New KBLI Rules for PT Creation? What are the changes?

A few weeks ago, President Joko Widodo officially enacted Presidential Regulation No. 10 of 2021 on Investment Business Fields.
This derivative regulation of the Job Creation Law opens opportunities for business actors to be able to choose more business fields than before.
For example, in appendix III of Presidential Regulation No. 10 of 2021, it is stated that the business sector of the cracker, chips, peyek and the like industry is included in the list of business fields with certain requirements, with the condition of 100 percent domestic investment (PMDN).
(KBLI code number 10794).
This means that PT PMDN can now choose KBLI code number 10794, which previously could only be chosen by MSMEs.
In addition to the changes in the business sector, there are several other changes.
To find out what are the changes in this Perpres, Contract Law will provide an explanation below.

What is KBLI?

Before discussing the new KBLI, it is necessary to know first that KBLI or Indonesian Standard Business Field Classification is to classify Indonesian economic activities/activities that produce products/outputs in the form of goods and services, based on business fields/business fields that are used as standard references and tools for coordination, integration, and synchronization of statistical implementation.
KBLI consists of the name of the business field, several digit numbers, and product coverage of the business field.
In addition to determining the qualifications of a business field, KBLI also serves as a determination of investment licensing/investment in Indonesia.
It is important for business actors to know and understand the right KBLI number for the business to be established.
This is because one of the requirements that must be completed when a business actor wants to apply for an NIB is the business field.
In PP No. 5 of 2021, what is meant by the business field is the business field regulated in KBLI.
This means that business actors must include the KBLI number in the NIB application.
Keep in mind that NIB is required when applying for business licenses and other operational licenses for business entities.
When business actors incorrectly include the KBLI number, the NIB application can be rejected and business actors cannot obtain NIB, the impact is that business licenses and operational licenses for business entities to be established cannot also be submitted.
Even if the NIB has been received but the activities carried out are not in accordance with the chosen KBLI number, the business actor may be subject to sanctions.
These provisions make KBLI very crucial in the establishment of a PT.
Article 2 of Presidential Regulation No. 10 of 2021 states that all business fields are open for investment activities, except for business fields that are declared closed to investment or for activities that can only be carried out by the Central Government.
In the Job Creation Law Article 77 number 2, the closed business fields referred to include:

Cultivation and industry of class I narcotics.
Any form of gambling and/or casino activities.
Catching fish species listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (crrES).
Utilization or collection of coral and utilization or collection of coral from nature used for building materials/lime/calcium, aquariums, and souvenirs/jewelry, as well as live coral orrecent death coral from nature.
Chemical weapons manufacturing industry.
Industrial chemicals industry and ozone-depleting substances industry.

This means that business actors are prohibited from creating business entities or PTs engaged in the business fields as mentioned above.
Then, what are the business fields that can be chosen by the company?
In Presidential Regulation No. 10 of 2021, the open business fields that can be chosen by business actors consist of:

Priority business sectors are business sectors that meet the criteria of national strategic programs/projects, capital intensive, labor intensive, high technology, pioneer industries, export orientation, and/or orientation in research, development, and innovation activities.
Specifically for this business sector, the government also provides fiscal incentives and non-fiscal incentives such as tax holidays and the provision of supporting infrastructure.
Allocated business sectors or partnerships with cooperatives and MSMEs with the criteria of business activities that do not use technology or that use simple technology, business activities that have specific processes, are labor-intensive, and have a special or hereditary cultural heritage, and/or business capital activities not exceeding IDR 10 billion.
Lines of business with certain requirements are lines of business that can be operated by all investors including cooperatives and MSMEs that meet the investment requirements for domestic investors, investment requirements with restrictions on foreign capital ownership, or investment requirements with special licenses.
However, the provisions for foreign investment requirements do not apply if the investment is made in a Special Economic Zone.
Businesses that do not fall under these three areas.

KH Contact

Well Friend KH, those are the provisions and changes in Presidential Regulation No. 10 of 2021.
If you need legal consultation related to KBLI or business legality, Kontrak Hukum is ready to help you.
Kontrak Hukum has professional consultants and has been trusted so that KH Friend does not need to worry about the legality of KH Friend’s business because Kontrak Hukum can help KH Friend solve problems quickly, easily, and affordably.
Simply contact Kontrak Hukum at the Ask KH link.
Read also: KH Services – Licensing and Taxation