Foreign Investor FeasibilityKBLI 01122
§ 01
Foreign investment rules
Indonesia's BUPM (Investment Business Fields) regulation places this code into one of five tracks. The track determines whether a foreign investor (PMA) can operate in this activity at all, and under what conditions.
Status · sme reserved
Reserved for cooperatives & micro/small enterprises
KBLI 01122 is allocated to cooperatives and Indonesian micro, small and medium enterprises (UMKM) under the BUPM allocation list. Foreign investment via PT PMA is not permitted for the listed sub-activities below.
Listed restrictions
Reserved for SMEs / cooperatives
2- Food crop agriculture with an area of less than 25 Ha: Hybrid riceFood Crop Agriculture with an Area of Less than 25 HaSector: Agriculture
- Food crop agriculture with an area of less than 25 Ha: Hybrid riceAllocated for Cooperatives and UMKM.Sector: Agriculture
Investment momentum
Agriculture (incl. plantation processing) sector — Q3 2025
BKPM-reported foreign investment context for the broader sector this KBLI sits in. Data is aggregated at the major-sector level — BKPM does not publish per-5-digit-KBLI breakdowns publicly.
PMA realized
IDR 35.9t≈ USD 2.2b
+12.3% YoY
Top investing countries
Singapore22%
Malaysia19%
Japan11%
Plantation hilirisation (palm-oil downstream, cocoa, coffee processing) is now a Tax Holiday pioneer industry. Singapore-headquartered agribusiness continues to lead inbound FDI, with Malaysian planters expanding processing footprint.
§ 02
Agriculture-specific guidance
Sector context that applies to KBLI 01122 beyond the generic OSS process. Verify with the relevant ministry before committing capital.
Lead regulator
Ministry of Agriculture (Kementan)
- ·Operations on land >25 Ha typically require an HGU (Right to Cultivate) land title — secure this before operating.
- ·Good Agricultural Practices (GAP) compliance is mandatory and audited.
- ·Many farming activities under 25 Ha are reserved for cooperatives and Indonesian SMEs (UMKM); foreign investors should choose larger-scale operations or processing-stage codes.
- ·Periodic LKPM (investment realization report) is filed quarterly via OSS.
§ 03
Regulations governing KBLI 01122
Current status, what each regulation actually requires for this activity, and how it ties to the PB UMKU sector permits below. Click through for the plain-English summary.
- Indonesia, Kementerian Keuangan
- Indonesia, Kementerian Keuangan
- Indonesia, Kementerian Perdagangan
Full PB UMKU permit list tied below.
§ 04
Activities included under KBLI 01122
Sub-activities recorded under this KBLI in the OSS regulatory database. The classification covers any business operating in one or more of these areas.
Sub-activities under KBLI 01122
From the official OSS scope definition for this KBLI class. Each item is a distinct sub-activity that falls under this code.
- 01This group includes hybrid agricultural businesses (not hybrids) starting from land preparation, seeding, planting, maintenance, and also harvesting and post-harvest if they are part of a single activity until the production of Dry Harvested Grain (GKP) commodities.
§ 02
What this means for foreign investors
An honest read of the situation, plus the structures that work in practice. We've handled all of these — book a call to walk through your specific plan.
This activity is allocated to Indonesian SMEs and cooperatives.
PT PMA is not permitted for this KBLI. The activity is reserved for cooperatives and Indonesian micro/small/medium enterprises (UMKM). The pathway for foreign investors is to operate a different value-chain step (e.g. processing or distribution rather than the reserved primary activity), or to support local SMEs as an off-taker / brand owner / financier.
Pathways that work
Move to a different value-chain step
The cleanest path: operate a related but open KBLI. For example, foreign investors blocked from primary commodity production frequently succeed with the processing, distribution, branding, or export-trade codes upstream or downstream of the restricted activity.
Special Economic Zone (KEK) or Free Trade Zone (Batam)
Several restricted codes have higher or full PMA caps inside designated KEK zones (Sanur Health, Lido, Mandalika) or the Batam Free Trade Zone — manufacturing, logistics, and IT services especially. The IUK regime under BP Batam relaxes ownership rules selectively in exchange for export orientation. We assess whether your operation can benefit. See the for the requirements.
SME partnership / off-take model
You can't hold the SME licence yourself, but you can build a contractual ecosystem with cooperatives or UMKM partners — supplying them with capital, IP, brand, distribution, or technology. We structure these arrangements so they stay defensible and commercially aligned.
PMA-viable codes in adjacent industries
These KBLIs solve a related business problem and are open to foreign ownership. None are a perfect substitute for the activity above — but they often unlock 80% of the commercial outcome. Talk to us about which fits your plan.
Restricted KBLIs need a tailored structure. Book a call and we'll map the right entity, partner, and licensing path for your specific business.
Talk to a corporate-services specialist§ 08
Reference data: how this KBLI is regulated
The data below is the official OSS regulatory profile for this code. It applies to qualifying Indonesian operators (or to your operating partner). Foreign investors won't file these directly, but it's useful context when structuring a partnership or commercial arrangement.
Foreign investors:the licensing matrix below is for context only — direct PMA registration isn't possible for this code. See pathways above for what actually works.
Sub-activity scopes · 2
Sub-activity scope
This group includes hybrid agricultural businesses (not hybrids) starting from land preparation, seeding, planting, maintenance, and also harvesting and post-harvest if they are part of a single activity until the production of Dry Harvested Grain (GKP) commodities.
What's required to operate
NIB
Preparation only — additional permit needed below
Standard Certificate (Verified)
Important: NIB is issued for the preparation stage. To begin commercial operations, the operator must obtain a Sertifikat Standar that has been verified by the competent ministry. The verification step typically requires a site or document inspection. Operating with NIB alone is not legally compliant.
Processing time
7Days
Statutory turnaround
Application requirements
2Documents and capabilities you must demonstrate at registration
- 01Proof of land ownership for business in accordance with applicable laws and regulations.
- 02Business cultivation work plan document
Ongoing obligations
4Compliance and reporting duties throughout operation
- 01Implementing good agricultural practices for food crop cultivation.
- 02Submit a business development report that includes: a. raw material usage report, b. production process report, and c. marketing report, to be submitted at least once a year to the Minister of Agriculture.
- 03Use domestic production facilities, unless they are not available domestically.
- 04The production process must use Indonesian citizens as the workforce.
Issuing authority
The authority that issues the license depends on your situation.
| Authority | Applies when |
|---|---|
| Regent/Mayor | The business location is in the Regency/City. |
| Minister/Head of Agency | The business location is across provincial borders. |
| Minister/Head of Agency | Foreign Investment |
| Governor | The business location spans multiple districts/cities. |
§ 05
Auxiliary permits (PB UMKU)
PB UMKU permits sit on top of the main NIB and Sertifikat Standar — each is issued by a different ministry, and only when a specific operational activity is performed. This KBLI carries 1 candidate permit across 1 regulator; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Veterinary & Animal Medicine
1 permitMinistry of Agriculture. Applies if you produce, import, distribute, or sell animal medicines, vaccines, or feed; if you breed livestock; or if you operate a veterinary practice. A "veterinary control number" (NKV) is the entry-point permit for animal-product processors.
Speak to Emerhub
KBLI 01122 needs a tailored structure. Let's design it.
Restricted KBLIs need a structure designed around the restriction — partnership, alternative code, KEK, or commercial arrangement. We've handled all of these. One conversation tells you what works for your plan.