KBLI: Indonesia’s Business Classification System Explained for Foreign Investors

KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, which is the official Indonesian business classification system used to categorize all economic activities in the country.

It was developed by Indonesia’s Badan Pusat Statistik (BPS) and is referenced throughout government systems and regulations for identifying the type of business activity carried out by a company or individual.

The most current version in use is KBLI 2020, which is integrated into Indonesia’s licensing and business registration framework.

Each business activity in Indonesia is assigned a unique five‑digit KBLI code. This code serves as a standardized way of describing what a business does, whether it produces goods, provides services, engages in trade, or operates in other economic sectors.

Why KBLI Matters for Foreign Investors

Foreign investors looking to set up a company, such as a PT PMA (foreign‑owned limited liability company), must understand and select the correct KBLI codes early in the process. The KBLI code you choose will have immediate implications for:

• Licensing requirements: Under the Online Single Submission – Risk Based Approach (OSS‑RBA), each KBLI code carries a defined level of risk (low, medium, or high). Your risk category determines what kind of permits or additional documents are needed on top of the foundational Nomor Induk Berusaha (NIB) business registration number.
• Regulatory compliance: The KBLI code affects which sector‑specific laws and regulations apply to your business. For example, a restaurant will be subject to health and safety regulations that a consulting firm is not.
• Eligibility for permits and incentives: Some government programs, incentives, or investment benefits are tied to specific business sectors and their KBLI classifications.
• Official business documentation: Your KBLI codes are recorded in your company’s Articles of Association, NIB, and all related permits. They legally define what you are authorized to do. Incorrect codes can delay or block approvals.

How to Find and Choose the Right KBLI Code

Step 1: Understand Your Business Activities

Start by identifying your primary business activity. This usually aligns with what generates your main revenue. If you expect to operate in multiple areas, you can have both a main KBLI and additional supporting KBLI codes.

Step 2: Search the Official OSS KBLI List

Indonesia’s OSS portal provides a searchable list of all KBLI codes. Foreign investors must register on the OSS RBA platform and, during the business registration process, enter keywords related to their planned activities. The system will list matching KBLI codes for selection.

Step 3: Match Code Descriptions Carefully

Each KBLI code has a specific description that must closely reflect the actual business operations. Generic or incorrect choices often cause issues during licensing, permit reviews, or post‑registration compliance. It is recommended to read the full description of any prospective KBLI code before selection.

Step 4: Consider Foreign Ownership Rules

Some KBLI codes are associated with sectors that have limitations on foreign ownership under Indonesia’s Positive Investment List (a policy framework separate from KBLI but used in conjunction with it). Before finalizing your KBLI, check if your planned business activity permits full foreign ownership or if it requires a local partner.

Step 5: Add Supporting KBLI Codes If Needed

If your business will operate multiple activities, for example, consulting plus training services, you should include both a primary and supporting KBLI in your OSS application. This complete representation helps avoid compliance or licensing issues later.

KBLI Structure

The KBLI system is hierarchical. Codes start broad and become more specific:

• Category: A letter or broad sector group
• Group: Two‑digit classification
• Sub‑group and class: Increasing specificity, ultimately leading to a five‑digit unique activity code

For example, categories cover agriculture, mining, manufacturing, trade, professional services, and technology. Within each category, dozens of detailed codes exist to represent precise activities.

KBLI and Indonesia’s Licensing System (OSS‑RBA)

Indonesia’s Online Single Submission Risk Based Approach (OSS‑RBA) is the official electronic system for business registration and licensing. It integrates KBLI codes into legal processes:

• You must obtain a NIB through OSS‑RBA to operate legally in Indonesia.
• A correct KBLI code is required to complete your NIB application.
• The OSS‑RBA system assigns risk levels to each KBLI, determining whether you need only a NIB or additional permits such as technical approvals, environmental impact analyses, or sectoral licenses.

If the chosen KBLI is not aligned with your actual business scope, the system may flag issues, leading to delays in licensing or additional compliance hurdles. It is sometimes necessary to revise the KBLI and update your company’s Articles of Association.

Read more: Getting a Business License and Permit in Indonesia

Examples of KBLI Use Cases

Here are a few common scenarios relevant to foreign investors:

• A technology services company might select a KBLI code associated with software development or digital platforms.
• A consulting firm will choose a code under professional, scientific, and technical activities.
• A hospitality or tourism business, such as villa management or travel services, selects codes specific to accommodation or travel agency operations.
• A virtual office provider would choose a low‑risk KBLI like virtual office and related business services.

Selecting appropriate KBLI codes ensures that permissions and permits align with your business model.

What Happens if You Choose the Wrong KBLI

Using an incorrect KBLI code can create compliance problems. Applications for NIB or subsequent permits can be rejected, or after approval, authorities may question the legality of operations.

In some cases, formal amendments to business registration documents are required to correct the code.

KBLI Updates and Future Considerations

KBLI codes evolve over time to reflect changes in economic activity and new industries. The 2020 version added many new codes and refined older classifications.

Foreign investors should always refer to the latest KBLI list in OSS and consider consulting local legal or corporate services to ensure accurate classification.

Read more: Foreign Company Registration Options in Indonesia: Process and Requirements

Let Visa BaliEasy Help You Navigate KBLI and Start Your Business in Indonesia

Visa BaliEasy makes setting up your business in Indonesia process simple and stress-free, from selecting the right KBLI code to securing your business permits. Here’s how we can help:

• Expert Assistance with KBLI: We’ll help you choose the right KBLI code for your business and guide you through the registration process.
• 24/7 Human Customer Support: Always available to answer your questions and provide guidance.
• PT PMA Setup: We can assist in setting up your foreign-owned company (PT PMA) with all the required permits.
• Clear, Transparent Pricing: No hidden fees, know exactly what you’re paying for.
• Investor KITAS: Need a KITAS for your investment? We help with Investor KITAS applications and requirements.
• Bridging visa: Need a Bridging visa to stay in Indonesia while your permanent visa is processed? We’ve got you covered.

Start your business with confidence, Visa BaliEasy is here to ensure a smooth and compliant setup for all foreign investors.