• Adjustment of Indonesia Standard Industrial Classification
Newsletter:

Adjustment of Indonesia Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia, KBLI)

04 December 2018

On 11 October 2018, Ministry of Law and Human Rights and Ministry of Coordination for Economic Affair issued a Joint Announcement regarding the Adjustment of Indonesia Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia, KBLI). KBLI is a reference of classification used to classify Indonesia's business activity or business fields that classified based on the types of activities that produce products in the form of goods and services issued by the Central Bureau of Statistic (Badan Pusat Statistika, BPS).

The joint announcement is issued regarding the OSS System, regulated under Government Regulation Number 24 of 2018, the government's effort to simplify business licensing and to create a fast and cheap licensing service model, and to provide certainty.

Currently, there are differences in the Limited Liability Company data in the Administration System of Legal Entity (Sistem Administrasi Badan Hukum, SABH) with the OSS System. The OSS System uses KBLI 2017 while SABH uses the previous KBLI, which results in data mismatch between the Ministry of Law and Human Rights and the Ministry of Coordination for Economic Affairs. This matter has caused companies not being able to process the Single Business Number (NIB) on the OSS System.

In regards to solve this matter, the Indonesian Ministry of Law and Human Rights cq. Directorate General of General Legal Administration and Ministry of Coordination for Economic Affairs cq. the OSS Institution will process and issue NIB for the limited liability company whose purpose and objective of the business activity has not yet adjusted to the KBLI 2017, with the provision of the limited liability company must adjust its objective and purpose of the business activity in accordance with KBLI 2017 through the SABH Directorate General of General Law Administration within 1 (one) year. This is done through the changes of articles of association of the company as referred to in the provisions of Article 21 paragraph (2) of Law Number 40 of 2007 concerning Limited Liability Company, where changes in purposes and objectives constitute changes in the articles of association which must be approved by the Minister of Law and Human Rights.

If the limited liability company does not adjust its articles of association within the given time, the NIB of the limited liability company will be considered invalid.

The flow of the limited liability company registration is as follows:

 

For more information how BDO in Indonesia can help you in planning and navigate this major change, please contact our technical team at: corsec.helpdesk@bdo.co.id