Skip to article
HSJGlobal

INDONESIA • SERVICE CLASSIFICATION

Consulting Companies in Indonesia: Define the Services Before Choosing KBLI Codes

Translate the engagement scope into a defensible activity description before selecting a code.

“Consulting” is too broad to choose a KBLI code for an Indonesian company. Identify the deliverable, the client’s business function, any technical or professional sign-off, and whether your team only advises or also performs the underlying work. Then compare that description with the current KBLI entry and its exclusions. Old code 70209 is particularly unsafe to copy without checking the KBLI 2025 conversion.

Key takeaways

  • A marketing strategy engagement and a general organizational advisory engagement can lead to different current management-consulting entries.
  • The same number can survive a KBLI revision while its classification context changes; retain the edition and description with the code.
  • Engineering design, testing or regulated professional work needs its own boundary analysis even when the contract calls the work consulting.
  • A service-to-code schedule should state exclusions and change triggers so sales teams do not expand beyond the assessed activity.

Describe what the client actually pays you to deliver

Write a short operating description using verbs and outputs. “We advise manufacturers” describes a customer group; “we produce organizational redesign recommendations” describes work. “We manage the client’s payroll processing” adds implementation that may require a different assessment. Use a draft engagement letter, proposal or existing contract as the source for the description.

  • Identify the output: a strategy report, technical design, operating manual, implementation service or another defined deliverable.
  • Identify the role: advice to management, execution on the client’s behalf, operation of a system, professional certification or contractual responsibility for a project.
  • Identify the delivery setting: remote advisory work, a team at the client site, a specialist facility or recurring managed operations.

A consultancy serving several sectors may perform the same management function for all of them. Conversely, two teams serving the same client may conduct different activities. Classify the service, not just the customer’s industry. Keep the description clear enough that someone unfamiliar with the firm could compare it with the official KBLI scope.

For a new business, this definition should feed the articles and the proposed company setup in Indonesia record. It also gives the ownership and licensing reviewers a concrete activity to assess. Choosing a code first and reshaping the proposal later reverses that dependency.

Describe the engagement before selecting a code

Use a sample scope of work and deliverable list to identify which consulting activity needs assessment.

Read the current management consulting entries and conversions

The OSS 70209 conversion record shows that the KBLI 2020 entry for other management consulting divides into two KBLI 2025 codes. That is a substantive reason to review the description rather than carrying an old code into a new application without analysis. The current entry, edition and selected scope should appear together in your classification notes.

Current candidate What the official entry helps distinguish Selection caution
KBLI 2025 70203 Management and business consulting concerning trade and marketing functions Check the actual marketing-advisory deliverable; do not infer a general trading authorization.
KBLI 2025 70209 Other management and business consulting, including organization and management functions Read the detailed scope; the code is not an exemption for every specialist service.
KBLI 2025 70202 Industrial management consulting; OSS shows conversion from old 70204 Industrial-management advice is not automatically the same as plant engineering design.

The 70203 description addresses marketing advice and related management functions. The 70209 description addresses other organizational and management assistance. Treat these entries as candidates to compare with the contract, not as a pair of codes every consultancy must obtain. The services may fall wholly within one entry, require more than one activity or belong elsewhere.

The official industrial management consulting conversion supplies a further warning: an old code can move to another number. Record the source and review date for any conversion. A number found on an old competitor NIB is not a current classification opinion for your business.

Test technical work and implementation separately

A management recommendation and an engineering deliverable do not have the same classification boundary. The current KBLI 2025 engineering consulting entry covers technical engineering work and lists exclusions, including architectural activities, certain industrial-plant planning and technical testing or certification categories. Those exclusions matter when the engagement includes a signed design, field investigation or responsibility for technical performance.

Use the handover document to identify the boundary. A report recommending that a business improve its production scheduling is different from designing a production facility. Advice on organization is different from issuing a technical test certificate. Describe what your company promises the customer and who bears the professional responsibility for it.

When the service may enter engineering or another regulated field, make the engineering entity and professional requirements a separate workstream. The classification question comes first, but it does not replace assessment of the entity’s eligibility, personnel qualifications or relevant sector permissions.

Implementation deserves the same scrutiny. If a proposal includes running the client’s IT environment, supplying staff, selling goods or performing construction, identify that work expressly. The word “advisory” in an invoice cannot neutralize the activity actually performed. Separate the work package or assess the additional activity before agreeing the contract.

Classify the deliverable before the consultancy label A defined deliverable separates management advice from technical responsibility. Implementation and exclusions are checked before confirming the code. Define the paid deliverable Management advice Compare 702 descriptions Technical responsibility? Review specialist scope Check implementation and exclusions Then confirm the current code
The contract output determines which descriptions and exclusions need review.

Write a service-to-code schedule that sales can use

Create one schedule for the services genuinely intended to launch. Use the template below as an internal classification brief. The examples illustrate how the reasoning changes; they are not legal conclusions about a hypothetical client or pre-approved combinations of codes.

Proposed deliverable Classification reasoning to document Boundary and recheck event
Marketing strategy and brand recommendations Compare the work with the current 70203 description and selected scope Recheck if the company begins selling goods, operating campaigns or providing another distinct service.
Organization and management recommendations Compare the actual functions with the current 70209 description Recheck when implementation, staffing or specialist professional responsibility is added.
Technical design or engineering study Compare the technical entry and exclusions, then assess applicable professional rules Recheck before signing a design, certifying results or taking responsibility for a technical project.

Add the exact official description, a link, the classification version, reviewer and date beside the selected candidate in the working file. State what the company will not undertake under that assessed scope. This allows the sales team to recognize a changed engagement without needing to become classification specialists.

For mixed contracts, identify separately priced or separable deliverables where the commercial facts support doing so. Do not split one genuine technical service into an advisory line and an implementation line merely to avoid its governing requirements. The schedule should explain the business model faithfully, including subcontractors and who remains responsible to the customer.

A useful final column is the evidence still needed. That may be a fuller scope of work, a statement about who signs a deliverable or a specialist view on an exclusion. Resolve that gap before filing rather than recording a broad code “for safety.” Defined exclusions make the schedule more useful than a list of numbers.

Test a mixed service line

Flag technical sign-off, implementation and other services that may need a separate classification review.

Align the ownership and licence review with the assessed services

After selecting defensible activity candidates, check the foreign-investment position for each service and any conditions tied to the company’s intended ownership. Do not infer full foreign ownership from the existence of a code in the directory. The activity description, current investment rules and relevant sector conditions must be considered together.

Then review the project in OSS for its applicable risk level, licence outputs and supporting approvals. Keep individual professional eligibility separate from company licensing. The person qualified to sign a technical deliverable, the entity entitled to contract for the work and the immigration permission of an overseas specialist can be different questions.

For an existing consultancy, compare the accepted services with the deed and current OSS project. A new contract may require an activity amendment or additional licensing work even though the company’s brand and main client remain unchanged. Route the change before the added service becomes a delivery obligation.

Freeze the consulting scope before choosing the filing codes

Choose the code only when the paid deliverable, operating role and specialist boundaries are clear enough to justify it against the current official entry. Attach the classification schedule to the setup instructions and use it to define the initial contract scope. Keep a review trigger for services that change how the company earns its revenue or assumes responsibility.

If the scope is still described as “all consulting,” return it to the commercial team for definition. If the unresolved point concerns technical sign-off or another regulated function, obtain the relevant specialist assessment before filing. A defensible narrow launch scope is more useful than a broad classification that no one can explain.

Prepare a code selection brief

Bring the proposed services, shareholder profile and project location for a documented setup assessment.

Frequently asked questions

Does a foreign client remove the need to classify the Indonesian company’s work?

No. Describe the activity performed by the Indonesian business even when the customer is overseas. Cross-border billing does not by itself change the nature of the work.

Should every possible future service be added now?

Add activities that reflect a genuine plan and can be assessed properly. An indiscriminate code list can obscure the business model and create unnecessary licensing or investment questions.

Can the contract exclude technical responsibility if the team actually provides it?

A disclaimer does not change the substance of work delivered. Assess the actual service, personnel responsibility and outputs before relying on contract labels.

Is a KBLI code evidence of a consultant’s professional qualification?

No. A business classification describes an activity. Separate professional, individual competence or sector requirements may apply to the people or entity providing a particular service.

On this page
Chat with an Expert