Navigating the Indonesia KBLI Directory: The Complete List of 100% Foreign-Owned Sectors

For many international investors, Indonesia looks straightforward at first glance: choose a business activity, register a PT PMA, obtain an OSS license, and start operating. In practice, the most important decision is often made much earlier — when you choose the company’s KBLI code.

The KBLI code determines how Indonesian authorities understand your business. It tells the system whether your company is a software developer, a wholesale trader, a restaurant operator, a logistics provider, a manufacturer, a digital platform, or a consulting firm. That classification then affects whether foreign ownership is allowed, what licenses are required, and whether the business can be operated by a fully foreign-owned entity.

This guide is written for founders, foreign investors, regional holding companies, consultants, and in-house legal or finance teams that need a practical way to understand the Indonesia KBLI directory. It does not try to replace a formal legal review. Instead, it explains how to think about KBLI selection before you commit capital, sign a lease, hire employees, or begin the Indonesia company registration process.

What is KBLI in Indonesia?

KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, or Indonesian Standard Industrial Classification. It is the official business activity classification system used by Indonesian authorities to identify the nature of a company’s activities.

Every business activity in Indonesia is assigned a specific KBLI code. A company can have one main KBLI code and, where appropriate, additional KBLI codes for supporting activities. For example, a business may develop software, operate an online platform, and distribute physical products. Each activity may need to be mapped separately.

For foreign investors, KBLI is especially important because it affects:

• Whether foreign ownership is allowed
• The maximum percentage of foreign shareholding
• Whether a PT PMA structure is required
• The type of license required through the OSS system
• The company’s risk classification
• The minimum investment and capital expectations
• The permits, certificates, and sector approvals needed before operation
• Whether the company can legally issue invoices for the intended activity

In simple terms, KBLI is the foundation of your Indonesian market entry strategy. Choosing the wrong code can delay licensing, trigger compliance issues, or prevent your company from legally conducting the activity it was created to perform.

Why KBLI matters for foreign investors

Foreign investors usually enter Indonesia by establishing a PT PMA, which is a foreign investment limited liability company. During incorporation, the company must select one or more KBLI codes that match its business activities.

Each KBLI code is linked to Indonesia’s investment rules. Some codes are fully open to foreign investors. Others are subject to foreign ownership caps, local partnership requirements, minimum scale requirements, special licensing, or restrictions for micro, small, and medium enterprises.

This is why KBLI should be reviewed before incorporation. Changing a company’s business activity later may require amendments to company documents, OSS updates, revised licenses, additional permits, and sometimes a new compliance review. For investors working on tight timelines, that can delay bank account opening, hiring, tax registration, import arrangements, and commercial launch.

If you are still at the planning stage, it is usually more efficient to align your business model, ownership structure, and KBLI codes before starting the Indonesia company incorporation process.

How 100% foreign ownership works in Indonesia

Indonesia now follows a more open investment framework under the Positive Investment List. In general, business fields are open to investment unless they are specifically restricted, reserved, conditionally open, or closed.

For foreign investors, a sector may fall into one of five practical categories:

• 100% foreign-owned: Full foreign ownership is generally allowed through a PT PMA.
• Partially open: Foreign ownership is capped at a certain percentage.
• Partnership required: The business requires cooperation with Indonesian cooperatives or MSMEs.
• Reserved for domestic or MSME businesses: Foreign investors cannot directly operate the activity at the reserved scale.
• Closed: The activity is not open for private or foreign investment.

This is why investors should never rely only on a broad industry label. “Retail,” “technology,” “education,” “media,” “logistics,” and “finance” can each contain multiple KBLI codes with different rules. A software business may be open, while a payment-related technology business may need financial regulator approval. A wholesale trading company may be allowed, while certain small retail models may be restricted.

Indonesia KBLI and PT PMA company registration

KBLI selection is closely tied to PT PMA registration. A PT PMA is the standard company structure used when a foreign individual, foreign company, or overseas holding entity owns shares in an Indonesian company.

During PT PMA setup, the selected KBLI code will usually influence:

• The wording of the company’s business purpose in its deed of establishment
• The company’s OSS Business Identification Number, commonly known as NIB
• The business license or standard certificate required after registration
• The company’s eligibility for full foreign ownership
• The capital and investment plan that must be recorded
• The type of commercial activities the company can legally conduct

For example, a foreign investor who wants to provide IT consulting should not simply register any “technology” activity. The company should select a KBLI code that reflects the actual service: software development, IT consulting, data processing, hosting, digital platform operation, or another relevant activity. The same logic applies to trading, manufacturing, logistics, and tourism.

The complete list of major 100% foreign-owned sector categories

The following table summarizes major sector categories that are commonly open to 100% foreign ownership in Indonesia, subject to the exact KBLI code, business scale, OSS risk level, investment value, and sector-specific permits.

Popular KBLI examples for foreign investors

Below are examples of business activities frequently reviewed by foreign investors. The exact code should always be confirmed before incorporation because descriptions, licensing requirements, and sector rules may change.

• Software development: Often used by SaaS companies, app developers, and IT service providers.
• Web portals and digital platforms: Common for online marketplaces, digital platforms, and internet-based services.
• Management consulting: Used by business advisory, strategy, market entry, and corporate consulting firms.
• Wholesale trading: Used for import, export, and B2B distribution models.
• Manufacturing activities: Used by companies producing goods locally for domestic sale or export.
• Warehousing and logistics support: Used by supply chain, storage, and fulfillment businesses.
• Data processing and hosting: Used by cloud, infrastructure, and digital operations companies.
• Design and creative services: Used by branding, product design, digital design, and creative production firms.
• Business process support: Used by companies providing outsourced administrative or operational support.
• Export procurement: Used by overseas groups sourcing products from Indonesian suppliers.

A common mistake is to select a KBLI code that sounds close enough but does not match the actual commercial activity. For example, “consulting” may not be suitable for a company that is actually reselling imported products. “Technology” may not be enough for a platform that handles payments, lending, insurance, or financial data. “Trading” may not cover local retail stores, marketplaces, or direct-to-consumer operations in the same way.

How to read a KBLI code before investing

A KBLI code should be read from three angles: business activity, ownership eligibility, and licensing impact.

1. Business activity match

First, check whether the description of the KBLI code truly matches how the company earns revenue. The code should reflect what the company actually does in Indonesia, not only what the parent company does overseas.

2. Foreign ownership eligibility

Second, review whether the activity is open to 100% foreign ownership. If the code is restricted or reserved for local businesses, the investor may need a different structure, a local partner, a revised business model, or a different KBLI code.

3. OSS licensing impact

Third, check what licenses will be required after company registration. A low-risk activity may be relatively simple, while a medium-high or high-risk activity may require standard certificates, operational permits, technical approvals, or physical inspections.

Sectors that may not be 100% foreign-owned

Not every business in Indonesia is open to full foreign ownership. Some activities may be capped, require local participation, or be reserved for Indonesian businesses.

Commonly sensitive areas include:

• Small-scale retail and convenience store activities
• Certain telecommunications and media activities
• Some financial services, lending, payment, insurance, and capital market activities
• Education and healthcare activities requiring special permits
• Natural resources, mining, energy, and plantation activities requiring sector approvals
• Transportation, port, aviation, and courier activities with specific licensing rules
• Activities reserved for cooperatives or MSMEs
• Activities prohibited under Indonesian law, such as gambling and certain narcotics-related activities

How to choose the right KBLI code for a PT PMA

Choosing the right KBLI code should be done before company incorporation, not after. A strong KBLI strategy begins with the company’s real commercial activity.

Step 1: Define the actual business model

Start by describing how the company will make money in Indonesia. Will it sell products, provide software, operate a marketplace, manufacture goods, advise clients, import goods, or manage logistics? Avoid vague descriptions such as “general business,” “online service,” or “investment activity.”

Step 2: Separate main and supporting activities

A company may need more than one KBLI code. For example, a digital commerce company may need one code for platform activity and another for wholesale distribution, depending on how revenue is generated and how goods move through the business.

Step 3: Check foreign ownership eligibility

Each proposed KBLI code should be checked against the current foreign ownership rules. If one selected code is restricted, it can affect the entire investment structure or require additional planning before incorporation.

Step 4: Review OSS risk-based licensing

Indonesia uses a risk-based licensing system. Low-risk activities may require only a Business Identification Number, while medium- or high-risk activities may require standard certificates, operational licenses, technical approvals, inspections, or ongoing reporting obligations.

Step 5: Confirm capital and investment requirements

Foreign-owned companies are generally expected to meet minimum investment and paid-up capital requirements. Some sectors may have higher thresholds, project-location rules, or sector-specific capital requirements. The KBLI code, business location, and intended activities should be reviewed together before capital is injected.

For investors who want a practical registration roadmap, this guide to registering a company in Indonesia can be used alongside KBLI screening to understand the broader incorporation process.

Real-world examples of KBLI selection

The easiest way to understand KBLI is to look at real business scenarios. The same foreign investor may need a very different KBLI setup depending on how the business actually operates.

Example 1: Singapore SaaS company selling to Indonesian clients

A Singapore SaaS company wants to hire a local team in Jakarta and invoice Indonesian enterprise clients. At first, the company may think it only needs a general consulting code. However, if the Indonesian entity is developing software, providing implementation services, and offering technical support, software development or IT consulting-related KBLI codes may be more suitable.

Example 2: European brand importing products into Indonesia

A European consumer goods brand wants to import products into Indonesia and sell them to local distributors. The company may need a wholesale trading-related KBLI, not a retail store code. If the company later opens its own stores, additional review may be required because retail activities can be treated differently from wholesale distribution.

Example 3: US startup building a marketplace

A US startup wants to operate an Indonesian marketplace connecting sellers and buyers. The platform may fall under web portal or digital platform-related KBLI activities. However, if the platform also manages payment flow, credit, delivery, advertising, or regulated products, the company may need additional regulatory checks beyond the basic KBLI review.

Example 4: Foreign investor opening a Bali hospitality business

A hospitality investor may select a tourism or accommodation-related KBLI code. But the KBLI code alone is not enough. The investor must also review land use, zoning, building approvals, tourism permits, local licensing, tax obligations, and employment rules. In hospitality, location compliance is often just as important as foreign ownership eligibility.

Common KBLI mistakes foreign investors should avoid

• Choosing a broad code: A general code may not accurately match the real activity.
• Using an outdated classification: Older KBLI references may no longer match OSS licensing expectations.
• Ignoring supporting activities: A company may need additional codes for import, distribution, warehousing, platform operations, or support services.
• Confusing wholesale with retail: B2B trading and small-scale retail can have very different foreign ownership treatment.
• Assuming online means unregulated: Digital platforms may still trigger fintech, data protection, consumer protection, media, or sector licensing rules.
• Registering too many unrelated activities: Adding many KBLI codes can create unnecessary licensing burdens and compliance questions.
• Skipping post-licensing compliance: Obtaining an NIB is not the end of compliance. Reporting, tax, licensing, and operational permits may still apply.
• Not matching the KBLI with tax and invoicing: The company’s registered activity should support the services or goods it actually invoices.

Best KBLI strategy for foreign investors entering Indonesia

The best approach is to work backward from the business model:

1. Identify the revenue-generating activity.
2. Separate core activities from supporting activities.
3. Map each activity to the closest 5-digit KBLI code.
4. Check whether the code allows 100% foreign ownership.
5. Review OSS risk classification and required permits.
6. Confirm investment value and paid-up capital requirements.
7. Check whether additional sector approvals are required.
8. Confirm whether the proposed business location supports the activity.
9. Register the PT PMA only after the KBLI structure is clear.

When should you review KBLI with a local specialist?

Some business models are simple enough to classify quickly. Others require a closer review, especially when the activity touches regulated sectors or combines several revenue streams.

You should consider a professional KBLI review if your business involves:

• Fintech, payment, lending, insurance, or financial services
• Healthcare, medical devices, clinics, or wellness services
• Education, training certificates, or formal learning programs
• Telecommunications, media, broadcasting, or online content distribution
• Import, export, customs, warehousing, or national distribution
• Tourism, hotels, villas, restaurants, or location-sensitive operations
• Manufacturing, environmental permits, industrial estates, or product certification
• Marketplace models involving sellers, buyers, payments, logistics, and consumer protection

In these cases, KBLI review should be part of the broader incorporation plan. A professional review can help determine whether the company can be 100% foreign-owned, whether a local partner is needed, and what licenses must be obtained after registration.

Final thoughts

Indonesia remains one of Southeast Asia’s most attractive markets for foreign investors, especially in technology, digital services, consulting, manufacturing, logistics, trade, tourism, and export-oriented sectors. However, market entry success depends heavily on choosing the right KBLI code from the beginning.

A sector may appear fully open at a high level, but the exact KBLI code may carry specific requirements. Before setting up a PT PMA, foreign investors should verify the latest KBLI classification, foreign ownership status, OSS licensing requirements, minimum capital rules, location requirements, and sector-specific permits.

For investors from Singapore, Europe, the United States, Australia, and other international markets, the KBLI directory is more than a registration formality. It is the roadmap for building a compliant, scalable, and fully foreign-owned business in Indonesia.

If your next step is incorporation, start with KBLI mapping before submitting company registration documents. It is much easier to choose the right structure at the beginning than to amend licenses, update OSS records, or restructure ownership after the company is already operating.