Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2025

Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2025

  • InCorp Editorial Team
  • 4 July 2025
  • 6 minutes reading time

Foreign investors must navigate various legal requirements when investing in Indonesia to ensure smooth business operations. One essential requirement is aligning with the Indonesian Standard Industrial Classification, Klasifikasi Baku Lapangan Usaha Indonesia, or KBLI 2025.

The KBLI classification plays a critical role. It identifies and categorizes each business activity in compliance with Indonesia’s regulatory framework, enabling efficient licensing and legal operations.

What Is KBLI and What Does It Mean?

KBLI is a method for segmenting Indonesia’s economic activities into several business fields. The distinction is made based on output produced in the form of goods and services.

It is issued by Indonesia’s Central Statistic Agency (Badan Pusat Statistik or BPS) by referring to the International Standard Industrial Classification of All Economic Activities (ISIC), ASEAN Common Industrial Classification (ACIC), and East Asia Manufacturing Statistics (EAMS).

Understanding KBLI and its application process might be confusing for foreign investors. This article will help you understand the basic principles of KBLI and how to determine the right KBLI for your business activities.

KBLI 2025: The Importance of KBLI

The KBLI is paramount for a business. Not only does it classify business activities, but it also acts as a reference for the government in issuing legal documents such as a Business Identification Number (NIB), Trading Business License (SIUP), Taxpayer Identification Number (NPWP), and so on.

Suppose the business activities differ from the classification mentioned in the KBLI certificate. In that case, undertaking any activity that requires a special permit under KBLI can be challenging for the concerned business. Examples of such activities could be importing and exporting goods.

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The Structure of KBLI 2025

The KBLI 2025 adopts a detailed five-digit structure to standardize and classify economic activities. Here’s a breakdown of the KBLI structure:

Section

  • The first digit of a KBLI code is an alphabetical identifier that indicates the main classification of economic activities, broadly defining the industry sector (e.g., agriculture, manufacturing).

Main Category

  • The second digit further refines the classification by describing the business section. A two-digit code represents each business section, grouping similar industries according to their core functions.

Category

  • The third digit extends the classification into a three-digit code, where the first two digits connect to the main category, and the third digit specifies the distinct economic activity within that category.

Sub-Category

  • This four-digit section identifies sub-categories under each main category, offering a more granular breakdown of activities. The last digit specifies distinct economic activities within the sub-category.

Group

  • The fifth digit represents the final grouping, detailing closely related economic activities within the sub-category. This five-digit code specifies each unique business activity, differentiating even niche industries.

Example

If your business involves the wholesale trade of fruits, your KBLI code is 46312. Here’s how it breaks down:

  • Section G: Represents wholesale and retail trade.
  • Main Category 46: Denotes wholesale trade in various sectors.
  • Category 463: Indicates wholesale trade of food, beverages, and tobacco.
  • Sub-Category 4631: Refers to wholesale trade in agricultural food and beverage products.
  • Group 46312: Specifies wholesale trade in fruits for end-consumer markets.

KBLI 2025: How to Choose The Right One?

There are three key steps to learning to check KBLI correctly. Following these steps will help ensure that your business complies with Indonesia’s regulatory standards.

Refer to The OSS

Although Indonesia has a wide range of economic activities, applicants can use the Online Single Submission (OSS) method to identify the most appropriate one. KBLI OSS 2025 currently has 21 business activity categories (ranging from Category A to U), each with its own set of industries.

For instance, Category C is assigned to the manufacturing industry and divided into several sub-groups, such as food, beverage, tobacco, textile, footwear, etc.

Define Your Business Main Group

Every business category contains a set of the business’s main groups. For instance, a footwear manufacturing business falls under Category C with a code of 152.

Get Your Five Digits KBLI

The Indonesian government wants every business owner to classify their company further according to its core activities.

Then, if you deeper further into the footwear manufacturing main group, it is further magnified into four more specific categories with their respective codes:

  • 01 – regarding footwear for daily use;
  • 02 – regarding footwear for sports activities,
  • 03 – regarding footwear for field and industrial activities and
  • 04 – regarding footwear for other purposes.

So, if your company manufactures running shoes, the five-digit KBLI will be 15202.

It’s also worth noting that the Indonesian government enables a business to have multiple KBLIs, provided the various businesses are related. However, it’s recommended that all of these activities be related to or similar to the main one.

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KBLI 2025: The Latest Updates

On 24 September 2020, BPS, commonly known as Indonesia Statistic Agency, issued KBLI 2020 to replace KBLI 2017. The new KBLI has been introduced to keep up with new types of jobs, business models, and creative industries, such as YouTubers and online content creators.

Following are the fundamental changes introduced:

Integration Across Licensing Systems

The government intends to synchronize all business fields with the Online Single Submission (OSS) System and the Ministry of Law and Human Rights (MOLHR) database.

Correlation Table

Statistics Indonesia, or BPS, issued a correlation table between KBLI 2017 and KBLI 2020*, which will be integrated across Indonesian licensing platforms to trigger automatic changes.

Online Search Engine and Consultation

Statistics Indonesia also launched an online search engine called Sabaku to help investors search suitable business lines via web and mobile apps.

Open More Opportunities for Investors

Investors who want to develop a commercial presence in Indonesia may be able to take advantage of KBLI 2020. More than 200 business lines have been added to KBLI 2020 (one such example is video game content designer), and several existing business lines have also been expanded to incorporate more goods or services.

In summary, the KBLI certification is beneficial in obtaining legal documents and ensuring a business’s smooth and legal functioning.

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Get Your KBLI 2025 with InCorp

Determining the right KBLI is important when setting up a business in Indonesia. It can be complex, and seeking legal expertise ensures you avoid potential mistakes and comply with local regulations.

InCorp Indonesia (an Ascentium Company) offers a comprehensive business setup solution, providing expert assistance throughout the process, including:

  • Business Setup: We simplify the company registration process, guiding you through every step to establish your business legally in Indonesia.
  • KBLI Guidance: Our consultants help you identify and select the appropriate KBLI code under the latest KBLI 2025, ensuring your business activities are classified correctly and comply with Indonesia’s regulatory framework.

Why Choose InCorp?

  • Expertise in navigating Indonesian business regulations.
  • Hassle-free assistance with obtaining business licenses.
  • Tailored advice for selecting the right KBLI for your industry.

Fill out the form below to let InCorp easily support your business growth and legal compliance.

Verified by

Hotdo Nauli

Senior Legal & Delivery Manager at InCorp Indonesia

Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). 

Frequently Asked Questions

    A foreigner is not allowed to form a CV in Indonesia

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.

      • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

    Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.

    In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:

    • Business Identification Number (NIB)

      • Low-risk businesses needing only an NIB

    • Standard Certification
    • Standard Certification is necessary for medium-low and medium-high-risk businesses
    • Licenses/Permits

    High-risk businesses require licenses/permits
    Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).

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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.

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