Jakarta (ANTARA) - The Ministry of Micro, Small, and Medium Enterprises (MSMEs) is encouraging entrepreneurs to secure a business identification number (NIB) to unlock access to government business support programs.
The ministry's Deputy for Medium Enterprises, Bagus Rachman, explained that the NIB serves as an official identity that establishes a business's legality and classification.
"With an NIB, they can qualify for government affirmative action programs," he told the press in Jakarta on Wednesday.
According to Rachman, securing an NIB also helps entrepreneurs access financing, as their business status and legality are officially registered.
Furthermore, he noted that an NIB is a key requirement for businesses looking to expand, including entering export markets or partnering with large corporations as part of the industrial supply chain.
Rachman added that the NIB has now become a foundational business requirement, effectively replacing several licensing documents that previously had to be processed separately.
Regarding the low number of businesses with an NIB, he suspected that some business owners remain concerned that securing an NIB would automatically tie them to tax obligations.
However, he explained that holding an NIB does not automatically trigger a tax burden, pointing out that MSMEs with an annual turnover of up to Rp500 million (approximately US$28,110) are exempt from final income tax or qualify for a zero-percent rate.
According to data from the Ministry of Investment and Downstreaming, the number of businesses that have secured an NIB reached approximately 16 million in 2025.
This figure remains low compared to the total number of MSMEs in Indonesia, which is estimated at around 56 million units.
To encourage more MSMEs to secure business legality, the Ministry of MSMEs is currently developing the SAPA UMKM platform to integrate various services across ministries and agencies.
Rachman noted that the move will motivate business owners to secure an NIB, as various business development programs and services will eventually be interconnected within a single ecosystem.
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Translator: Shofi Ayudiana, Raka Adji Editor: Azis Kurmala Copyright © ANTARA 2026
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