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
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)|
|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|
|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|
|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.