shutterstock_1676568130.jpg

Standard Indonesian Business Field Classifications

The Definition of KBLI

KBLI is one of the standard classifications published by BPS for economic activities. In terms of classifying Indonesia's economic activities into business sectors, KBLI provides consistent and interrelated classification structures. KBLI classifies Indonesian economic activities or activities that produce products or outputs in the form of goods or services based on the business fields used as a standard and coordination tools, integration, and synchronization of statistics.

 

The most recent version is the 2020 KBLI which BPS has issued through BPS Reg. No. 2/2020. In particular, the said issuance revokes the 2015 KBLI and 2017 KBLI. Moreover, the 2020 KBLI has accommodated various types of emerging business models that were not provided by 2017 KBLI.

The Importance of KBLI

To understand all types of businesses in Indonesia, including its classifications, future investors can refer to the KBLI as stipulated in the Appendix of BPS Reg. No. 2/2020. KBLI assists prospective investors in determining their business activities.

Every business field has its own code under the KBLI. The KBLI code shall be listed in the AoA of the company. Moreover, KBLI shall be considered in the issuance of:

  • NIB, namely the identity of the entrepreneur issued by the Government of the Republic of Indonesia after the entrepreneur undertakes a registration; and

  • business licensing, namely the registration which is granted to the entrepreneur to start and undertake business and/or activities.

The Structure of KBLI

KBLI has been developed with reference to the International Standard Classification of All Economic Activities (ISIC) by the United Nations up to the level of 4 (four) digits and adjusted to ASEAN Common Industrial Classification (ACIC) and East Asia Manufacturing Statistics (EAMS). Due to the conditions of economic activities in Indonesia, the 2020 KBLI develops up to the level of 5 (five) digits which is now applicable in Indonesia. The structure of the KBLI numbers in the 2020 KBLI according to BPS is as follows:

The Structure of KBLI.png

The Structure of KBLI

Source: Launching and Socialization of KBLI 2020 by BPS

For instance, the trading activity of fruits under KBLI No. 46312 is part of Section G relating to wholesale and retail trade. The main category of the KBLI is indicated by the first 2 (two) digits of the KBLI number, namely 4 (four) and 6 (six). The 3rd (third) digit, namely 3 (three), indicates the category of food, beverages, and tobacco wholesale trade. The 4th (fourth) digit, namely 1 (one), indicates the sub-category of large-scale trade in agricultural food and beverage ingredients. The 5th (fifth) digit, namely 2 (two), indicates the group which includes a large trading activity of fruits to be used as final consumption such as oranges, apples, mangos, and other fruits.