Types of Industrial Business Licenses

An industrial business license is usually referred to as IUI (Izin Usaha Industri). Generally there are three types of IUI, namely:

  1. IUI for small businesses
  2. IUI for medium businesses
  3. IUI for large businesses

Securing an Industrial Business License

An IUI is generally granted to businesses that are located in industrial areas. There are however several exceptions to this general rule. The Government can decide to issue an IUI to businesses that do not have their business locations in industrial areas in case:

  1. The business location is in a region or city which does not have an industrial area
  2. The business location is in a region or city, in case the industrial area is already full
  3. The IUI for small or medium business does not harm the environment
  4. The business uses special materials or the business requires a special location

Once the company meets one of the above location requirements, it can apply for the Industry Business License. Such license is valid as long as the company conducts its business activities based on the license.

Expansion of Industrial Business License

In case industrial companies wish to expand their business license, they require to secure a expansion license. Moreover in case the expansion includes utilization of natural resources, the company needs to conduct an environmental audit in order to check the impact of the business activities on the environment.

This column is provided by PNB Law Firm Jakarta