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As the starting point of a business startup, business actors must know what business field to run. This will make it easier for individual and non-individual business actors to carry out the process of obtaining licenses or legality of their business entities. Seeing the many business activities that have developed, Indonesia has made a classification or grouping of economic activities into the Standard Business Field Classification (KBLI). On September 29, 2020, the Central Bureau of Statistics (BPS) socialized the launch of KBLI 2020 in an effort to improve KBLI 2017. The socialization and launch of KBLI 2020 is expected to create a common view on the importance of synchronizing business references to improve business quality. Every business actor conducting activities in the trade sector must have a Business License. The intended Business License must be mapped based on the KBLI code. KBLI consists of 4 to 5 code numbers that determine the business field of a company. For example, if Sobat KH wants to establish a company in the field of Food & Beverages, the KBLI code that will be included in the company’s deed of establishment is 56303, which is a beverage house or cafe. The KBLI code is then recorded by the Online Single Submission (OSS) system. If the inclusion of the KBLI code is not done correctly, the business actor may not get a Business Identification Number (NIB) and Business License. If they do, the NIB obtained may not accurately describe the business entity. KBLI can be utilized for economic purposes. It provides a classification of economic activities that can be used to study the behavior of economic units. KBLI also provides information needed in monitoring and evaluating the achievements of 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 the game industry in Indonesia contributes to GDP. In addition to being needed in the economic field, KBLI also functions as a reference for each business entity in making company documents, as a determination of the qualifications of the type of business activity in the application letter for a Company Registration Certificate (TDP), investment licensing, and Trade Business License (SIUP). Because KBLI is closely related to legality, it will be dangerous if the business entity has been running but the chosen KBLI is not appropriate. If this happens, the company can be sanctioned because it is considered not carrying out its business activities. According to Article 48 Paragraph 1 of the Regulation of the Minister of Trade No. 8 of 2020 concerning Electronic Integrated Business Licensing Services in the Trade Sector, governors, regents or mayors supervise the fulfillment of business licensing commitments, fulfillment of business actor obligations, and supervision of businesses that have obtained business licenses in accordance with statutory regulations. If deviations are found, actions will be imposed on business actors in the form of warnings, temporary suspension of business activities through the suspension of Business Licenses, imposition of administrative fines, and revocation of business licenses. Therefore, business actors must be careful and thorough in selecting the KBLI code.

It is important for businesses to find out in detail what needs will be required. The purpose and objectives of the business entity should also be reflected in the chosen KBLI code. Simply put, KBLI will be very influential in the establishment of business entities and the issuance of business licenses. Read also:

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Want to consult about choosing the KBLI code for your business? Contact Contract Law for more information. Visit and contact:

Mariska

Resident legal marketer and blog writer, passionate about helping SME to grow and contribute to the greater economy.

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