Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2025

Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2025

  • InCorp Editorial Team
  • 7 November 2024
  • 6 reading time

Foreign investors must navigate various legal requirements when investing in Indonesia to ensure smooth business operations. One essential requirement is aligning with the Indonesian Standard Industrial Classification, Klasifikasi Baku Lapangan Usaha Indonesia, or KBLI 2025.

The KBLI classification plays a critical role. It identifies and categorizes each business activity in compliance with Indonesia’s regulatory framework, enabling efficient licensing and legal operations.

What Is KBLI and What Does It Mean?

KBLI is a method for segmenting Indonesia’s economic activities into several business fields. The distinction is made based on output produced in the form of goods and services.

It is issued by Indonesia’s Central Statistic Agency (Badan Pusat Statistik or BPS) by referring to the International Standard Industrial Classification of All Economic Activities (ISIC), ASEAN Common Industrial Classification (ACIC), and East Asia Manufacturing Statistics (EAMS).

Understanding KBLI and its application process might be confusing for foreign investors. This article will help you understand the basic principles of KBLI and how to determine the right KBLI for your business activities.

KBLI 2025: The Importance of KBLI

The KBLI is paramount for a business. Not only does it classify business activities, but it also acts as a reference for the government in issuing legal documents such as a Business Identification Number (NIB), Trading Business License (SIUP), Taxpayer Identification Number (NPWP), and so on.

Suppose the business activities differ from the classification mentioned in the KBLI certificate. In that case, undertaking any activity that requires a special permit under KBLI can be challenging for the concerned business. Examples of such activities could be importing and exporting goods.

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The Structure of KBLI 2025

The KBLI 2025 adopts a detailed five-digit structure to standardize and classify economic activities. Here’s a breakdown of the KBLI structure:

Section

  • The first digit of a KBLI code is an alphabetical identifier that indicates the main classification of economic activities, broadly defining the industry sector (e.g., agriculture, manufacturing).

Main Category

  • The second digit further refines the classification by describing the business section. A two-digit code represents each business section, grouping similar industries according to their core functions.

Category

  • The third digit extends the classification into a three-digit code, where the first two digits connect to the main category, and the third digit specifies the distinct economic activity within that category.

Sub-Category

  • This four-digit section identifies sub-categories under each main category, offering a more granular breakdown of activities. The last digit specifies distinct economic activities within the sub-category.

Group

  • The fifth digit represents the final grouping, detailing closely related economic activities within the sub-category. This five-digit code specifies each unique business activity, differentiating even niche industries.

Example

If your business involves the wholesale trade of fruits, your KBLI code is 46312. Here’s how it breaks down:

  • Section G: Represents wholesale and retail trade.
  • Main Category 46: Denotes wholesale trade in various sectors.
  • Category 463: Indicates wholesale trade of food, beverages, and tobacco.
  • Sub-Category 4631: Refers to wholesale trade in agricultural food and beverage products.
  • Group 46312: Specifies wholesale trade in fruits for end-consumer markets.

KBLI 2025: How to Choose The Right One?

There are three key steps to learning to check KBLI correctly. Following these steps will help ensure that your business complies with Indonesia’s regulatory standards.

Refer to The OSS

Although Indonesia has a wide range of economic activities, applicants can use the Online Single Submission (OSS) method to identify the most appropriate one. KBLI OSS 2025 currently has 21 business activity categories (ranging from Category A to U), each with its own set of industries.

For instance, Category C is assigned to the manufacturing industry and divided into several sub-groups, such as food, beverage, tobacco, textile, footwear, etc.

Define Your Business Main Group

Every business category contains a set of the business’s main groups. For instance, a footwear manufacturing business falls under Category C with a code of 152.

Get Your Five Digits KBLI

The Indonesian government wants every business owner to classify their company further according to its core activities.

Then, if you deeper further into the footwear manufacturing main group, it is further magnified into four more specific categories with their respective codes:

  • 01 – regarding footwear for daily use;
  • 02 – regarding footwear for sports activities,
  • 03 – regarding footwear for field and industrial activities and
  • 04 – regarding footwear for other purposes.

So, if your company manufactures running shoes, the five-digit KBLI will be 15202.

It’s also worth noting that the Indonesian government enables a business to have multiple KBLIs, provided the various businesses are related. However, it’s recommended that all of these activities be related to or similar to the main one.

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KBLI 2025: The Latest Updates

On 24 September 2020, BPS, commonly known as Indonesia Statistic Agency, issued KBLI 2020 to replace KBLI 2017. The new KBLI has been introduced to keep up with new types of jobs, business models, and creative industries, such as YouTubers and online content creators.

Following are the fundamental changes introduced:

Integration Across Licensing Systems

The government intends to synchronize all business fields with the Online Single Submission (OSS) System and the Ministry of Law and Human Rights (MOLHR) database.

Correlation Table

Statistics Indonesia, or BPS, issued a correlation table between KBLI 2017 and KBLI 2020*, which will be integrated across Indonesian licensing platforms to trigger automatic changes.

Online Search Engine and Consultation

Statistics Indonesia also launched an online search engine called Sabaku to help investors search suitable business lines via web and mobile apps.

Open More Opportunities for Investors

Investors who want to develop a commercial presence in Indonesia may be able to take advantage of KBLI 2020. More than 200 business lines have been added to KBLI 2020 (one such example is video game content designer), and several existing business lines have also been expanded to incorporate more goods or services.

In summary, the KBLI certification is beneficial in obtaining legal documents and ensuring a business’s smooth and legal functioning.

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Get Your KBLI 2025 with InCorp

Determining the right KBLI is important when setting up a business in Indonesia. It can be complex, and seeking legal expertise ensures you avoid potential mistakes and comply with local regulations.

InCorp offers a comprehensive business setup solution, providing expert assistance throughout the process, including:

  • Business Setup: We simplify the company registration process, guiding you through every step to establish your business legally in Indonesia.
  • KBLI Guidance: Our consultants help you identify and select the appropriate KBLI code under the latest KBLI 2025, ensuring your business activities are classified correctly and comply with Indonesia’s regulatory framework.

Why Choose InCorp?

  • Expertise in navigating Indonesian business regulations.
  • Hassle-free assistance with obtaining business licenses.
  • Tailored advice for selecting the right KBLI for your industry.

Fill out the form below to let InCorp easily support your business growth and legal compliance.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.