{"id":478,"date":"2026-09-22T08:20:24","date_gmt":"2026-09-22T01:20:24","guid":{"rendered":"https:\/\/investinasia.com\/blog?p=478"},"modified":"2026-09-22T10:05:24","modified_gmt":"2026-09-22T03:05:24","slug":"kbli-indonesia-guide","status":"publish","type":"post","link":"https:\/\/investinasia.com\/blog\/kbli-indonesia-guide\/","title":{"rendered":"KBLI Indonesia: How Business Classification Works for Foreign Investors"},"content":{"rendered":"<p><strong>KBLI Indonesia<\/strong> is the national system for classifying economic activities. Foreign investors use the relevant KBLI codes when defining their company&#8217;s business scope, checking foreign ownership eligibility and applying for business licenses through Indonesia&#8217;s Online Single Submission (OSS) system.<\/p>\n<p>The code you choose can affect your company&#8217;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.<\/p>\n<p>Indonesia has also introduced KBLI 2025, replacing the previous classification standard while providing a transition mechanism for existing businesses.<\/p>\n<p>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.<\/p>\n<div style=\"background: #f8f9fa; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 10px 0; color: #223666;\">Key Takeaways<\/p>\n<ul style=\"margin: 0; padding-left: 20px; line-height: 1.8;\">\n<li>KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, the national classification system maintained by Statistics Indonesia (BPS).<\/li>\n<li>KBLI 2025 was established under BPS Regulation No. 7 of 2025. Its introduction does not invalidate business licenses issued under earlier KBLI codes.<\/li>\n<li>A valid KBLI classification does not establish foreign ownership eligibility or replace the licenses required for that activity.<\/li>\n<li>Under Ministerial Regulation No. 5 of 2025, the general minimum foreign investment value exceeds IDR 10 billion per five-digit KBLI per project location, subject to sector-specific calculation rules and exceptions.<\/li>\n<li>The minimum issued and paid-up capital for a PT PMA is separately set at IDR 2.5 billion per company, unless another applicable regulation provides otherwise.<\/li>\n<li>Supporting business activities may generate revenue. Revenue-generating supporting activities are subject to specific corporate registration and investment requirements.<\/li>\n<li>The government has confirmed that code-only conversion to KBLI 2025 does not require a new business license or an amendment to the articles of association solely for that conversion.<\/li>\n<\/ul>\n<\/div>\n<h2>How Indonesia&#8217;s KBLI Classification System Works<\/h2>\n<figure id=\"attachment_481\" aria-describedby=\"caption-attachment-481\" style=\"width: 735px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-large wp-image-481\" src=\"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia-1024x680.jpg\" alt=\"What is KBLI in Indonesia (source: Pexels)\" width=\"735\" height=\"488\" srcset=\"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia-1024x680.jpg 1024w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia-300x199.jpg 300w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia-768x510.jpg 768w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia-1536x1020.jpg 1536w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-code-indonesia.jpg 1920w\" sizes=\"(max-width: 735px) 100vw, 735px\" \/><figcaption id=\"caption-attachment-481\" class=\"wp-caption-text\">What is KBLI in Indonesia: Indonesian standard industrial classification (source: Pexels)<\/figcaption><\/figure>\n<p>Statistics Indonesia, known locally as Badan Pusat Statistik (BPS), maintains KBLI as the country&#8217;s standardized classification of economic activities.<\/p>\n<p>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.<\/p>\n<p>The KBLI structure begins with broad economic sectors and narrows down to five-digit activity groups.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Classification Level<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Code Structure<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Purpose<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Category (Kategori)<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Letter<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Broad economic sector<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Division (Golongan Pokok)<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Two digits<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Main industry grouping<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Group (Golongan)<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Three digits<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">More specific economic activity<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Class (Subgolongan)<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Four digits<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Narrower activity classification<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Five-Digit Group (Kelompok)<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Five digits<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Detailed economic activity classification<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>These five levels use the Indonesian terms <em>kategori<\/em>, <em>golongan pokok<\/em>, <em>golongan<\/em>, <em>subgolongan<\/em> and <em>kelompok<\/em>. The five-digit kelompok is the most detailed level in the official classification.<\/p>\n<p>Consider a foreign investor planning to sell imported industrial equipment in Indonesia.<\/p>\n<p>Wholesale and retail activities fall within the broader trade sector, but the correct classification depends on how the Indonesian company conducts the business.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>That commercial distinction can matter when deciding how to register a trading business.<\/p>\n<h2>Why KBLI Matters for Foreign-Owned Companies<\/h2>\n<p>A foreign-owned company must match its planned business activities with Indonesia&#8217;s investment and licensing requirements.<\/p>\n<p>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.<\/p>\n<h3>Foreign Ownership Eligibility<\/h3>\n<p>Presidential Regulation No. 10 of 2021, as amended by Presidential Regulation No. 49 of 2021, provides Indonesia&#8217;s framework for business sectors open to investment and those subject to specific restrictions or conditions.<\/p>\n<p>In English-language investment guidance, this framework is commonly called Indonesia&#8217;s Positive Investment List. Its legal title concerns business sectors for investment.<\/p>\n<p>Foreign investors must assess the relevant business activity against the investment regulations and any applicable sector-specific provisions.<\/p>\n<p>Depending on the activity, the rules may impose foreign equity limits, business scale restrictions, partnership requirements or other conditions.<\/p>\n<p>Some activities are reserved for Indonesian cooperatives and micro, small and medium enterprises under the applicable investment framework.<\/p>\n<p>A valid KBLI description establishes how Indonesia classifies an activity. Investors must assess the proposed foreign shareholding separately.<\/p>\n<p>For founders still evaluating their corporate structure, our guide to <a href=\"https:\/\/investinasia.com\/blog\/what-is-a-pt-pma-company-in-indonesia\/\">PT PMA companies in Indonesia<\/a> explains how foreign investment differs from domestic company ownership.<\/p>\n<h3>OSS Risk Classification and Business Licensing<\/h3>\n<p>Indonesia applies risk-based licensing to business activities through the OSS system.<\/p>\n<p>Government Regulation No. 28 of 2025 governs this licensing framework and revoked Government Regulation No. 5 of 2021.<\/p>\n<p>OSS uses the selected business activity and its applicable scope when determining the relevant licensing pathway.<\/p>\n<p>The general framework distinguishes four risk levels.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Risk Level<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">General Licensing Instrument<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">What Investors Should Check<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Low<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">NIB<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Applicable basic requirements and sector obligations<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Medium-Low<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">NIB and self-declared Standard Certificate<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Compliance with the declared business standards<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Medium-High<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">NIB and Standard Certificate subject to verification<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Verification status and conditions for commercial operations<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">High<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">NIB and required business license<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Applicable approval before conducting activities that require it<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>This table summarizes the general licensing instruments. It cannot establish whether a particular company has obtained every approval needed to operate.<\/p>\n<p>Depending on the activity and premises, businesses must also address applicable spatial planning, environmental and building requirements, along with sector-specific obligations.<\/p>\n<p>Additional licenses may fall under Perizinan Berusaha Untuk Menunjang Kegiatan Usaha, or PB-UMKU.<\/p>\n<p>For medium-high-risk activities, the Standard Certificate&#8217;s verification status matters when determining when the relevant commercial operations may begin.<\/p>\n<p>A food manufacturer, for example, should examine its industrial KBLI and business license before assessing additional requirements for its products, packaging, distribution or facilities.<\/p>\n<p>The exact obligations depend on the product and applicable regulations. Registering a manufacturing activity does not replace product-specific compliance.<\/p>\n<h3>Business Location and Sector Requirements<\/h3>\n<p>The proposed business location must also satisfy applicable regulatory requirements.<\/p>\n<p>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.<\/p>\n<p>Regional implementation issues can require a separate review.<\/p>\n<p>For a Bali-specific illustration, see our discussion of <a href=\"https:\/\/investinasia.com\/blog\/bali-kbli-update-closes-pt-pma-low-risk-and-virtual-offices\/\">regional PT PMA registration developments and KBLI restrictions<\/a>.<\/p>\n<p>The article addresses developments affecting Bali. Investors should assess other Indonesian locations against the rules and administrative requirements applicable to those locations.<\/p>\n<h2>Minimum Investment and Capital Requirements for PT PMA Activities<\/h2>\n<p>Foreign investors should calculate their investment requirements after identifying the proposed business activities and project locations.<\/p>\n<p>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.<\/p>\n<p>Article 26 distinguishes two figures that founders sometimes combine in their initial budget.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Requirement<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">General Threshold<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">How It Applies<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Minimum Investment Value<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">More than IDR 10 billion<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Per five-digit KBLI business activity per project location, excluding land and buildings under the general rule<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Minimum Issued and Paid-Up Capital<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">At least IDR 2.5 billion<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Per PT PMA company, unless another applicable rule provides otherwise<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>These figures serve different purposes. The investment value concerns the company&#8217;s investment commitment, while issued and paid-up capital concerns its share capital.<\/p>\n<p>The general investment threshold is more than IDR 10 billion. An investment value of exactly IDR 10 billion does not satisfy that wording.<\/p>\n<p>Foreign founders should also avoid multiplying the general threshold by every registered KBLI without checking the calculation provisions.<\/p>\n<h3>Different Industries Have Different Investment Calculation Rules<\/h3>\n<p>Article 26 provides special calculation arrangements for several business sectors.<\/p>\n<p>For wholesale trade, the regulation groups the investment calculation by the first four digits of the relevant KBLI.<\/p>\n<p>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.<\/p>\n<p>The regulation also addresses industrial activities producing different products within one production line.<\/p>\n<p>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.<\/p>\n<p>The appropriate calculation therefore depends on the business activity, project structure and location.<\/p>\n<p>A founder establishing a trading company with several product categories should have the relevant KBLI groupings reviewed before finalizing the investment plan.<\/p>\n<p>Our guide to <a href=\"https:\/\/investinasia.com\/blog\/pt-pma-minimum-capital-requirements\/\">PT PMA minimum capital requirements<\/a> explains the distinction between authorized capital, paid-up capital and investment value.<\/p>\n<div style=\"background: #d5e6e5; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 8px 0; color: #223666;\">Notes from InvestinAsia Consultants<\/p>\n<p style=\"margin: 0; color: #333;\">When reviewing a proposed PT PMA structure, we recommend mapping business activities and project locations before preparing the investment figures. A trading company with several product categories may fall under a different calculation arrangement from a company operating unrelated activities across several locations. Check the applicable Article 26 provisions before using a general investment threshold to prepare the budget.<\/p>\n<\/div>\n<div style=\"background: #d5e6e5; border: 2px solid #223666; border-radius: 8px; padding: 20px 24px; margin: 32px 0; text-align: center;\">\n<p style=\"margin: 0 0 8px 0; font-size: 16px; font-weight: bold; color: #223666; text-align: center;\">Planning a PT PMA With Several Business Activities?<\/p>\n<p style=\"margin: 0 0 16px 0; color: #333; text-align: center;\">Review your proposed incorporation scope with InvestinAsia, backed by vOffice Group, operating since 2003.<\/p>\n<div style=\"text-align: center;\"><a style=\"background: #223666; color: #ffffff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/investinasia.com\/id\/pt-pma-registration\">View PT PMA Registration<\/a><\/div>\n<div style=\"height: 15px;\"><\/div>\n<div style=\"text-align: center;\"><a style=\"background: #25D366; color: #ffffff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/wa.me\/6281295665565?text=Hello%2C%20I%20would%20like%20help%20reviewing%20KBLI%20codes%20and%20my%20PT%20PMA%20investment%20plan.%0A%0ASource%3A%20article%20%22KBLI%20Indonesia%3A%20How%20Business%20Classification%20Works%20for%20Foreign%20Investors%22%20(SEO)\" target=\"_blank\" rel=\"noopener nofollow\">Discuss Your PT PMA on WhatsApp<\/a><\/div>\n<\/div>\n<h2>Main and Supporting Business Activities Under OSS<\/h2>\n<figure id=\"attachment_484\" aria-describedby=\"caption-attachment-484\" style=\"width: 735px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-large wp-image-484\" src=\"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia-1024x768.jpg\" alt=\"What is KBLI in Indonesia (source: Pexels)\" width=\"735\" height=\"551\" srcset=\"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia-1024x768.jpg 1024w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia-300x225.jpg 300w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia-768x576.jpg 768w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia-1536x1152.jpg 1536w, https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/05\/kbli-in-indonesia.jpg 1705w\" sizes=\"(max-width: 735px) 100vw, 735px\" \/><figcaption id=\"caption-attachment-484\" class=\"wp-caption-text\">What is KBLI in Indonesia: Indonesian standard industrial classification (source: Pexels)<\/figcaption><\/figure>\n<p>Indonesia distinguishes main business activities from supporting business activities when companies register their operations through OSS.<\/p>\n<p>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.<\/p>\n<p>Article 35 of the ministerial regulation identifies two classifications for business activity data:<\/p>\n<ul>\n<li><strong>Main business activity (kegiatan usaha utama):<\/strong> An activity that generates revenue or profit for the business and forms part of its principal business operations.<\/li>\n<li><strong>Supporting business activity (kegiatan usaha pendukung):<\/strong> An activity that supports the main business and may also generate revenue or profit.<\/li>\n<\/ul>\n<p>A supporting activity can generate revenue. Its supporting role does not remove the need to assess the applicable corporate and licensing requirements.<\/p>\n<h3>Revenue-Generating Supporting Activities<\/h3>\n<p>Article 35(7) of Ministerial Regulation No. 5 of 2025 establishes specific requirements when a supporting business activity generates income or profit.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>Article 35 also provides different treatment for supporting activities that do not generate revenue or profit, subject to the conditions in the regulation.<\/p>\n<h3>Supporting Activities and PB-UMKU Are Different Concepts<\/h3>\n<p>A supporting business activity and a supporting business license serve different purposes in Indonesia&#8217;s regulatory framework.<\/p>\n<p>Main and supporting activities describe the role of an activity in the company&#8217;s operations.<\/p>\n<p>PB-UMKU refers to additional licensing required to support business activities under the applicable regulations.<\/p>\n<p>A company should assess its registered business activities and its additional licensing obligations as separate parts of the compliance review.<\/p>\n<h2>How to Choose the Right KBLI Code for Your Business<\/h2>\n<p>Foreign investors should begin with a description of their planned operations and compare each activity with the official KBLI classification.<\/p>\n<p>The company&#8217;s name or industry category can help narrow the search. The final selection should reflect the activities the Indonesian entity intends to conduct.<\/p>\n<ol>\n<li><strong>Describe the business model.<\/strong> Identify the products and services the Indonesian company will provide, its customers and the commercial functions it intends to perform.<\/li>\n<li><strong>Distinguish main and supporting activities.<\/strong> Examine how each activity relates to the principal business, whether it generates revenue and how OSS requires the company to record it.<\/li>\n<li><strong>Search the official KBLI database.<\/strong> Read the complete five-digit activity description, including the activities included and excluded from its scope.<\/li>\n<li><strong>Check foreign investment eligibility.<\/strong> Review the applicable investment regulations and sector-specific provisions for the proposed foreign shareholding.<\/li>\n<li><strong>Review the OSS licensing pathway.<\/strong> Identify the risk classification, basic requirements, technical standards and any additional approvals.<\/li>\n<li><strong>Calculate investment requirements.<\/strong> Apply the relevant provisions to the activity, sector and project location.<\/li>\n<li><strong>Prepare consistent corporate documents.<\/strong> Coordinate the final business scope with the notary and check that the relevant deed, AHU and OSS records describe the intended activities.<\/li>\n<\/ol>\n<p>The official KBLI database is available through BPS and OSS. Foreign investors converting an existing company&#8217;s codes can use the government&#8217;s KBLI 2020 to KBLI 2025 conversion facility.<\/p>\n<p>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.<\/p>\n<h3>Can a PT PMA Register Multiple KBLI Codes?<\/h3>\n<p>A PT PMA may register multiple relevant business activities when it satisfies the applicable investment and licensing requirements.<\/p>\n<p>Consider a foreign-owned industrial equipment company that plans to import machinery, distribute it to Indonesian manufacturers and provide installation services.<\/p>\n<p>The company&#8217;s activities may fall under different classifications. The final selection depends on the commercial arrangements and the official descriptions.<\/p>\n<p>The founders should determine which activities belong within the main business, which qualify as supporting activities and which require their own licensing review.<\/p>\n<p>Registering several codes also requires the company to assess the applicable investment calculation for its business model.<\/p>\n<p>Adding codes for potential future activities without assessing these obligations may lead to an investment plan that no longer matches the proposed project.<\/p>\n<h2>Practical Example: A Foreign Technology Company Entering Indonesia<\/h2>\n<p>Consider a hypothetical Singapore-based technology company planning to establish an Indonesian subsidiary.<\/p>\n<p>The company develops industrial monitoring software. It also intends to supply imported sensors and provide installation and technical support to local manufacturers.<\/p>\n<p>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.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Planned Activity<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Classification Question<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Required Review<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Software Development<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Which classification describes the company&#8217;s software development services?<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Activity description, foreign ownership eligibility and OSS licensing<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Equipment Distribution<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Will the Indonesian entity own the imported equipment or act as an intermediary?<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Trading classification, import requirements and product-specific rules<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Installation Services<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">What work will the company perform at the customer&#8217;s premises?<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Relevant technical activity, sector requirements and licensing scope<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Technical Support<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Is the support part of the registered service scope or a supporting business activity?<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Contractual obligations, official activity descriptions and OSS treatment<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>The founders should review the company&#8217;s contracts and proposed operating procedures before finalizing the classification.<\/p>\n<p>Customer contracts and invoices provide useful evidence of what the Indonesian entity does. They cannot determine the appropriate KBLI codes on their own.<\/p>\n<p>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.<\/p>\n<p>A supporting activity may generate income while remaining connected to the company&#8217;s main business. The relevant corporate registration and investment provisions still need to be assessed.<\/p>\n<p>The company should also identify which entity imports the sensors, which entity owns them and which entity supplies or installs the equipment.<\/p>\n<p>These details help determine the appropriate classification and the additional requirements associated with the proposed operations.<\/p>\n<p><strong>Illustrative example only:<\/strong> 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.<\/p>\n<p>After settling the proposed business activities, founders can use our <a href=\"https:\/\/investinasia.com\/blog\/how-to-set-up-pt-pma-company-indonesia\/\">PT PMA registration guide<\/a> to understand the subsequent incorporation process.<\/p>\n<h2>KBLI 2025: What Changed From KBLI 2020?<\/h2>\n<p>Statistics Indonesia updated the national classification through BPS Regulation No. 7 of 2025.<\/p>\n<p>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.<\/p>\n<p>According to the BPS release, the revision draws on the International Standard Industrial Classification of All Economic Activities, Revision 5.<\/p>\n<p>The updated classification reflects economic activities associated with digital transformation, emerging business models and climate-related developments.<\/p>\n<p>BPS identifies activities such as digital platform intermediation, digital content production and carbon-related services among the areas addressed by the revised classification.<\/p>\n<p>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.<\/p>\n<h3>How the Official KBLI Conversion System Works<\/h3>\n<p>The OSS portal provides a conversion facility for checking the relationship between KBLI 2020 and KBLI 2025.<\/p>\n<p>Its official guidance identifies five conversion types.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Conversion Type<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Meaning<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">What Companies Should Review<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Unchanged<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">The previous code remains in use.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Check the updated title and activity description.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Changed<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">One old code maps to one new code.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Review the new code and its scope.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Split<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">One old code maps to several new codes.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Identify the classification covering the company&#8217;s activities.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Merged<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Several old codes map to one new code.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Check the combined activity description.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Restructured<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Several previous codes are reorganized into several new codes.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Review the relevant activities against the revised classification.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>A code that retains the same five digits may still have a revised activity description or coverage.<\/p>\n<p>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.<\/p>\n<p>The previous classification covered engineering and related technical consultancy activities. The revised codes distinguish more specific activities.<\/p>\n<p>A company that previously used KBLI 71102 should review its actual services against the revised descriptions before deciding which classification fits its operations.<\/p>\n<p>OSS also states that conversion information is a reference tool rather than a legal determination of whether a particular code fits a business.<\/p>\n<h3>Do Existing Companies Need New Business Licenses?<\/h3>\n<p>The introduction of KBLI 2025 does not require companies to obtain new licenses solely because their classification codes have changed.<\/p>\n<p>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.<\/p>\n<p>The announcement confirmed that licenses issued before KBLI 2025 implementation remain valid.<\/p>\n<p>Where the change involves only a code conversion without changing the substance of the business, the AHU and OSS systems handle the adjustment automatically.<\/p>\n<p>The company does not need to amend its articles of association solely because of that code conversion.<\/p>\n<p>A different procedure applies when the company changes its business objectives or scope in substance.<\/p>\n<p>In that situation, the company must assess the necessary corporate and OSS amendments against the applicable provisions.<\/p>\n<p>BPS announced in April 2026 that the AHU and OSS adjustments were scheduled for completion no later than 18 June 2026.<\/p>\n<p>That deadline describes the government&#8217;s announced implementation schedule. It does not establish that every individual company&#8217;s record converted without an error.<\/p>\n<p>Existing PT PMA companies should therefore inspect the codes and activity descriptions displayed in their AHU and OSS records.<\/p>\n<div style=\"background: #d5e6e5; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 8px 0; color: #223666;\">Notes from InvestinAsia Consultants<\/p>\n<p style=\"margin: 0; color: #333;\">When reviewing an existing PT PMA, we recommend comparing its corporate records with the activities it conducts today. A company whose old KBLI has changed may only need to confirm that the conversion reflects its existing scope. A company that has started selling new products or providing additional services needs a separate review of its corporate documents and OSS registration.<\/p>\n<\/div>\n<h2>Common KBLI Selection Mistakes Foreign Investors Should Avoid<\/h2>\n<p>Several classification problems arise when investors select a code before examining how the Indonesian company will operate.<\/p>\n<p>The following situations deserve attention during incorporation and when an existing business expands.<\/p>\n<h3>Choosing a Code Based on the Company Name<\/h3>\n<p>A company may describe itself as a trading business while providing technical services or installation work.<\/p>\n<p>The registered activity should reflect its actual commercial functions. A broad company name cannot establish whether every planned service falls within the selected KBLI.<\/p>\n<h3>Confusing KBLI With NIB<\/h3>\n<p>KBLI identifies the economic activity. NIB, or Nomor Induk Berusaha, is the Business Identification Number issued through OSS.<\/p>\n<p>The selected business activities form part of the company&#8217;s registration and licensing information.<\/p>\n<p>Receiving an NIB does not remove additional licensing or sector-specific obligations that apply to the company&#8217;s activities.<\/p>\n<h3>Assuming a Valid KBLI Allows Foreign Ownership<\/h3>\n<p>The official database identifies how Indonesia classifies an economic activity.<\/p>\n<p>Foreign ownership eligibility requires a separate review of the investment framework and relevant sector regulations.<\/p>\n<p>Investors should check the proposed shareholding against the specific activity and business model before preparing incorporation documents.<\/p>\n<h3>Registering Future Activities Without Reviewing Investment Requirements<\/h3>\n<p>Founders may want to register several activities to accommodate future expansion.<\/p>\n<p>Each proposed activity needs an assessment of its role, licensing requirements and applicable investment calculation.<\/p>\n<p>Including a new activity may change the investment plan or introduce additional regulatory obligations.<\/p>\n<h3>Using Old KBLI Descriptions After Conversion<\/h3>\n<p>A familiar five-digit code may appear in both KBLI 2020 and KBLI 2025.<\/p>\n<p>Companies should examine the current description and scope. An unchanged number cannot establish that the activity coverage has remained identical.<\/p>\n<h2>Preparing Your KBLI Classification Before Company Registration<\/h2>\n<p>Foreign investors can prepare a more accurate registration scope by documenting their proposed activities before submitting incorporation information.<\/p>\n<p>A practical activity mapping document should contain the following information.<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 20px 0;\">\n<thead>\n<tr style=\"background: #223666;\">\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Information to Prepare<\/th>\n<th style=\"padding: 12px; border: 1px solid #dddddd; text-align: center;\">Purpose<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Products and Services<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Identify the activities the Indonesian entity intends to conduct.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Commercial Contracts<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Understand which entity supplies goods, performs services and accepts contractual obligations.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Goods Ownership and Importing Role<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Distinguish trading, distribution and intermediary arrangements.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Main and Supporting Activities<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Assess how each activity should be recorded under the applicable OSS provisions.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Project Locations<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Assess spatial requirements, location-specific conditions and investment calculations.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Candidate KBLI Codes<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Compare official activity descriptions and exclusions.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Foreign Ownership Structure<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Review eligibility under the investment framework.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">OSS Risk and Sector Permits<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Identify the relevant licensing pathway and additional approvals.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Investment Plan<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Apply the relevant capital and investment provisions to the proposed activities.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>This mapping gives founders, notaries and licensing consultants a clearer basis for deciding how to describe the company&#8217;s operations.<\/p>\n<p>It also helps established companies compare their registered business scope with new products, services or project locations.<\/p>\n<p>If you are preparing incorporation documents or reviewing the licensing scope of an existing PT PMA, our <a href=\"https:\/\/investinasia.com\/id\/business-licenses\">Indonesia business licensing services&lt;\/a can help with OSS registration, NIB applications and sector-specific licensing requirements.<\/a><\/p>\n<p>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.<\/p>\n<div style=\"background: #223666; border-radius: 8px; padding: 24px; margin: 32px 0; text-align: center;\">\n<p style=\"margin: 0 0 8px 0; font-size: 18px; font-weight: bold; color: #ffffff; text-align: center;\">Need to Confirm Your KBLI Before Registering?<\/p>\n<p style=\"margin: 0 0 20px 0; color: #d5e6e5; font-size: 14px; text-align: center;\">Review your OSS and licensing requirements with our Indonesia market entry team, supported by vOffice and IZIN.co.id.<\/p>\n<div style=\"text-align: center;\"><a style=\"background: #ffffff; color: #223666; padding: 12px 32px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/investinasia.com\/id\/business-licenses\">View Business Licensing Services<\/a><\/div>\n<div style=\"height: 15px;\"><\/div>\n<div style=\"text-align: center;\"><a style=\"background: #25D366; color: #ffffff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/wa.me\/6281295665565?text=Hello%2C%20I%20would%20like%20help%20checking%20my%20KBLI%20codes%20and%20Indonesia%20business%20licensing%20requirements.%0A%0ASource%3A%20article%20%22KBLI%20Indonesia%3A%20How%20Business%20Classification%20Works%20for%20Foreign%20Investors%22%20(SEO)\" target=\"_blank\" rel=\"noopener nofollow\">Discuss Your KBLI on WhatsApp<\/a><\/div>\n<\/div>\n<p style=\"font-size: 0.875em; color: #686868; margin: 24px 0 16px 0;\"><strong>Regulatory sources checked:<\/strong> 22 September 2026. Check the official OSS entry and applicable sector regulations for your specific business activity before submitting an application.<\/p>\n<div style=\"overflow-x: auto;\">\n<section><strong>References<\/strong><\/p>\n<ol>\n<li>Statistics Indonesia. (2025). Peraturan Badan Pusat Statistik Nomor 7 Tahun 2025 tentang Klasifikasi Baku Lapangan Usaha Indonesia. Established 17 December 2025; promulgated 18 December 2025. Retrieved from<br \/>\nhttps:\/\/peraturan.go.id\/id\/peraturan-bps-no-7-tahun-2025<\/li>\n<li>Statistics Indonesia. (2025, December 19). BPS releases the 2025 Indonesian Standard Industrial Classification in line with current economic dynamics. Retrieved from<br \/>\nhttps:\/\/www.bps.go.id\/en\/news\/2025\/12\/19\/828\/bps-rilis-klasifikasi-baku-lapangan-usaha-indonesia&#8211;kbli-.html<\/li>\n<li>Government of Indonesia. (2021). Presidential Regulation No. 10 of 2021 on Business Sectors for Investment. Retrieved from<br \/>\nhttps:\/\/peraturan.go.id\/id\/perpres-no-10-tahun-2021<\/li>\n<li>Government of Indonesia. (2021). Presidential Regulation No. 49 of 2021 amending Presidential Regulation No. 10 of 2021. Retrieved from<br \/>\nhttps:\/\/peraturan.go.id\/id\/perpres-no-49-tahun-2021<\/li>\n<li>Government of Indonesia. (2025). Government Regulation No. 28 of 2025 on Risk-Based Business Licensing. Retrieved from<br \/>\nhttps:\/\/peraturan.go.id\/id\/pp-no-28-tahun-2025<\/li>\n<li>Ministry of Investment and Downstreaming\/BKPM. (2025). Ministerial Regulation No. 5 of 2025 on Guidelines and Procedures for Risk-Based Business Licensing and Investment Facilities Through the Online Single Submission System. Retrieved from<br \/>\nhttps:\/\/jdih.bkpm.go.id\/id\/document\/peraturan-menteri-investasi-dan-hilirisasikepala-badan-koordinasi-penanaman-modal-nomor-5-tahun-2025-tentang-pedoman-dan-tata-cara-penyelenggaraan-perizinan-berusaha-berbasis-risiko-dan-fas<\/li>\n<li>Statistics Indonesia. (2026, April 27). Pemerintah memastikan KBLI 2025 tidak memerlukan perizinan baru. Official announcement concerning the KBLI 2025 implementation policy and the joint ministerial circular. Retrieved from<br \/>\nhttps:\/\/www.bps.go.id\/id\/news\/2026\/04\/27\/898\/pemerintah-memastikan-kbli-2025-tidak-memerlukan-perizinan-baru.html<\/li>\n<li>Online Single Submission. (2026). Guide to understanding KBLI conversion. Accessed 22 September 2026. Retrieved from<br \/>\nhttps:\/\/oss.go.id\/en\/kbli\/konversi\/panduan<\/li>\n<li>Online Single Submission. (2026). KBLI 2020 to KBLI 2025 conversion tool. Accessed 22 September 2026. Retrieved from<br \/>\nhttps:\/\/oss.go.id\/en\/kbli\/konversi<\/li>\n<li>Online Single Submission. (2026). KBLI 71102 conversion details. Accessed 22 September 2026. Retrieved from<br \/>\nhttps:\/\/oss.go.id\/id\/kbli\/konversi\/71102<\/li>\n<li>Statistics Indonesia. (2026). Klasifikasi Baku Lapangan Usaha Indonesia database. Accessed 22 September 2026. Retrieved from<br \/>\nhttps:\/\/klasifikasi.web.bps.go.id\/app\/kbli<\/li>\n<li>Online Single Submission. (2026). Business licenses to support business activities (PB-UMKU). Accessed 22 September 2026. Retrieved from<br \/>\nhttps:\/\/oss.go.id\/id\/umku<\/li>\n<\/ol>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is KBLI in Indonesia, and why is it so crucial for foreign investors who are ready to set up their companies in Indonesia? Check it here.<\/p>\n","protected":false},"author":1,"featured_media":17443,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indonesia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>KBLI Indonesia: Business Codes for Foreign Investors | InvestinAsia<\/title>\n<meta name=\"description\" content=\"Learn how KBLI 2025 affects foreign ownership, OSS licensing and PT PMA investment planning. 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