Written by Kevin Tan , Foreign Client Director
Last updated: 24 June 2026
Why the KBLI code is the most important decision you’ll make
In Indonesia, almost every consequence of company setup flows from your KBLI code. It decides how much of the company a foreigner may own, what OSS risk level you fall under, which licences and certificates you must obtain, whether you can sponsor work and investor KITAS, and even which tax facilities you can claim. Two businesses that look identical to a founder can sit in completely different regulatory worlds because of one digit.
This is why we never start an incorporation with the notary. We start with the classification — mapping what your business actually does to the right 5-digit codes, then reading those codes against the Positive Investment List and the OSS risk matrix.
Foreign ownership: how the Positive Investment List works
Since 2021, the Positive Investment List (Perpres 10/2021, amended by Perpres 49/2021) governs foreign ownership. The default is open: unless a regulation restricts or closes a line, it is open to 100% foreign ownership. Against that default, each KBLI can carry one of a few conditions:
- Fully open — 100% foreign ownership allowed.
- Conditional — a ceiling such as 49% or 67%, or a requirement to partner with a local entity.
- Reserved or partnership — set aside for cooperatives and MSMEs, or open only in partnership with them.
- Priority — eligible for incentives such as tax allowances or holidays.
Because the condition attaches to the code, not the industry in the abstract, the only reliable answer to “can I own 100%?” comes from checking your exact KBLI.
KBLI 2025 and the 18 June 2026 migration
Indonesia refreshed the KBLI classification and tied it to the risk-based OSS system. Existing companies had to migrate their OSS business profiles to the KBLI 2025 structure, with a hard deadline of 18 June 2026. Codes were split, merged and renumbered, so an older code may no longer map cleanly — and companies that missed the migration are now finding their OSS accounts blocked and their KITAS renewals stalled.
If your company already exists and you’re unsure whether it migrated correctly, that’s a recovery job, not a fresh classification — see KBLI 2025 Migration & OSS Recovery.
Risk level drives your timeline and cost
Risk-based licensing under GR 28/2025. Your KBLI sets the level, which sets the documents, cost and timeline.
What the CLAN check delivers
- Activity mapping — we translate your business model into specific, defensible KBLI codes (including secondary codes for ancillary activities).
- Ownership confirmation — the foreign-ownership ceiling for each code, with the regulation cited, so your cap table is structured correctly from day one.
- Risk & licence list — the OSS risk level per code and the licences, certificates and sector approvals each one triggers.
- Bali zoning sanity-check — confirmation that your activity is permitted at your intended address before you sign a lease.
- A clear roadmap — the codes, ownership and permits in one document you can take to your notary and your board.