Economic activities carried out by business entities/companies in Indonesia can be classified into several types. The classification division is known as the Indonesian Standard Industrial Classification or commonly known as KBLI. Yes, choosing the KBLI code is an absolute requirement when KH Friend establishes a company. In addition to determining the required business license, in the trade sector the KBLI code is also used to determine the type of business process in applying for a business license. So, KH pals must use the KBLI code in accordance with the company’s business model so as not to hinder the process of establishing and managing their business licenses. Then actually, what is KBLI? What is the importance and how to choose the right classification for your business field? Check out the full details in the following article.
Definition of KBLI
KBLI is a code compiled by the Central Bureau of Statistics (BPS) with reference to the Standard Classification of All Economic Activities (ISIC), East Asia Manufacturing Statistics (EAMS), and ASEAN Common Industrial Classification (ACIC).
This code consisting of 4-5 numbers determines the business field of a company and will be recorded in the Online Single Submission (OSS) system, which can then be used by the company when it wants to register its business license in NIB or deed.
Because it provides a classification of business activities, the KBLI can also be utilized for economic purposes. Where the KBLI can be used to study the behavior of economic units. In addition, KBLI also provides information needed in monitoring and evaluating the achievements of businesses or the economy in a certain period of time, for example in the preparation of Gross Domestic Product (GDP). For example, with the use of KBLI codes, it can be seen how much an industry in Indonesia contributes to GDP.
Function of KBLI
As explained earlier, KBLI can be used for a variety of economic activities ranging from classifying business fields, facilitating business licenses, to monitoring and evaluating economic achievements such as GDP. But besides that, there are several other KBLI functions, among others:
- As a standard reference and tool for coordination, integration, and synchronization of statistical implementation
- Determination of the qualification of the type of business activity in the application letter for Tanda Daftar Perusahaan (TDP) and Surat Izin Usaha Perdagangan (SIUP)
- As a reference for registering and obtaining other business legalities in Indonesia, for example NIB
- Determining investment licenses or investments that may be made
- Business identification for taxpayer registration
KBLI OSS Mapping for Non-Individual and Trade Business Actors
In Article 22 of Government Regulation (PP) No. 24/2018, it is explained that non-individual business actors who register in OSS are required to fill in data on the type of business field according to KBLI. Without the correct use of KBLI, various business licenses such as Trading Business License (SIUP), Company Registration Certificate (TDP), and others will not be able to be obtained. Permendag No. 8/2020 and Permendag No. 64/2020 also describe the licensing of new types of trade business activities. The regulation also maps the KBLI code through Appendix I of MOT 64/2020, and divides the types of business processes as follows:
- Type 1: Business License without fulfillment of commitments
- Type 2: Business License with technical requirements
- Type 3: Business License with fee requirements
- Type 4: Business License with technical and cost requirements
With the type of business process, KH Pals must first classify your business field according to the existing type division. That is the explanation of the OSS KBLI code that KH Friend must know before taking care of business licensing, especially in the trade sector. Make sure to take care of KBLI precisely and carefully to avoid mistakes. Do not let the KBLI code that KH Friend lists is the result of an estimate and it turns out that the guess or estimate does not match the actual business activity. This will certainly result in warnings, administrative fines, temporary suspension of business activities, and revocation of business licenses. Yes, KBLI is important because it is used as the basis for determining the qualification of a trade business license which also applies for economic analysis purposes. Simply put, KBLI will be very influential in the establishment of business entities and the issuance of business licenses.
KH Contact
Well, to make it easier to determine the KBLI code that is in accordance with the classification and processing of business licenses, KH pals can contact Kontrak Hukum. Kontrak Hukum is the first digital platform that provides the easiest and fastest legal services, without face-to-face. With KH, you don’t need to worry about taking care of business licenses and establishing a business entity because we provide PT creation services quickly and at affordable prices, including the necessary business licenses such as deeds, NPWP, NIB, NPWP, and other OSS documents. Curious what the year-end promo from Kontrak Hukum is like? For more information, KH pals can visit the page https://kontrakhukum.com/memulai-usaha/ Still have questions about KBLI and other business needs? Don’t hesitate to consult with Kontrak Hukum by contacting us via the following link Ask KH. Let’s make your business license processing easier by enjoying year-end promo prices from Kontrak Hukum!
