KBLI Indonesia: How Business Classification Works for Foreign Investors

KBLI Indonesia is the national system for classifying economic activities. Foreign investors use the relevant KBLI codes when defining their company’s business scope, checking foreign ownership eligibility and applying for business licenses through Indonesia’s Online Single Submission (OSS) system.

The code you choose can affect your company’s investment plan, licensing requirements and ability to conduct specific activities. Two businesses operating in the same industry may need different classifications because they perform different commercial functions.

Indonesia has also introduced KBLI 2025, replacing the previous classification standard while providing a transition mechanism for existing businesses.

If you are establishing a PT PMA or expanding an Indonesian subsidiary, the practical starting point is to identify what your company intends to do and then check how Indonesia classifies those activities.

How Indonesia’s KBLI Classification System Works

Statistics Indonesia, known locally as Badan Pusat Statistik (BPS), maintains KBLI as the country’s standardized classification of economic activities.

Government institutions use KBLI to identify business activities, compile economic statistics and organize regulatory information. Indonesia also uses the classification within its business registration and licensing systems.

The KBLI structure begins with broad economic sectors and narrows down to five-digit activity groups.

These five levels use the Indonesian terms kategori, golongan pokok, golongan, subgolongan and kelompok. The five-digit kelompok is the most detailed level in the official classification.

Consider a foreign investor planning to sell imported industrial equipment in Indonesia.

Wholesale and retail activities fall within the broader trade sector, but the correct classification depends on how the Indonesian company conducts the business.

The investor should examine who owns the goods, whether the company acts as an intermediary and whether it sells directly to consumers. Product-specific descriptions and exclusions may also affect the classification.

For example, the OSS description of KBLI 46100 covers certain wholesale activities conducted on a fee or contract basis without taking ownership of the goods.

That commercial distinction can matter when deciding how to register a trading business.

Why KBLI Matters for Foreign-Owned Companies

A foreign-owned company must match its planned business activities with Indonesia’s investment and licensing requirements.

The process involves several separate checks. A code may accurately describe your business while the corresponding activity remains subject to foreign ownership conditions or specialized permits.

Foreign Ownership Eligibility

Presidential Regulation No. 10 of 2021, as amended by Presidential Regulation No. 49 of 2021, provides Indonesia’s framework for business sectors open to investment and those subject to specific restrictions or conditions.

In English-language investment guidance, this framework is commonly called Indonesia’s Positive Investment List. Its legal title concerns business sectors for investment.

Foreign investors must assess the relevant business activity against the investment regulations and any applicable sector-specific provisions.

Depending on the activity, the rules may impose foreign equity limits, business scale restrictions, partnership requirements or other conditions.

Some activities are reserved for Indonesian cooperatives and micro, small and medium enterprises under the applicable investment framework.

A valid KBLI description establishes how Indonesia classifies an activity. Investors must assess the proposed foreign shareholding separately.

For founders still evaluating their corporate structure, our guide to PT PMA companies in Indonesia explains how foreign investment differs from domestic company ownership.

OSS Risk Classification and Business Licensing

Indonesia applies risk-based licensing to business activities through the OSS system.

Government Regulation No. 28 of 2025 governs this licensing framework and revoked Government Regulation No. 5 of 2021.

OSS uses the selected business activity and its applicable scope when determining the relevant licensing pathway.

The general framework distinguishes four risk levels.

This table summarizes the general licensing instruments. It cannot establish whether a particular company has obtained every approval needed to operate.

Depending on the activity and premises, businesses must also address applicable spatial planning, environmental and building requirements, along with sector-specific obligations.

Additional licenses may fall under Perizinan Berusaha Untuk Menunjang Kegiatan Usaha, or PB-UMKU.

For medium-high-risk activities, the Standard Certificate’s verification status matters when determining when the relevant commercial operations may begin.

A food manufacturer, for example, should examine its industrial KBLI and business license before assessing additional requirements for its products, packaging, distribution or facilities.

The exact obligations depend on the product and applicable regulations. Registering a manufacturing activity does not replace product-specific compliance.

Business Location and Sector Requirements

The proposed business location must also satisfy applicable regulatory requirements.

An industrial company may need suitable manufacturing premises, while a consultancy has a different operating model. Investors should examine the relevant spatial planning and licensing provisions before signing a lease.

Regional implementation issues can require a separate review.

For a Bali-specific illustration, see our discussion of regional PT PMA registration developments and KBLI restrictions.

The article addresses developments affecting Bali. Investors should assess other Indonesian locations against the rules and administrative requirements applicable to those locations.

Minimum Investment and Capital Requirements for PT PMA Activities

Foreign investors should calculate their investment requirements after identifying the proposed business activities and project locations.

Minister of Investment and Downstreaming/Head of BKPM Regulation No. 5 of 2025 sets out the relevant minimum investment and capital provisions for foreign investment.

Article 26 distinguishes two figures that founders sometimes combine in their initial budget.

These figures serve different purposes. The investment value concerns the company’s investment commitment, while issued and paid-up capital concerns its share capital.

The general investment threshold is more than IDR 10 billion. An investment value of exactly IDR 10 billion does not satisfy that wording.

Foreign founders should also avoid multiplying the general threshold by every registered KBLI without checking the calculation provisions.

Different Industries Have Different Investment Calculation Rules

Article 26 provides special calculation arrangements for several business sectors.

For wholesale trade, the regulation groups the investment calculation by the first four digits of the relevant KBLI.

Food and beverage services use a grouping based on the first two KBLI digits and the applicable location provisions. Construction services have their own four-digit grouping.

The regulation also addresses industrial activities producing different products within one production line.

Certain sectors and locations receive additional treatment. For specified activities, including some property, accommodation and agricultural businesses, the regulation allows land and buildings to count toward the investment value.

The appropriate calculation therefore depends on the business activity, project structure and location.

A founder establishing a trading company with several product categories should have the relevant KBLI groupings reviewed before finalizing the investment plan.

Our guide to PT PMA minimum capital requirements explains the distinction between authorized capital, paid-up capital and investment value.

Main and Supporting Business Activities Under OSS

Indonesia distinguishes main business activities from supporting business activities when companies register their operations through OSS.

Articles 210 to 213 of Government Regulation No. 28 of 2025 address main and supporting business activities. Ministerial Regulation No. 5 of 2025 provides further provisions for recording them in OSS.

Article 35 of the ministerial regulation identifies two classifications for business activity data:

• Main business activity (kegiatan usaha utama): An activity that generates revenue or profit for the business and forms part of its principal business operations.
• Supporting business activity (kegiatan usaha pendukung): An activity that supports the main business and may also generate revenue or profit.

A supporting activity can generate revenue. Its supporting role does not remove the need to assess the applicable corporate and licensing requirements.

Revenue-Generating Supporting Activities

Article 35(7) of Ministerial Regulation No. 5 of 2025 establishes specific requirements when a supporting business activity generates income or profit.

The company must include the relevant supporting KBLI in its deed and obtain the required corporate approval. It must also satisfy the applicable minimum investment and capital provisions.

This means a company should examine the relationship between its main and supporting activities rather than classify every activity according to whether it generates an invoice.

Article 35 also provides different treatment for supporting activities that do not generate revenue or profit, subject to the conditions in the regulation.

Supporting Activities and PB-UMKU Are Different Concepts

A supporting business activity and a supporting business license serve different purposes in Indonesia’s regulatory framework.

Main and supporting activities describe the role of an activity in the company’s operations.

PB-UMKU refers to additional licensing required to support business activities under the applicable regulations.

A company should assess its registered business activities and its additional licensing obligations as separate parts of the compliance review.

How to Choose the Right KBLI Code for Your Business

Foreign investors should begin with a description of their planned operations and compare each activity with the official KBLI classification.

The company’s name or industry category can help narrow the search. The final selection should reflect the activities the Indonesian entity intends to conduct.

1. Describe the business model. Identify the products and services the Indonesian company will provide, its customers and the commercial functions it intends to perform.
2. Distinguish main and supporting activities. Examine how each activity relates to the principal business, whether it generates revenue and how OSS requires the company to record it.
3. Search the official KBLI database. Read the complete five-digit activity description, including the activities included and excluded from its scope.
4. Check foreign investment eligibility. Review the applicable investment regulations and sector-specific provisions for the proposed foreign shareholding.
5. Review the OSS licensing pathway. Identify the risk classification, basic requirements, technical standards and any additional approvals.
6. Calculate investment requirements. Apply the relevant provisions to the activity, sector and project location.
7. Prepare consistent corporate documents. Coordinate the final business scope with the notary and check that the relevant deed, AHU and OSS records describe the intended activities.

The official KBLI database is available through BPS and OSS. Foreign investors converting an existing company’s codes can use the government’s KBLI 2020 to KBLI 2025 conversion facility.

The conversion tool provides a starting point. Investors must still review the resulting activity description and scope before using it in a registration or amendment.

Can a PT PMA Register Multiple KBLI Codes?

A PT PMA may register multiple relevant business activities when it satisfies the applicable investment and licensing requirements.

Consider a foreign-owned industrial equipment company that plans to import machinery, distribute it to Indonesian manufacturers and provide installation services.

The company’s activities may fall under different classifications. The final selection depends on the commercial arrangements and the official descriptions.

The founders should determine which activities belong within the main business, which qualify as supporting activities and which require their own licensing review.

Registering several codes also requires the company to assess the applicable investment calculation for its business model.

Adding codes for potential future activities without assessing these obligations may lead to an investment plan that no longer matches the proposed project.

Practical Example: A Foreign Technology Company Entering Indonesia

Consider a hypothetical Singapore-based technology company planning to establish an Indonesian subsidiary.

The company develops industrial monitoring software. It also intends to supply imported sensors and provide installation and technical support to local manufacturers.

Its founders describe the business as a technology company. That description is reasonable for marketing, but the Indonesian registration requires a more detailed examination of its activities.

The founders should review the company’s contracts and proposed operating procedures before finalizing the classification.

Customer contracts and invoices provide useful evidence of what the Indonesian entity does. They cannot determine the appropriate KBLI codes on their own.

The founders must compare each activity with the official inclusions and exclusions, the rules governing main and supporting activities, foreign investment eligibility and the applicable OSS licensing requirements.

A supporting activity may generate income while remaining connected to the company’s main business. The relevant corporate registration and investment provisions still need to be assessed.

The company should also identify which entity imports the sensors, which entity owns them and which entity supplies or installs the equipment.

These details help determine the appropriate classification and the additional requirements associated with the proposed operations.

Illustrative example only: This scenario does not establish the final classification or licensing requirements for a particular company. The correct codes depend on the contracts, products, operating roles, project locations and official KBLI descriptions.

After settling the proposed business activities, founders can use our PT PMA registration guide to understand the subsequent incorporation process.

KBLI 2025: What Changed From KBLI 2020?

Statistics Indonesia updated the national classification through BPS Regulation No. 7 of 2025.

The government issued the regulation on 17 December 2025 and promulgated it on 18 December 2025. BPS publicly launched KBLI 2025 on 19 December 2025.

According to the BPS release, the revision draws on the International Standard Industrial Classification of All Economic Activities, Revision 5.

The updated classification reflects economic activities associated with digital transformation, emerging business models and climate-related developments.

BPS identifies activities such as digital platform intermediation, digital content production and carbon-related services among the areas addressed by the revised classification.

KBLI 2025 updates the national standard previously provided by KBLI 2020. The government introduced a transition mechanism to preserve the validity of previously issued business licenses.

How the Official KBLI Conversion System Works

The OSS portal provides a conversion facility for checking the relationship between KBLI 2020 and KBLI 2025.

Its official guidance identifies five conversion types.

A code that retains the same five digits may still have a revised activity description or coverage.

The official OSS conversion tool provides a useful example. KBLI 71102 under KBLI 2020 was divided between KBLI 71102 and KBLI 71109 under KBLI 2025.

The previous classification covered engineering and related technical consultancy activities. The revised codes distinguish more specific activities.

A company that previously used KBLI 71102 should review its actual services against the revised descriptions before deciding which classification fits its operations.

OSS also states that conversion information is a reference tool rather than a legal determination of whether a particular code fits a business.

Do Existing Companies Need New Business Licenses?

The introduction of KBLI 2025 does not require companies to obtain new licenses solely because their classification codes have changed.

In its announcement on 27 April 2026, BPS reported that the government had issued a joint circular concerning the implementation of KBLI 2025 in risk-based business licensing.

The announcement confirmed that licenses issued before KBLI 2025 implementation remain valid.

Where the change involves only a code conversion without changing the substance of the business, the AHU and OSS systems handle the adjustment automatically.

The company does not need to amend its articles of association solely because of that code conversion.

A different procedure applies when the company changes its business objectives or scope in substance.

In that situation, the company must assess the necessary corporate and OSS amendments against the applicable provisions.

BPS announced in April 2026 that the AHU and OSS adjustments were scheduled for completion no later than 18 June 2026.

That deadline describes the government’s announced implementation schedule. It does not establish that every individual company’s record converted without an error.

Existing PT PMA companies should therefore inspect the codes and activity descriptions displayed in their AHU and OSS records.

Common KBLI Selection Mistakes Foreign Investors Should Avoid

Several classification problems arise when investors select a code before examining how the Indonesian company will operate.

The following situations deserve attention during incorporation and when an existing business expands.

Choosing a Code Based on the Company Name

A company may describe itself as a trading business while providing technical services or installation work.

The registered activity should reflect its actual commercial functions. A broad company name cannot establish whether every planned service falls within the selected KBLI.

Confusing KBLI With NIB

KBLI identifies the economic activity. NIB, or Nomor Induk Berusaha, is the Business Identification Number issued through OSS.

The selected business activities form part of the company’s registration and licensing information.

Receiving an NIB does not remove additional licensing or sector-specific obligations that apply to the company’s activities.

Assuming a Valid KBLI Allows Foreign Ownership

The official database identifies how Indonesia classifies an economic activity.

Foreign ownership eligibility requires a separate review of the investment framework and relevant sector regulations.

Investors should check the proposed shareholding against the specific activity and business model before preparing incorporation documents.

Registering Future Activities Without Reviewing Investment Requirements

Founders may want to register several activities to accommodate future expansion.

Each proposed activity needs an assessment of its role, licensing requirements and applicable investment calculation.

Including a new activity may change the investment plan or introduce additional regulatory obligations.

Using Old KBLI Descriptions After Conversion

A familiar five-digit code may appear in both KBLI 2020 and KBLI 2025.

Companies should examine the current description and scope. An unchanged number cannot establish that the activity coverage has remained identical.

Preparing Your KBLI Classification Before Company Registration

Foreign investors can prepare a more accurate registration scope by documenting their proposed activities before submitting incorporation information.

A practical activity mapping document should contain the following information.

This mapping gives founders, notaries and licensing consultants a clearer basis for deciding how to describe the company’s operations.

It also helps established companies compare their registered business scope with new products, services or project locations.

If you are preparing incorporation documents or reviewing the licensing scope of an existing PT PMA, our Indonesia business licensing services</a can help with OSS registration, NIB applications and sector-specific licensing requirements.

InvestinAsia is the market entry arm of vOffice Group. In Indonesia, our licensing, corporate legal and workspace services are supported by vOffice and IZIN.co.id.

Regulatory sources checked: 22 September 2026. Check the official OSS entry and applicable sector regulations for your specific business activity before submitting an application.