Updated Standard Indonesia Business Classification Introduced by The Indonesian Government

On 24 September 2020, Indonesia’s Central Bureau of Statistics/Badan Pusat Statistik (“BPS”) issued an updated Standard Indonesia Business Classification/Klasifikasi Baku Lapangan Usaha Indonesia (“KBLI”). The KBLI provides a list of business activity classifications and descriptions of each business in Indonesia. We note that the enactment of this new KBLI has revoked the previous KBLI has revoked the previous KBLI which was issued in 2017 (“KBLI 2017”).

For your reference, please click here to access the complete KBLI 2020.

Legal Framework: In preparing the below executive summary, we refer to the BPS Regulation No. 2 of 2020 on Standard Indonesia Business Classification (“KBLI 2020”).

Main Keys of the Updated KBLI 2020: Please find the below; our note on the KBLI 2020 and main keys on notable changes on the updated KBLI 2020.

Purposes of KBLI 2020: We note that the KBLI 2020 was prepared by the BPS and relevant ministries to accommodate Indonesia’s emerging business activities that have not yet been stipulated under the KBLI 2017.

On a related note, the government aims to harmonize all business activities across several licensing systems to be using KBLI 2020, including the current Online Single Submission (“OSS”) System and the Ministry of Law and Human Rights (“MOLHR”) database system.

New Business Classification in KBLI 2020: We note that the KBLI 2020 introduces a total of 216 new business classification codes, including the following codes to accommodate the development of financial technology in Indonesia: 

Sector

Sub-Sector

Payment System Operator

 

66411 – Payment Services Provider

66412 – Payment System Infrastructure Operator
66413 – Payment Systems Supporting Operator
Fintech based Peer-to-peer Lending (“P2P”)

64951 – Conventional P2P Lending

64952 – Sharia P2P Lending

64953 – Sharia Business Unit Fintech P2P Lending 

Impact of the enactment of KBLI 2020 to the Existing Companies: The following are impacts of the enactment of KBLI 2020 to the existing companies:

Type of Company

Remark

Company who has performed mandatory adjustment of its business activities to be in accordance with KBLI 2017 (“Mandatory Adjustment”)
  • Company who has managed to perform the Mandatory Adjustment are not required to re-adjust its business activities to KBLI 2020 since the OSS will provide an automatic synchronization feature in in the near future.
  • BPS will issue a correlation table between KBLI 2017 and KBLI 2020 for the basis of OSS automatic synchronization feature.

Company who has not performed Mandatory Adjustment

We note that any company which has yet performed the Mandatory Adjustment must adjust its business activity to be in line with KBLI 2017.

Sibaku Mobile Application: BPS has also launched its mobile application called Sibaku last September. We note that this application provides a complete list of KBLI 2020, KBLI 2017, Standard Indonesia Job Classification/Klasifikasi Baku Jenis Pekerjaan Indonesia (“KBJI”) 2014 and KBJI 2015. This innovation hopefully will help the investor to carry out its initial assessment when establishing their business in Indonesia.

 

The article above was prepared by Marshall S. Situmorang (Partner) and Aniendita Rahmawati (Associate). 

Disclaimer: The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances. For more information, please contact us at mail@nusantaralegal.com.