Introduction to Indonesia’s Industrial Classification Standard (KBLI)

What is KBLI?

When you are about to establish your business in a country, it is natural to research the territory’s related regulations. In this case, if you want to establish a business activity in Indonesia, it is crucial for you to understand the concept of KBLI (Klasifikasi Baku Lapangan Usaha Indonesia—Indonesia’s Industrial Classification Standard). The main point of KBLI is a segmentation of business activities in Indonesia, where the main purpose of it is to know your business identity, regulation, and risk classification. If you just heard about this recently, we are sure the KBLI might be confusing, so we’ll give you a proper introduction. 

  • Why Do You Need to List Your Business’s KBLI Number?

KBLI is one of the most important aspects of establishing a business in Indonesia lately. It serves as a business activity classification; reference for the government in issuing legal documents; and your business’s risk-based approach. 

You also can’t just randomly list your Business’s KBLI, but consider to choose the perfect one, since if the government discover that your business activity differs from the classification mentioned in the legal documents may create some new problems, or worse, ends up in the forced closure by the government—take the late Holywings case for example.

  • Latest Updates on KBLI

The KBLI has gone through a few changes, and you need to make sure you’re choosing your business activity category from the right one. The latest version, KBLI published in September 2020, has been updated to keep up with the latest types of jobs and business types. The following key changes are introduced:

  1. Integration across licensing systems through the government’s Online Single Submission (OSS) and the Ministry of Law and Human Rights database.
  2. Correlation Table between KBLI 2017 and 2020 to integrate across Indonesian licensing platforms.
  3. More business activities categories are introduced, more than 200 additional business lines to keep up with new kinds of industries—especially creative ones. 

IZIN Foreign Services

Since choosing the right KBLI classification might be confusing for foreigners and it is undoubtedly one of the most important aspects in establishing a business activitiy in Indonesia, IZIN Foreign Services can help you to get things done. Check our promos, products, and guidelines on the link below!