Standard Classification of Indonesian Business Fields (KBLI) is a method to classify Indonesia’s economic activities into several business sectors and sub-sectors. Therefore, every business entity in Indonesia has its own KBLI code, which is in the form of a five-digit code issued by the Central Statistics Agency (BPS) aiming to ease the determination of business categories. The KBLI codes, both for main business sectors and the sub-sectors, are listed on the Online Single Submission (OSS) website, the descriptions of which have been explained in detail.
The regulation on KBLI was updated in September 2020 through BPS Regulation Number 2 of 2020 on KBLI. The new KBLI, which adds a total of 216 sectors and sub-sectors, is set to accommodate various types of new business activities that were not covered by the previous regulation in 2017. Aside from introducing the new codes, the substantial changes in the new regulation also classify license requirements of business entities based on the analysis of risks and potential risks posed by the business classification, both social and environmental risks.
The KBLI codes set the foundation for business establishment and also serves as a reference for the government to issue legal documents, such as Deed of Establishment (Akta Pendirian), Business Identification Number (NIB), and Taxpayer Identification Number (NPWP).
Determining KBLI can be cumbersome at times, especially if we are not familiar with the system. However, by following the right steps and getting the right guidance, the process of determining KBLI can be easier:
- Go to OSS.go.id and find the “Information” tab and choose the “Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) 2020” page.
- Choose one of the business categories provided, from A to U. After that, choose one main group with a three-digit code. Examine the choices on the main group to find the right business activities until you get the right five-digit code.
- Choose several KBLI codes based on the description of the business classification according to your business activities. If you have more than one business activity, you have to select more than one KBLI.
- Check the risk category of your KBLI after selecting a five-digit code. The risk levels are: low, medium low, medium high, or high.
It should be noted that before proceeding with business legalities, such as Deed of Establishment, NIB, NPWP, and other business licenses, you have to make sure that your company has chosen the right KBLI code in accordance with the business classifications. Furthermore, since KBLI will determine the requirements of various business licenses on the OSS, the KBLI codes you choose must cover all of your business streams, both main business line and the additional business services. Therefore, it is recommended that you consult with the experts as well as with the company’s founders before choosing the KBLI codes.
ET Consultant is the right partner for your company if you need to discuss the correct KBLI for your business. We have a number of experienced consultants who will guide you with your company’s various needs from establishment and incorporation, business licenses, immigration formalities, compliance, and many others. Make sure to contact us to get your consultation session.
ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.
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