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NIB in the Business Licensing System (OSS)

The Business Identification Number (NIB) in the context of business licensing is an identification number issued through the Online Single Submission (OSS) system, managed by the Ministry of Investment/BKPM. This NIB serves as the legal identity of a business entity and replaces various administrative documents such as the Company Registration Certificate (TDP), Importer Identification Number (API), and customs access.

The licensing NIB is valid nationwide and serves as the entry point to the risk-based licensing system (OSS RBA). In this system, the NIB indicates that a business has been officially registered and can immediately operate if it is categorized as a low-risk business. For medium- and high-risk businesses, the NIB is accompanied by the obligation to obtain a Standard Certificate or additional technical approvals from the relevant authorities.

The issuance of NIB was first introduced through the OSS 1.0 system in 2018 as part of the government’s efforts to simplify and accelerate the business licensing process in Indonesia. OSS 1.0 integrated licensing services from various ministries and agencies into a single online platform. At this initial stage, the NIB functioned as a business identity while simultaneously replacing several administrative documents such as the Company Registration Certificate (TDP), Importer Identification Number (API), and customs access.

However, over time, the OSS 1.0 system faced various challenges, such as a lack of data integration between agencies, slow verification processes, and limitations in handling the diversity of business types. To address these challenges, the government introduced an upgraded version, OSS 1.1, which brought several technical improvements and enhanced system stability. Nevertheless, its approach was still based on sectoral licensing and had not yet adopted a risk-based framework.

The biggest transformation came with the launch of OSS RBA (Risk-Based Approach) in August 2021. OSS RBA introduced a paradigm shift from business-type-based licensing to risk-level-based licensing. With this approach, the types of permits and obligations that business actors must fulfill are adjusted according to the level of risk of their activities—low, medium, or high. This system makes the NIB the main entry point and automatically adjusts additional requirements such as standard certificates or technical permits. OSS RBA enhances speed, transparency, and legal certainty in the business licensing process in Indonesia.

NIB in Land Affairs (Parcel Identification Number)

Unlike the NIB in the business licensing system, in the context of land affairs the term NIB refers to the Parcel Identification Number. This is a unique identification number assigned by the National Land Agency (BPN) to each parcel of land that has been officially registered in the national land system. This NIB is specific to each plot and serves as the land’s administrative “fingerprint.”

The Parcel Identification Number can be found in various land-related documents such as land certificates, Land Registration Information Letters (SKPT), and land parcel maps. Its presence is an important component in ensuring that land data has been digitized and recorded in the national database managed by the Ministry of Agrarian Affairs/National Land Agency (ATR/BPN).

Unlike the business NIB, which serves as the legal identity of a business entity, the land NIB is the physical and legal identity of a parcel of land. This number reflects the land’s spatial and administrative existence, including its geographic location, boundaries, and size.

In addition, the land NIB also records other important information such as the name of the rights holder, the type of land rights (for example, Freehold Title or Building Use Right), and the legal status of the land—whether it is active, in dispute, blocked, or has other annotations. This information is crucial as a reference in processes such as buying and selling, mortgaging, inheritance, and land development.

In practice, the land NIB also plays an important role in digital land information systems such as the Sentuh Tanahku application and the BHUMI portal. Using this number, the public, notaries, and other relevant parties can quickly and accurately track, verify, and match land data. The existence of the land NIB provides transparency and efficiency in modern land administration.

Fundamental Differences

The Business Identification Number (NIB) in the OSS system and the Parcel Identification Number (also abbreviated as NIB) in the land affairs domain are two entirely different things in terms of function and context. Although both are official identification numbers issued by government institutions, their purposes and uses lie in very different areas. This similarity in abbreviation often causes confusion, making it important to understand their fundamental differences.

The NIB in the OSS system is issued by the Ministry of Investment/BKPM through the Online Single Submission (OSS) platform. This number serves as the legal identity of a business entity and is the main gateway to access various business licenses in Indonesia. With an NIB, business actors can apply for operational permits, register for social security programs, and access environmental permits and Spatial Utilization Activity Conformity (KKPR). This NIB is fully managed within the risk-based OSS ecosystem (OSS RBA).

Meanwhile, the NIB in land affairs stands for Parcel Identification Number, which is issued by the National Land Agency (BPN) or the Ministry of Agrarian Affairs and Spatial Planning (ATR). Its function is to serve as the administrative and physical identifier for each registered parcel of land. The land NIB is not related to business activities but is used for purposes such as verification, validation of ownership rights, land sale and purchase transactions, and spatial data integration through land information systems such as Sentuh Tanahku or BHUMI.

The differences between the two can be seen from several key aspects. From the institutional side, the OSS NIB is managed by BKPM/Ministry of Finance, while the land NIB is managed by ATR/BPN. In terms of its primary function, the OSS NIB is used for business identity and legality, whereas the land NIB is used for the legality and administration of land parcels. Their management systems are also different—OSS is digital and integrated with other business permits, while the land NIB is still largely managed through location-based and physical document–based land administration systems (though it is gradually moving toward digitalization).

In other words, the OSS NIB is used when someone wants to legally operate a business, while the land NIB is used when someone wants to ensure the legality of rights over a parcel of land. Both operate within different systems but complement each other in the context of property development or investment. For example, to run a property-based business such as a hotel, restaurant, or resort, a business owner must have both types of NIB—one for the legality of the business entity and the other for the validity of land ownership or control. Understanding this distinction helps prevent administrative errors and streamlines legal and licensing processes.

The Relationship Between the Two

Although the Business Identification Number (NIB) from OSS and the Parcel Identification Number (NIB) in land affairs have different functions and scopes, they are closely related in business practice. Most business activities, especially those in the property, tourism, or industrial sectors, require land as a key component. Therefore, land legality becomes an essential foundation for establishing and operating a business legally and sustainably.

In the business licensing process through OSS, one of the key steps is fulfilling the Spatial Utilization Activity Conformity (KKPR) requirement. KKPR ensures that the business location complies with the local spatial planning regulations. However, to obtain KKPR, business owners must first prove the legality of the land to be used. This is where the role of the land NIB becomes crucial—land documents such as land certificates and parcel NIBs are required as the basis for verifying the legal and administrative status of the land parcel.

Thus, even if a business owner already has an OSS NIB, they must still ensure that the land parcel being used has a valid, active, and registered land NIB. The integration between business legality and land legality is crucial to prevent legal disputes, speed up subsequent licensing processes, and ensure smooth business operations in the long term. Incompleteness on either side could risk delaying or even canceling the development and investment process.

Conclusion

NIB in OSS and NIB in land affairs are two different identification systems serving different functions—business and land. However, they cannot be separated in the context of development and investment. Business legality must go hand in hand with land legality. Understanding their differences and interconnections is key to ensuring that business and property processes can proceed safely, orderly, and in compliance with the law.