This month, the government through the Investment Coordinating Board (BKPM) plans to launch the risk-based Online Single Submission (OSS) or Risk Based Approach (RBA). For information, OSS RBA is a business licensing system where licenses will be granted based on the level of risk/potential for injury or loss from a hazard or a combination of possibilities and consequences of hazards from business activities. After OSS RBA takes effect and launches as of August 09, 2021, the 2017 KBLI which was previously used as a reference for business classification codes as well as a guide in applying for business licenses at OSS is no longer valid because it has been replaced by the 2020 KBLI. Changes in the KBLI are made because the 2017 KBLI is considered no longer in accordance with the demands in the field and the times so that adjustments need to be made. Now that the OSS RBA has been officially launched, the Central Statistics Agency (BPS) has updated and formalized the KBLI 2020. Now to find out more about KBLI 2020 and what are the changes in it, Contract Law will discuss it below. KBLI or Indonesian Standard Business Field Classification is a classification code used to classify Indonesian economic activities that produce products/outputs in the form of goods and services, based on business fields.
KBLI at a glance
KBLI consists of several digit numbers, the name of the business field, and the product scope of the business field. In addition to determining the qualifications of a business field, KBLI also serves as a reference for registering and obtaining business legality in Indonesia, such as a Business Identification Number (NIB). KBLI also has a function to determine the investment licensing that can be carried out. In general, KBLI 2020 and KBLI 2017 still refer to the same reference, namely ISIC Rev. 4 which consists of 21 categories so that in the content itself, there are no significant changes. However, in KBLI 2020, there is a structure in the form of shifting or grouping an activity from one classification to another, and adding new classifications due to the development of economic activity so that there are additional groups of independent business fields. As a result of the addition of business field categories in KBLI 2020, the classification code of the 3-digit KBLI increased by 5, the 4-digit KBLI increased by 47, while the 5-digit KBLI increased by 216. In addition to the addition of classification codes, there are also code rearrangements in several business fields, for example, classification code 47724 which was previously used for retail trade in traditional medicines in KBLI 2020 is rearranged to retail trade in cosmetics for humans. In addition, there is also a simplification or merger of business categories with other categories that are more appropriate, for example in the forestry business sector. In KBLI 2017, forest tenure is divided into forest tenure of mahogany, rosewood, sandalwood, alkasia, etc.
Changes in KBLI 2020
In KBLI 2020, the classification has been deleted and combined into community plantation forest timber utilization with code 02113. As mentioned above, changes to the 2020 KBLI occurred due to technological developments/digitalization or adjustments to field conditions. Changes to the business process in question occur, for example in:
- Financial sector such as restructuring the classification and adjustment of nomenclature in banking, cooperatives, financing in securities, Fintech P2P lending.
- Technology fields such as blockchain programming, artificial intelligence programming, digital identity provision, electronic certificate provision, IoT consulting.
- Creative content fields such as Augmented Reality/Virtual Reality content creation; creative content design such as movies, animation, games; creative content writing.
- Education sector such as Cooperative Education Unit; religious education, pesantren.
- Simplification of star hotel classification.
- Fishing activities according to ISSCFG gear references and CITES appendices.
- Integrated electricity business from generation to sales.
- Vehicle battery stone industry.
- Personnel/professional certification activities, job training activities.
- Social fundraising.
- Garbage and waste management And various other fields that can be seen in detail.
- There is a strict regulation regarding the KBLI of Wholesale Trade and Retail Trade which cannot be combined.
To find out more completely what are the changes in the business fields in KBLI 2020, KH Friend can directly visit the 2020 Indonesian Standard Business Field Classification page. In addition, the OSS RBA system classifies the forms of business entities based on their authorized capital, namely:
- MSME and/or small business classification: Capital below Rp.5M
- Medium classification business field: Capital between Rp. 5M and Rp. 10M
- High classification business field: Capital above Rp. 10M
Because the 2020 KBLI has officially taken effect, business actors who are using OSS RBA for the first time to process licenses will automatically use the 2020 KBLI. Meanwhile, business actors who previously used the 2017 KBLI in processing licenses are required to make adjustments to the 2020 KBLI. So when business actors log into the OSS account, the system will display the conversion from KBLI 2020 and business actors only need to confirm. Read also: Get to know KBLI, OSS Code to Facilitate Trade Business License
KH Contact
Well, KH Friend, that’s the explanation of the 2020 KBLI changes that have just been issued by the government. For business actors who are currently planning to start a business and want to take care of licensing in OSS, don’t forget to pay attention to the latest 2020 KBLI rules. Remember, business actors also need to know and understand the right KBLI number for the business to be established. Because when business actors include the wrong KBLI number, the NIB application can be rejected, the impact is that the business license and operational license for the business entity 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. If you need legal consultation related to KBLI or want to take care of business legality, Kontrak Hukum is ready to help you. Kontrak Hukum has professional and trusted consultants so you don’t need to worry about using legal services from Kontrak Hukum. KH pals can directly contact Kontrak Hukum at the following link Tanya KH.
