Before you submit your next OSS licensing application, make sure your business is properly prepared.

Whether you are establishing a foreign-owned company (PT PMA), launching a manufacturing operation, expanding your business activities, or reviewing existing permits, Accura Indonesia Agraraya can help you navigate Indonesia's business licensing and corporate compliance requirements.

From company incorporation and KBLI review to OSS licensing coordination and regulatory support, Accura helps businesses build a stronger foundation for operating in Indonesia.

Start with a Business Licensing Readiness Consultation.

Visit Accura Indonesia to speak with our corporate services team and discuss the licensing requirements for your next investment project.

Plan early. Prepare correctly. Invest in Batam with confidence.