KBLI 2020 · 5-digit class

02121Utilization of Natural Forest Wood

Utilization of Timber from Natural Forests

Last updated · Sourced from OSS Indonesia

This group includes the utilization of natural forests through harvesting or logging activities with diameter limits, enrichment, and maintenance. Harvesting/logging/enrichment/planting activities are carried out on tree species classified into the meranti group, mixed forest group, ornamental wood group, and other wood species groups applicable throughout Indonesia, excluding protected wood species.

For foreign investors

Key facts for KBLI 02121

The essentials a foreign investor needs to know before reading the rest of this page.

  • 100% foreign ownership permitted via PT PMA. KBLI 02121 is not on Indonesia's closed, conditional, SME-reserved or partnership-required schedules under Pres. Reg. 10/2021.

  • Default minimum paid-up capital: IDR 2.5 billion (~USD 160K) under BKPM Reg. 5/2025 (effective Oct 2025) — applies unless a sector regulator sets a higher figure for this activity. The often-cited IDR 10 billion is the total investment commitment per KBLI realised over time via quarterly LKPM reports, not required upfront.

  • High-risk activity — requires NIB + full Operating License (Izin) to operate commercially. NIB alone enables only the preparation stage; an Operating License must be obtained before invoicing or production starts.

  • Statutory licensing turnaround: 10 days once we submit the application — on top of the 2–3 weeks for PT PMA incorporation. We coordinate the full sequence end-to-end.

  • Issuing authority for PMA: Minister/Head of Agency — this KBLI is routed centrally rather than to provincial / regency level.

  • Ongoing reporting: quarterly LKPM (Investment Activity Report) to BKPM plus 18 sector-specific obligations. We file these on your behalf as part of monthly compliance — you stay out of the OSS portal entirely.

At a glance
For Large-scale (PMA) operation
Foreign investment
100% foreign ownership allowed
No restrictions under Indonesia's BUPM regulation
Risk level
High
NIB + full Operating License
Primary license
NIB + full Operating License (Izin)
NIB enables preparation only — additional permit needed to operate
Setup timeline
10 Days
Statutory turnaround at OSS
Issuing authority
Minister / Agency Head
Default issuing authority
Min. paid-up capital
IDR 2.5 B
BKPM default paid-up — sector rules may set a higher figure
Figures shown are for the Large business scale (Usaha Besar) — the scale at which foreign-owned PT PMA must register. Setup time and license type are what Emerhub will handle on your behalf; the regulatory matrix below is for transparency.
§ 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 · open

Fully open to foreign investment

KBLI 02121 is not on Indonesia's closed, conditional, SME-reserved or partnership-required schedules. A foreign investor may incorporate a PT PMA with up to 100% foreign ownership and operate in this activity directly.

This KBLI is not listed in any restricted, closed, SME-reserved or partnership-required schedule under Pres. Reg. 10/2021 (as amended). A 100% foreign-owned PT PMA may operate in this activity, subject to the licensing requirements shown below. BKPM's default minimum capital is IDR 2.5 billion paid-up with IDR 10 billion+ total investment commitment per KBLI realised over time, but sector regulators (OJK, ESDM, BPOM, Kominfo, etc.) can set higher minimums for specific activities — we confirm the actual figure before incorporation.
§ 02

How we handle your KBLI 02121 setup

Emerhub is a corporate-services provider in Indonesia. We do the legal and regulatory legwork for foreign investors so you can focus on the business itself. Here's what the engagement looks like.

  1. 1

    Confirm the optimal structure for your business

    2–3 business days

    We confirm KBLI 02121 is the right primary code for your business, advise on secondary codes you may also need, and finalize the holding structure with you before any filing.

    What we need from you
    • Founders' passport copies and proof of residence
    • Intended share split and board composition
  2. 2

    Incorporate your PT PMA

    7–10 business days

    We draft the Articles of Association before a notary, register the entity with the Ministry of Law & Human Rights (Kemenkumham), and obtain the company's tax ID (NPWP). Under BKPM Reg. 5/2025, paid-up capital is IDR 2.5 billion (~USD 160K) — the cash actually deposited at incorporation. The IDR 10 billion+ figure many sources still cite is the total investment commitment per KBLI, realised over time via your LKPM reports.

    What we need from you
    • Powers of attorney (we prepare; you sign and notarize)
    • Director / commissioner appointment letters
    • Initial capital deposit confirmation
  3. 3

    We obtain your NIB

    1–2 business days

    We file the OSS application with KBLI 02121 as your primary business activity, complete the risk-based assessment, and collect the NIB (Business Identification Number) for you — typically within hours of submission. You don't need to touch the OSS portal.

    What we need from you
    • Office address (virtual office acceptable for many KBLIs; we can arrange one)
  4. 4

    Secure your full Operating License (Izin)

    10+ business days

    NIB is issued for the preparation stage. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after a substantive review of the operator's capability, facility, and compliance. Operating with NIB alone exposes the entity to penalties, blacklisting, and contract invalidation. We prepare the application bundle, liaise with the competent ministry, and chase issuance through to the certificate. Statutory turnaround: 10 business days — real-world timing typically runs longer when site inspections or additional clarifications are requested.

    What we need from you
    • Technical documentation specific to your operation
    • Appointment of a Penanggung Jawab Teknis (PJT — technical responsible person)
  5. 5

    Hand-off to ongoing compliance

    Ongoing

    Post-launch we run your monthly tax filings, quarterly LKPM (Investment Activity Reports), annual general meeting (RUPS), and any sector-specific reporting. You get a single point of contact and a monthly compliance digest — no Indonesian-language paperwork on your desk.

Get an exact quote and timeline for KBLI 02121, scoped to your specific business plan.
Request a quote
§ 03

What is KBLI 02121?

A plain-English explanation of this classification and the businesses it covers.

KBLI 02121 (Utilization of Timber from Natural Forests) is the 5-digit Indonesian Standard Industrial Classification code for utilization of natural forest wood. It sits within Agriculture, Forestry, and Fisheries under the subgroup Utilization of Natural Forests. (major group 02) in the official KBLI 2020 taxonomy maintained by Statistics Indonesia (BPS).

This group includes the utilization of natural forests through harvesting or logging activities with diameter limits, enrichment, and maintenance. Harvesting/logging/enrichment/planting activities are carried out on tree species classified into the meranti group, mixed forest group, ornamental wood group, and other wood species groups applicable throughout Indonesia, excluding protected wood species.

Who needs KBLI 02121?

Any Indonesian or foreign-owned entity that intends to operate in utilization of natural forest wood as a primary or secondary business activity must select this code on its NIB (Business Identification Number). The selected code determines the licensing instruments required, the issuing authority, and the ongoing compliance obligations.

Why does the code matter?

Indonesia's OSS Risk-Based Approach uses the KBLI code to determine three things: (1) whether foreign investment is permitted and at what cap, (2) the risk-based licensing instruments required, and (3) the authority that issues each instrument. Choosing the wrong code can delay or invalidate your license.

§ 04

Forestry-specific guidance

Sector context that applies to KBLI 02121 beyond the generic OSS process. Verify with the relevant ministry before committing capital.

Lead regulator
Ministry of Environment & Forestry (KLHK)
  • ·Timber harvesting requires an IUPHHK concession — competitive process with limited annual allocations.
  • ·Sustainable forest management certification (PHPL/SVLK) is mandatory for export markets.
  • ·Foreign equity in primary forestry is generally restricted; downstream processing (furniture, paper) more open.
§ 05

Under the upcoming KBLI 2025

Indonesia's BPS published the new KBLI 2025 taxonomy in early 2025. OSS, BKPM and the operating ministries have not yet adopted it — KBLI 2020 remains the active standard for business registration. This is what's coming for this specific code.

Reorganised in KBLI 2025

KBLI 02121 does not carry the same number forward into KBLI 2025 — the activity has been reclassified, but the precise mapping isn't recorded in our database yet.

  • ·For current operations, KBLI 02121 remains valid — OSS still uses KBLI 2020 for all business registrations.
  • ·The KBLI 2025 successor codes are listed in the official BPS transition document below; check for the activity-specific mapping when planning future structures.
  • ·Once OSS announces the KBLI 2025 cutover, existing entities will need to update their primary KBLI to the relevant successor — typically straightforward.

When OSS adopts KBLI 2025, we'll migrate your existing entity to the appropriate successor code as part of ongoing compliance — no action needed on your end now.

Talk to a specialist
§ 02

Risk level by business scale

Indonesia's OSS Risk-Based Approach assigns a separate risk level for each of the four business scales. The licensing instruments required (NIB, Standard Certificate, Operating License) are determined by the risk level. Foreign-owned entities (PT PMA) must register at the Large scale, so the rightmost column applies to most foreign investors.

01

Micro

Usaha Mikro
≤ IDR 2 B turnover
High risk
NIB + full Operating License (Izin) before invoicing.
02

Small

Usaha Kecil
IDR 2 – 15 B
High risk
NIB + full Operating License (Izin) before invoicing.
03

Medium

Usaha Menengah
IDR 15 – 50 B
High risk
NIB + full Operating License (Izin) before invoicing.
04

Large

PMA scale
Usaha Besar
IDR > 50 B
High risk
NIB + full Operating License (Izin) before invoicing.
What does each risk level require to operate? ›
Low. NIB alone is sufficient for both preparation and commercial operation. Issued instantly via OSS.
Medium-Low. NIB enables preparation only. Commercial operation requires a self-declared Sertifikat Standar (Standard Certificate). Operating with NIB alone is not legally compliant.
Medium-High. NIB enables preparation only. Commercial operation requires a Sertifikat Standar verified by the competent ministry — typically with a site or document inspection.
High. NIB enables preparation only. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after substantive review.
Beyond OSS, sector-specific permits commonly apply on top — e.g. SBU for construction, BPOM for food/cosmetics/medicines, OJK for financial services, IUP for mining, PSE for digital services. See the industry-specific guidance below for what applies to this KBLI.
§ 05

Licensing requirements in detail

Specific permits, application requirements and ongoing obligations vary by business scale and the sub-activity within this KBLI. We file these on your behalf — this section is for transparency on what we'll be handling. Switch between scales below; by default we show Large (the PMA scale).

Sub-activity scope

Utilization of timber forest products in production forests

What's required to operate
NIB
Preparation only — additional permit needed below
Operating License (Izin)
Important: NIB is issued for the preparation stage. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after a substantive review of the operator's capability, facility, and compliance. Operating with NIB alone exposes the entity to penalties, blacklisting, and contract invalidation.
Processing time
10Days
Statutory turnaround

Application requirements

3

Documents and capabilities you must demonstrate at registration

  • 01Persetujuan Komitmen PBPH
  • 02Berita Acara Koordinat Geografis
  • 03Bukti pelunasan iuran PBPH

Ongoing obligations

19

Compliance and reporting duties throughout operation

  • 01Prepare a business work plan document for forest utilization for 10 (ten) years, taking into account the long-term forest management plan of the KPH, no later than 1 year after the business license is granted.
  • 02Prepare the Annual Work Plan (RKT) based on the Annual Work Plan of the Business (RKUPH) since the Business Plan (RKU) has been approved.
  • 03Melaksanakan kegiatan nyata di lapangan paling lambat 1 tahun setelah perizinan berusaha diterbitkan
  • 04Melaksanakan penataan batas areal kerja 2 (dua) tahun sejak diberikan
  • 05Melaksanakan perlindungan hutan di areal kerjanya
  • 06Take measures to prevent forest fires in the work area.
  • 07Bertanggungjawab atas terjadinya kebakaran hutan di areal kerjanya
  • 08Conduct environmental recovery for environmental damage in its work area.
  • 09Implement at least 50% of the investment target that has been set.
  • 10Realize production of at least 50% of the planned target.
  • 11Menatausahakan keuangan kegiatan usahanya
  • 12Employing professional personnel in the forestry sector and other personnel who meet the requirements according to needs.
  • 13Membayar PNBP sesuai peraturan perundang undangan
  • 14Implement the utilization of forest products using silviculture systems in accordance with local conditions.
  • 15Melaksanakan pemanenan hasil hutan kayu dengan menerapkan teknik pembalakan berdampak rendah/ Reduce Impact Logging (RIL)
  • 16Conducting forest product accounting
  • 17Conduct measurements or tests of forest products in accordance with regulations.
  • 18Submit performance reports periodically to the Minister of Environment and Forestry.
  • 19Fulfill other obligations in accordance with the provisions.

Issuing authority

The authority that issues the license depends on your situation.

AuthorityApplies when
Minister/Head of AgencyAll
Minister/Head of AgencyForeign Investment
Emerhub advisor
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Get your KBLI 02121 setup handled end-to-end.

Emerhub is a corporate-services provider in Indonesia. We handle PT PMA incorporation, licensing, tax registration and monthly compliance — so you focus on operating the business.
Get a quote for KBLI 02121