Foreign investors must select KBLI codes that match the activities their Indonesian company will conduct. Indonesia now uses KBLI 2025, and choosing the wrong code can affect whether the company can legally carry out its planned activities.
How Does KBLI Affect a Foreign-Owned Company?
Foreign ownership restrictions are applied according to the business activity. A KBLI may cover an activity that is fully open to foreign ownership, subject to an ownership limit, reserved for domestic investors, or subject to other conditions.
Unsure how KBLI 2025 affects your business activities? Email info@mapresourcesindonesia.com
The KBLI also determines the licensing requirements generated through Indonesia’s risk-based licensing system. Depending on the activity and its risk level, a company may require more than its Business Identification Number (NIB) before it can operate.
How Do You Choose the Correct KBLI?
Investors should identify the activities the company will conduct in Indonesia and match each one to the relevant KBLI 2025 code.
A company should not select a broad or similar-sounding KBLI simply because it appears to cover its industry. Different activities within the same sector can have different foreign ownership and licensing requirements.
The selected activities should also match the company’s corporate documents and the activities registered through OSS.
Can a PT PMA Have More Than One KBLI?
A PT PMA can conduct multiple business activities and register more than one KBLI where its planned operations require them.
Each activity must be assessed separately because different KBLIs can have different foreign ownership and licensing requirements. Investors should check each code before deciding to register several activities under one PT PMA.
What Has Changed Under KBLI 2025?
KBLI 2025 replaced KBLI 2020 and updated Indonesia’s classification of business activities. Some codes remain unchanged, while others have changed, been split, merged, or restructured under KBLI 2025.
OSS provides a conversion function for comparing previous KBLI 2020 classifications with the corresponding classifications under KBLI 2025.
What If an Existing Company’s KBLI Has Changed?
An existing company with business activities registered under KBLI 2020 should check how those activities convert to KBLI 2025 through OSS.
Adding a new business activity in Indonesia? MAP can review the required KBLI at info@mapresourcesindonesia.com
The conversion does not mean every company automatically needs to amend its corporate documents. The company should check whether the new classification changes what the registered activity covers and whether its corporate documents or business licenses need to be updated.
If the company is adding or changing its actual business activities, it may also need to update its corporate documents and obtain licensing for the new activities.
What Happens If You Choose the Wrong KBLI?
An incorrect KBLI can leave the company’s actual business activity outside the scope of its registration. It can also result in the wrong licensing requirements or create problems if the activity is subject to foreign ownership restrictions.
Correcting the KBLI can require changes to the company’s registered activities, OSS information, or licenses, depending on the nature of the mismatch.
Choose the Right KBLI With MAP Resources Indonesia
MAP Resources Indonesia assists foreign investors with KBLI selection, PT PMA establishment, OSS registration, and business licensing. Contact us at info@mapresourcesindonesia.com.
