Starting a business is a bold endeavor that demands both courage and determination. Beyond that, every entrepreneur must ensure their enterprise complies with legal requirements — one of which is obtaining a Micro and Small Business License, known as IUMK.
Who issues the IUMK? The Micro and Small Business License (IUMK) is an official business permit granted by the OSS institution to micro and small enterprises. Let’s explore what IUMK is, its purposes, and how to secure one.
What is IUMK?
The Micro and Small Business License (IUMK) is an official document issued by the OSS institution, allowing micro and small enterprises to operate legally.
The IUMK consists of a single-page certificate that serves as both legal protection and a formal reference for business owners in running and expanding their ventures.
This document contains essential information such as the business owner’s name, type of business, address, and other details relevant to the company’s operations.
Functions and Benefits of Having an IUMK
Possessing an IUMK provides a range of crucial legal and economic advantages for micro and small entrepreneurs in Indonesia, including:
1. Proof of Business Legitimacy
Functionally, the IUMK acts as an official proof of legitimacy, affirming that your business is legally recognized and properly registered under government regulations.
Its legal foundation is Presidential Regulation No. 98 of 2014 concerning licensing for micro and small enterprises.
This regulation aims to provide legal certainty and empower business actors by creating an enabling environment for sustainable growth.
2. Simplifies Other Business Licensing Processes
An IUMK facilitates the process of applying for other business license documents required for day-to-day operations, while also opening access to government support programs. Moreover, it officially establishes that your business qualifies as an UMKM under Indonesian law.
3. Enhances Business Credibility
Having an IUMK boosts your business credibility, strengthens consumer and partner trust, and makes potential investors more confident in collaborating — as it demonstrates legal assurance and reliability.
4. Provides Legal Protection in Case of Disputes
Beyond serving as a legal formality, the IUMK functions as a strong legal safeguard, helping business owners resolve potential disputes or conflicts that may arise during operations.
5. Easier Access to Financial Support
An IUMK unlocks opportunities for funding and financial assistance from government programs and financial institutions, supporting business growth under clearer and more structured conditions.
Collectively, these advantages illustrate that the IUMK not only ensures legal compliance but also significantly contributes to business development and sustainability among Indonesia’s micro and small enterprises.
Requirements for Applying for an IUMK
Obtaining an IUMK requires fulfilling several administrative requirements. The general documents needed include:
- Applicant Identity: A valid ID card (KTP) of the business owner.
- Business Description: A brief explanation of the business type and scale.
- Business Location: The full address of the business premises.
- Declaration Letter: A signed statement agreeing to comply with applicable regulations and laws.
Once all necessary documents and business information are complete, you can apply for the license at your local district office by submitting the required forms and documentation.
Alternatively, you can apply online through the Online Single Submission (OSS) system or via Jakevo’s digital licensing service. Want to know how to create an IUMK? Continue reading below.
How to Obtain an IUMK
1. Applying for an IUMK at the District Office
To apply for an IUMK through the local district office, business owners must prepare documents such as the application form, personal identification, business location permit, and other supporting files.
Applications can be submitted directly to the district office, typically free of charge. Once verified, the office will issue the IUMK, serving as your official proof of business legality.
2. Applying via the OSS Website
To apply online through the Online Single Submission (OSS) portal, visit oss.go.id and follow these steps:
- Create an account, similar to the process for creating an online NIB on OSS.
- Complete the online application form and upload the required documents, such as your business location permit and personal ID.
- Submit the form electronically through the OSS platform.
- Once verified, your IUMK will be issued and made available for download through the OSS portal as proof of your business legality.
3. Applying for a Micro and Small Business License via Jakevo
Alternatively, you can also use the Jakevo platform to register your IUMK. Here’s how:
- Log in to the Jakevo platform using your registered account, or create a new one if you don’t have it yet.
- Select “UMKM License Application” and complete the provided form with accurate business information and supporting documents.
- Ensure all data is correctly filled in before submitting.
- After submission, the verification team will review your application and update the license status directly on Jakevo.
By obtaining an IUMK, your business becomes legally recognized and gains access to numerous growth opportunities and government support programs. With the right legal foundation, you can maximize your business potential, contribute to economic development, and achieve sustainable success.
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