Indonesia Provides Mechanism for Companies to Operate During Pandemic

Legal Updates
Indonesia Provides Mechanism for Companies to Operate During Pandemic
14 April 2020

By Dewi Savitri Reni and Syarifah Reihana Fakhry

The Indonesian government has enacted several policies to check the spread of COVID-19. One of these policies is a restriction on large-scale social interactions to limit the activities and mobility of people.

Since April 10, 2020, residents of Jakarta and surrounding cities have been instructed to remain at home, while transportation and activities at offices, schools and public facilities have been limited. This has disrupted the operations of businesses in different sectors around the country. In the industrial sector, Indonesian manufacturing output has significantly decreased and the situation could worsen if stricter measures are put in place.

In an attempt to ensure that industrial companies remain productive and are able to provide essential goods to the public during the pandemic, the Indonesian Ministry of Industry recently announced that industrial companies and/or companies located in industrial parks will be allowed to operate their factories and offices, and maintain the movement of their workers, materials and finished products, as long as they have the necessary operational license, known in Indonesian as an Izin Operasional dan Mobilitas Kegiatan Industri.

This is pursuant to Ministry of Industry Circular Letter No. 7 Year 2020 regarding Guidelines for Industrial Companies to Apply for Continued Operations During the COVID-19 Health Emergency.

How to Apply

Companies can apply for the abovementioned license electronically through the National Industry Information System (Sistem Informasi Industri Nasional or \"SIINas”), using the following steps:

  1. Log in to the company\'s SIINas account and proceed to the e-services page.
  2. Choose the option, \"Apply for Izin Operasional dan Mobilitas.”
  3. Complete the required information on the page, (e.g., address, license, number of workers, contact person, production details and capacity).
  4. Submit the application.
  5. The Ministry of Industry will then evaluate and validate the application.
  6. If the application is approved the company will receive the license in the form of a statement letter (Surat Keterangan) issued electronically by the system.

Statement Letter

The issued statement letter permits the company to continue operating and maintain the movement of its workers, materials and products during the pandemic. It will remain valid throughout the COVID-19 health emergency period. Therefore, regardless of the social restrictions put in place during the pandemic, a company can continue to operate if it holds a valid statement letter.

The authenticity of the letter is shown by the QR Code on the bottom of the page. The QR Code can be scanned by the relevant authorities and it will direct them to the Ministry of Industry website page detailing the company\'s data and the data of its supplier/distributor.

Industrial companies intending to continue operating during the pandemic should consider applying for the abovementioned license and obtain a valid statement letter to avoid any restrictions in the future. We are aware that several companies have already applied for the license and successfully obtained the statement letter. If you experience any technical difficulties during the application process, you can contact the SIINas helpdesk through the SIINas website.

For more information, you can contact Dewi Savitri Reni ( or Syarifah Reihana Fakhry (

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

For More Information, Please Contact
Back to Indonesia Law Blog
Related Articles