Foreign Investor FeasibilityKBLI 10422
§ 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
Open under BUPM (subject to sector rules)
KBLI 10422 is not on Indonesia's closed, conditional, SME-reserved, or partnership-required schedules under BUPM (Pres. Reg. 10/2021). A foreign investor can incorporate a PT PMA under this code, but sector regulators (PSE/Kominfo, BPOM, OJK, Kemenkes, Permendag, ESDM) almost always add licensing and capital requirements on top — the practical answer depends on your specific business model.
This KBLI is open under BUPM (Pres. Reg. 10/2021) — it's not on any restricted, closed, SME-reserved, or partnership-required schedule. That's the BUPM verdict only, not a complete sector-readiness check: sector regulators almost always add requirements on top (PSE/Kominfo for digital platforms, BPOM for food and cosmetics, OJK for financial, Kemenkes for healthcare, Permendag for retail, ESDM for energy). BKPM's default capital floor is IDR 2.5 billion paid-up with IDR 10 billion+ total investment commitment per KBLI, but sector regulators frequently set higher minimums for specific activities. The practical answer depends on your business model — confirm with our team before committing capital.
Tax incentives
Foreign-investor tax benefits available for this KBLI under PMK 130/2020 (Tax Holiday) and PP 78/2019 (Tax Allowance). Both require approval — see the linked guide for the application path.
Eligible for Tax Holiday
100% corporate income tax exemption for 5-20 years, plus 2 additional years at 50%. Tier scales with capex (IDR 100b minimum). Pioneer industry: Agro-industry — vegetable oil downstream.
§ 02
Halal certification
Indonesia requires BPJPH Halal certification for an expanding range of consumer-product categories. This KBLI's activities fall in scope — see what's required and when.
BPJPH certification required
Halal certification is mandatory for food & beverage products.
Enforceable since October 2024
Under UU 33/2014, every food and beverage product entering the Indonesian market must carry a BPJPH Halal certificate. The scope covers raw materials, processing aids, packaging in contact with the product, and the full supply chain. We coordinate the LPPOM-MUI audit and BPJPH filing — typically a 4-6 month process for first-time certification.
- 01
Audit & gap analysis
Review your formulation, supply chain, and facility against BPJPH criteria. Identify ingredients or processes that need swapping.
- 02
LPH inspection
An accredited Halal Inspection Body (LPPOM-MUI is the largest) audits the facility and reviews documentation.
- 03
BPJPH issuance
The Halal certificate is issued under the BPJPH register and the Halal label can be applied to packaging.
Halal certification is a core Emerhub service. We've handled BPJPH projects for foreign-brand food, cosmetics, and pharma operators across Indonesia — including supply-chain re-sourcing where needed. Bundle it with your PT PMA setup and we coordinate both timelines.
Talk to a Halal advisor§ 03
How we handle your KBLI 10422 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.
§ 06
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).
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
7Days
Statutory turnaround
Application requirements
4Documents and capabilities you must demonstrate at registration
- 01Have a document outlining the plan for the type, specifications, quantity, and source of raw materials, as well as the source and amount/volume of energy and water needed to carry out industrial business activities for 1 (one) production cycle or for the next 6 (six) months.
- 02Possess documents in the form of: a. Machine specifications and/or equipment list b. Photos of machines/equipment c. Sales/rental agreement that proves: 1) Control (ownership/rental) of machines for producing food and beverage industry products and quality testing equipment 2) Compliance of installed production capacity with business data
- 03Have flowchart documents for: a. Procurement, receipt, and storage of raw materials, b. Production process, c. Quality control process, d. Packaging, storage, transportation, and distribution of production results.
- 04Have a facility layout planning document that aligns with the production process flowchart, demonstrating that the factory/business location is far from pollution sources to protect the processed food produced.
Ongoing obligations
4Compliance and reporting duties throughout operation
- 01Have proof of submission of mandatory validated Industrial Data every 6 (six) months in accordance with the laws and regulations in the industrial sector.
- 02Ensure the safety and security of equipment, processes, production results, storage, and transportation, in accordance with applicable laws and regulations.
- 03Have SOP documents and implement the provisions for product packaging, labeling, product information, and product storage based on the principles of Good Manufacturing Practices for Processed Food.
- 04Have SOP documents and implement employee hygiene and sanitation provisions based on the principles of Good Manufacturing Practices for Processed Food.
Issuing authority
The authority that issues the license depends on your situation.
| Authority | Applies when |
|---|---|
| Minister/Head of Agency | The industrial location is situated within a cross-border area between provinces. |
| Minister/Head of Agency | Foreign Investment |
| Governor | The industrial location is in the relevant province. |
§ 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 11 candidate permits across 1 regulator; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Pharmaceuticals
11 permitsBPOM (National Agency of Drug & Food Control). Applies to drugs, processed food, traditional medicine, cosmetics, and health supplements — produced, imported, repackaged, or distributed for human consumption. BPOM is the gating regulator; product registration is required before any commercial sale.
- Approval for the Implementation of Processed Food Clinical TrialsPersetujuan Pelaksanaan Uji Klinik Pangan Olahan2 requirements1 obligationFood and Drug Supervisory Agency
- Certificate of Approval for Major Variations in Processed Food Mandatory SNISertifikat Persetujuan Variasi Mayor Pangan Olahan Wajib SNI2 requirements1 obligationFood and Drug Supervisory Agency
- Certificate of Compliance for Processed Food Production Commitment for Home Industry (SPP-IRT)Sertifikat Pemenuhan Komitmen Produksi Pangan Olahan Industri Rumah Tangga (SPP-IRT)3 requirements1 obligationFood and Drug Supervisory Agency
- Certificate of Compliance with Major Processed Food Commitment VariationsSertifikat Pemenuhan Komitmen Variasi Mayor Pangan Olahan2 requirements3 obligationsFood and Drug Supervisory Agency
Speak to Emerhub
Get your KBLI 10422 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.