business license in indonesia - update 2019

Super News: 45 Additional Business Fields no Longer Have to Apply for Additional Licenses

  • InCorp Editorial Team
  • 20 September 2019
  • 5 minute reading time

Just like in every other country, when it comes to starting a business in Indonesia, you will have to navigate a number of government offices at local and provincial levels to apply for a business license. Different regions in Indonesia may require different types of licenses before entrepreneurs can start running their businesses.

Good news for investors, both local and foreign, the government of Indonesia has come up with more efficient ways to encourage investments into the country. Previously, the government made a successful attempt to make Indonesia a business-friendly country by simplifying the business license application process through the implementation of what is called the Online Single Submission (OSS) system.

Now, the government has added 45 business fields (Klasifikasi Baku Lapangan Usaha Indonesia – KBLI) that can start operations once they have obtained Business Identification Number (Nomor Induk Berusaha – NIB) through OSS without having to apply for additional licenses such as tourism license.

OSS Guarantees Faster and More Convenient Business Licensing Process

securing business license in indonesia

OSS is an integrated web-based business permit application that allows the business license application in Indonesia to happen as fast as two hours, making OSS is an ideal example of a fast, affordable, and certain licensing service model. Business owners and investors from anywhere across the world can now access the OSS system online anywhere and anytime.

As briefly mentioned above, a business license is required for any business activities and companies operating in Indonesia, including foreign-owned companies (PT PMA).

With the implementation of OSS that has been effective since July 2018, all business entities will have to register online. After the completion of registration at OSS, each business will automatically get a NIB one day after the registration, provided that all required documents are complete. A Business License (Surat Izin Usaha Perdagangan – SIUP) will also be granted alongside the NIB if your business does not require other licenses, which depends on the business sector your company is engaged in.

Update on Business License in Indonesia: 45 Additional KBLIs No Longer Required to Apply for Additional Licenses

If you intend to run a business in one of the following fields, you will not have to apply for any additional licenses. Once you have secured your NIB and SIUP, you can start your business operations in Indonesia immediately.

KBLI Code Business Field (Indonesian) Business Field (English)
52240 Penanganan kargo (Bongkar muat barang) Cargo & logistics (Loading & Discharging)
56103 Kedai Makanan Eatery
56304 Kedai Minuman Drink stall (coffee shop, juice counter,etc)
56305 Rumah/kedai obat tradisional Traditional and/or herbal medicine
71204 Jasa inspeksi teknik instalasi Technical installation
74201 Aktivitas fotografi Photography
80200 Aktivitas jasa sistem keamanan Security system
85500 Aktivitas penunjang pendidikan Education and/or training
36001 Penampungan,penjernihan dan penyaluran air minum Water tank, purifier and distribution of drinking water
36003 Aktivitas penunjang pengelolaan air Water management system
56104 Penyediaan makanan keliling / tempat tidak tetap Food huckster
56109 Restoran dan penyediaan makanan keliling Food merchant (i.e food truck)
56306 Penyediaan minuman keliling Drinks huckster
59201 Aktivitas perekaman suara Recording studio
59202 Aktivitas penerbitan musik dan buku musik Music publisher
79112 Agen perjalanan bukan wisata Travel agency (i.e ticketing)
81100 Aktivitas penyedia gabungan jasa penunjang fasilitas Service provider for supporting facilities
81290 Aktivitas kebersihan bangunan dan industri lainnya Cleaning service
82110 Aktivitas penyedia gabungan jasa administrasi kantor Supporting activities for office administration
82200 Aktivitas call center Call center
82302 Event organizer Event organizer
82910 Aktivitas debt collection dan biro kredit Debt collection
82990 Aktivitas jasa penunjang usaha lainnya YTDL Other supporting activities undefined in other categories
90003 Aktivitas penunjang hiburan Entertainer (i.e. photographer, make-up artist)
91025 Taman budaya Cultural park management
91029 Wisata budaya lainnya Others cultural tourism activities
92000 Aktivitas perjudian dan pertaruhan Gambling (online and offline)
96910 Aktivitas pemakanan dan kegiatan YBDI Funeral
93299 Aktivitas hiburan dan rekreasi lainnya YTDL Other amusement and recreation activities
35104 Aktivitas penunjang kelistrikan Others supporting electrical system
70100 Aktivitas kantor pusat Headquarters / office management
70202 Aktivitas konsultasi transportasi Consulting related to transportation
70203 Aktivitas kehumasan Public relations
73100 Periklanan Advertising
74901 Aktivitas penerjemah Interpreter/Translation
74902 Aktivitas konsultasi bisnis dan broker bisnis Business consultancy and brokerage
77210 Sewa guna usaha tanpa hak opsi alat rekreasi dan olahraga Lease for sport equipment & outdoor activities without option rights
77291 Aktivitas sewa guna usaha tanpa hak opsi alat pesta Lease for party equipment without option rights
77292 Aktivitas sewa guna usaha tanpa hak opsi barang keperluan rumah

tangga dan pribadi

Lease for household equipment without option rights
77293 Sewa guna usaha tanpa hak opsi barang hasil pencetakan dan penerbitan Lease for publishing goods without option rights
77294 Sewa guna usaha tanpa hak opsi bunga dan tanaman hias Lease for flower and plants without option rights
77295 Sewa guna usaha tanpa hak opsi alat musik Lease for music instrument without option rights
77299 Aktivitas sewa guna usaha tanpa hak opsi barang keperluan rumah tangga dan pribadi lainnya Lease for others household equipment without option rights
77303 Aktivitas sewa guna usaha tanpa hak opsi alat transportasi air Lease for water transportation vehicle without option rights
77400 Aktivitas sewa guna usaha tanpa hak opsi aset non finansial, bukan hak cipta Lease for non-financial assets without option rights

 

For more information about KBLI, check out Cekindo’s E-Library.

Notes for PT PMA

If your company is a PT PMA, you will still need to satisfy the requirements for the establishment of PT PMA, such as the limitation of foreign ownership as regulated under the Negative Investment List (Daftar Negatif Investasi – DNI), the minimum paid-up capital, and the investment plan. To know more about PT PMA and the benefits it offers to foreign entrepreneurs, read Registering a PT PMA in Indonesia.

Consult with Experts before Incorporating Your Business in Indonesia

To ensure seamless business incorporation in Indonesia, it is always best to consult with experts. Consisting of a team of professional consultants and legal specialists, Cekindo has been assisting thousands of clients wanting to start or expand businesses to Indonesia.

Start right by engaging one of our specialists for free. Fill in the form below or visit one of our offices that are situated in Jakarta, Bali, and Semarang.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

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.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

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.

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.