Usaha Mikro
Micro business · 64,991 companies in our corpus
The smallest class in the Indonesian MSME criteria: business capital up to Rp1 billion, or annual sales up to Rp2 billion.
At a glance
- Business capital
- Up to Rp1 billion, excluding the land and buildings of the premises
- Annual sales
- Up to Rp2 billion a year
- Which criterion applies
- Capital is used at establishment or registration; annual sales are used for a business already running
- Available forms
- Usually a sole proprietorship; a PT Perorangan is available to this class
The scale shown on a company profile is what its registrar published, not a measurement of ours.
What it means
- Business capital is counted without the land and buildings of the premises, so a house used for trading does not push the business up a class.
- This class opens the most doors: the lightest risk-based licensing, the share of government procurement reserved for micro and small business, and programme credit such as KUR.
- A PT Perorangan may only be used by a business inside the micro or small criteria — so this class also decides which legal forms are available.
- Most micro businesses in Indonesia are sole proprietorships and never take any entity form at all.
How to set one up
- The class is not registered on its own: it attaches to the business registration.
- When the NIB is obtained in OSS, the business capital declared there is what sets the class at the start.
- For a low-risk activity the NIB is itself the business licence — there is no separate permit to chase.
- Certifications that are normally expensive have a dedicated route for this class, including self-declared halal status for certain products.
What it obliges you to do
- Once the business has been running for more than a year, its class is measured on annual sales rather than on capital.
- Moving up a class means losing the facilities reserved for micro and small business, which is something to plan for rather than discover.
- Sales records are the only evidence of class: without figures, a claim to be a micro business cannot be defended under inspection.
- For an individual, the first Rp500 million of turnover in a year is untaxed, and above that a final 0.5% rate applies while turnover stays under Rp4.8 billion.
When to choose it
This is not a choice but the result of a measurement — and it governs other choices. While a business stays in this class, the lightest form that still separates assets is a PT Perorangan.
Need help with the bookkeeping?
Bookkeeping and tax filing are obligations that run every year, not a task you finish when the business is registered.
Bookkeepers, accountants and tax consultants across Indonesia
The rules this summarises
- Law 20/2008 on Micro, Small and Medium Enterprises
- Government Regulation 7/2021 article 35 on the capital and annual-sales criteria
A summary of the rules in force, not legal advice. Rules and thresholds change — check with the relevant authority before you register.
Other size classes
PT, CV, cooperative, foundation and the rest: how they differ and what it means for the owner.