On 24 September 2020, the Indonesia Government has issued an updated Indonesia Standard 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 which was issued in 2017 ("KBLI 2017"). Please click here to access the complete KBLI 2020 for your reference.
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 KBLI 2020: Please find the below, several main keys with respect to the introduction and implementation of 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.
Updated Business Classification in KBLI 2020: The KBLI 2020 adds, removes, and amends the existing business classifications and their descriptions. We note that the KBLI 2020 introduces a total of 216 new business classification codes.
KBLI for Financial Technology ("Fintech") Activities: We note that Indonesia's government has introduces several KBLI codes specifically for Fintech activities. It is in order to accommodate today's emerging of fintech in Indonesia. The following are list of KBLI code for Fintech activities:
|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 not performed Mandatory Adjustment||We note that any companies who have 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 on last September. We note that this application provides a complete list of KBLI 2020, KBLI 2017, Indonesia Standard 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 content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.