For investors, startups, and foreign companies, choosing the right KBLI isn’t just about ticking boxes. It defines what your company is allowed to do, how it’s regulated, and which licenses you’ll need from the start.
With the 2025 KBLI revision expected to align even closer with international standards and the ASEAN Common Framework, now is the time for business owners and foreign investors to get familiar with the system that sits at the core of Indonesia’s business identity.
What is KBLI?
The KBLI (Klasifikasi Baku Lapangan Usaha Indonesia), Indonesian Business Classification or is the official industrial classification system, administered by Badan Pusat Statistik (BPS), that groups every registered business activity into standardized five-digit codes.
In essence, your company’s chosen KBLI becomes a foundational piece of its identity. the code under which you register, report, and operate. It’s not just an administrative detail: it defines how the regulatory, licensing and statistical apparatus treats your business.
How does KBLI impact Indonesian Business?
Selecting the wrong KBLI can ripple into costly delays or compliance risks. For example, your business’s legal entity, its licences, import-export activity, and even your eligibility for certain government programmes hinge on the correct code.
Put another way: when you register your business in the Online Single Submission (OSS) system, your code feeds into your NIB (Nomor Induk Berusaha) and other permits; mis-matching your actual activity could stall operations or trigger sanctions.
Licensing & risk in OSS: Your KBLI determines whether you fall into low, medium-low, medium-high, or high risk, which directly affects which licenses (and inspections) you must obtain before operating. A mismatch between your real activity and the code slows approvals and raises compliance exposure.
Investment eligibility: Foreign shareholding limits and incentives are tied to business fields referenced to KBLI under the Positive Investment List. Select the wrong code and you may inadvertently push your business into a restricted or partnership-required lane.
Statistics & banking: Banks, insurers, and regulators use KBLI to profile risk and sector exposure. Accurate classification improves KYC/AML onboarding and credit discussions.
Structures of KBLI
At its core, the KBLI structure follows a hierarchical five-tier system, adapted from the United Nations’ International Standard Industrial Classification (ISIC) but customized to Indonesia’s economic ecosystem.
1. Sections (A–U): The Broad Economic Umbrella
The highest and broadest layer, the Sections group industries into 21 alphabetic categories from A to U, representing the full range of economic activities.
Examples include:
- A – Agriculture, Forestry, and Fishing
- C – Manufacturing
- J – Information and Communication
- K – Financial and Insurance Activities
- N – Administrative and Support Services Activities
These Sections serve as the macroeconomic framework, reflecting how local economy is structured by sectoral contribution.
2. Divisions (2-Digit Code): Defining Core Industry Clusters
Each Section is subdivided into Divisions, represented by two digits (e.g., 10 = Food Manufacturing, 62 = Computer Programming).
These divisions define core industry families, showing how broad economic sectors break down into functional clusters. For instance, Section C (Manufacturing) contains Division 10 for Food Products and Division 13 for Textiles.
3. Groups (3-Digit Code): The Mid-Level Category
Divisions are further segmented into Groups, represented by three digits. Groups narrow the focus within a division—for example:
- 107 – Manufacture of Bakery Products
- 620 – Computer Programming, Consultancy, and Related Activities
This level begins to illustrate how industries operate in domestic and export-oriented economy.
4. Classes (4-Digit Code): Specific Business Functions
Classes specify distinct operational areas within each group and provide a sharper lens for defining a company’s business model.
Examples include:
- 1071 – Manufacture of Bread and Other Bakery Products
- 6201 – Computer Programming Activities
These classifications are often used in business registration, tax identification, and licensing processes to define the exact nature of a company’s activities.
5. Sub-Classes (5-Digit Code): The Most Detailed Registration Level
At the most granular level, Sub-Classes (5-digit) represent the precise legal category of a business under Online Single Submission (OSS) system.
This is the level recognized by:
- The Ministry of Law and Human Rights (MOLHR) for company incorporation,
- The Directorate General of Taxes (DGT) for tax identification (NPWP), and
- The BKPM for investment and licensing.
Each classification entry includes:
- Title (the business activity)
- Description (what’s included)
- Inclusions and Exclusions (what’s not covered)
For example:
- 10711 – Manufacture of Bread
- 62012 – Web Portal Development and Maintenance
These 5-digit codes are the most operationally relevant, as they determine what business licenses a company must obtain, what taxes it is subject to, and what sector-specific regulations apply.
Pro Tip: Many businesses choose a code that “sounds right” but later discover their activity is excluded in the fine print. Always verify it through the BPS KBLI portal or OSS index before drafting your deed of establishment.
Types of Business KBLIs in Indonesia (and Where to Find the Complete List)
KBLIs are divided into primary, secondary, and tertiary sectors, encompassing all recognized industries in Indonesia:
- Primary: agriculture, fisheries, mining.
- Secondary: manufacturing, energy, construction.
- Tertiary: trade, tourism, finance, information technology, creative industries.
The official and complete KBLI list can be found on:
- The BPS (Statistics Indonesia) website.
- The OSS (Online Single Submission) platform, used by the Ministry of Investment/BKPM.
KBLI Codes: How to choose the right KBLI classification for foreign businesses in Indonesia
Foreign investors registering a PT PMA (Foreign-Owned Company) must choose KBLI codes that comply with the Positive Investment List.
Some sectors allow 100% foreign ownership, while others require local partnerships. Choosing the right code helps determine your ownership limits, required licenses, and capital investment thresholds.
Example:
- KBLI 62010 – Computer Programming allows 100% foreign ownership.
- KBLI 56301 – Bars and Nightclubs remain partially restricted.
LMI Consultancy recommends a KBLI audit before registration to ensure your selected codes align with your business objectives and investment plan.
Latest updates about KBLI in Indonesia
As of early 2025, Indonesia is undergoing a KBLI alignment update led by BPS and the Ministry of Investment (BKPM) to include:
- Digital services and e-commerce subcategories for better policy tracking.
- Green economy codes covering carbon trading, renewable energy, and ESG consulting.
- Professional services revisions for freelancers, consultants, and hybrid industries.
- Integrated data mapping between KBLI and the OSS Risk-Based Approach (RBA) to improve license transparency.
These updates aim to enhance ease of doing business, streamline licensing, and attract more foreign direct investment (FDI) through clearer classification.
Choosing KBLI and Registering your business in Indonesia with LMI Consultancy
Selecting the right KBLI is a strategic decision that determines your company’s growth potential.
At LMI Consultancy, our advisors specialize in helping foreign investors, expats, and corporate clients navigate Indonesia’s complex licensing and regulatory framework.
Our team assists with:
- KBLI analysis and selection.
- PT PMA company establishment.
- OSS registration and NIB issuance.
- Post-registration compliance and tax setup.
With over a decade of experience and thousands of successful company setups, LMI Consultancy ensures your business starts right—from choosing the correct business classification to obtaining full legal compliance.
Contact LMI Consultancy today for expert guidance on your KBLI selection and business registration in Indonesia.
