How to choose Business Field Number (KBLI) for Foreign Investment in Indonesia
A. What is KBLI (Business Fields Classification)?
KBLI is Indonesia’s Standard Classification of Business Fields, similar to:
· NAICS (North America)
· NACE (EU)
Every business in Indonesia must choose at least one five-digit KBLI code that describes its commercial activity. This code affects:
· Whether your business is open to foreign ownership
· What licenses or permits you need
· The risk level of your business, based on the OSS Risk-Based Approach
B. Why is KBLI Important for Foreign Investors?
For foreign investors, the KBLI code is essential because it determines whether an investment is legally allowed in Indonesia—and under what terms.:
Selecting the right KBLI ensures your business is compliant with foreign investment rules. Misclassification can lead to rejection of applications or delays in licensing.
Before incorporating a company, foreign investors must carefully match their business activity to the correct KBLI and check its status under the Positive Investment List. This step is critical to avoid legal and operational setbacks
C. How to Check Business Fields (KBLI) for Foreign Investment
Step 1: Identify Your Business Activity
Before searching for a KBLI code, it is crucial to first define your business activity with clarity and precision. This means translating your business model into concrete operational terms that reflect the actual goods or services your company will provide in Indonesia.
Avoid using broad or general labels such as “technology” or “consulting.” Instead, break down your activity into specific functions. For example:
- Instead of “Tech company” → define as “Developing and licensing SaaS products”
- Instead of “Retail” → define as “Operating an online platform for fashion accessories”
- Instead of “Logistics” → define as “Providing warehousing and last-mile delivery services”
Step 2: Search for KBLI at the OSS Risk-Based Portal
Use the official OSS Risk-Based Licensing Portal:
OSS Portal: https://oss.go.id/informasi/kbli-berbasis-risiko
The OSS system and the KBLI portal are only available in Bahasa Indonesia.
If you’re a foreign investor, we recommend using:
- Google Chrome’s built-in translator: Right-click → “Translate to English”
- Google Translate Plugin for Chrome or Edge
- Or a local consultant if you want precise guidance
Step 3: Check the Positive Investment List (DPI)
Indonesia’s Positive Investment List (Daftar Positif Investasi/DPI), issued under Presidential Regulation No. 49/2021, determines whether a specific KBLI code is open to foreign ownership, and if so, under what conditions.
Each KBLI will fall into one of the following categories:
Step 4: Check Sector-Specific Rules
Although a business activity may be classified under a KBLI code and marked as open to foreign investment, not all activities may commence operations immediately after obtaining a Business Identification Number (NIB). This is due to additional licensing obligations regulated by sectoral ministries or competent authorities, which require fulfillment of technical permits to ensure full regulatory compliance. Each strategic sector in Indonesia is governed by its own set of regulations and procedures for obtaining operational licenses. The table below highlights common sectors and their corresponding authorities:
Once a legal entity in the form of a Foreign Investment Company (PT PMA) has been established and its NIB issued, the company is generally permitted to:
- Open a corporate bank account
- Lease office space or supporting facilities
- Hire employees
- Prepare for business operations
However, the company cannot commence commercial operations until all required sector-specific licenses from the respective technical ministries are obtained. This stage is known within the OSS RBA system as the activation of sectoral business licensing.
Step 5: Verify Business Incentives – Tax Holiday Opportunities
Indonesia provides fiscal incentives to attract investments in priority sectors. One of the most significant benefits is the Tax Holiday, which grants a corporate income tax exemption for a defined period. This facility applies to companies classified under Pioneer Industries with a minimum capital investment of IDR 100 billion (approximately USD 6.5 million).
To verify whether your business qualifies, go to the OSS portal at oss.go.id
- Open the “Informations” section from the top menu,
- Then select “Business Facilities” and
- navigate to “Tax Holiday”
- Input your target KBLI code to see
- If it is listed as part of a Pioneer Industry. The portal provides comprehensive details, including product scope and eligibility.
For example, KBLI 29300 (motor vehicle manufacturing) and 30912 (battery industry for electric vehicles) are listed as qualifying business fields. The system describes their activities in detail, such as production of engine components or electric vehicle systems.
Selecting the correct business field (KBLI) is more than just an administrative requirement—it is the foundation of a compliant and sustainable investment in Indonesia. A misstep in classification can cause delays, licensing issues, or even limit your ability to operate effectively. With Indonesia’s regulatory framework becoming increasingly detailed and risk-based, having the right guidance is essential.
At MyLegal Indonesia, we combine legal expertise with practical experience to help foreign investors navigate these complexities and determine the most suitable business fields for their operations. Our knowledge ensures that your investment is structured correctly from the start, saving time and minimizing risk.
MyLegal is to provide professional services for environmental and industrial permitting, mining, and legal affairs in Indonesia. The company specializes in helping clients obtain permits and comply with regulations related to environmental protection, mining operations, and other industrial activities.
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