Foreign Investor FeasibilityKBLI 10722
§ 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 10722 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
1- Brown sugar industryAllocated for Cooperatives and UMKM.Sector: Industry
§ 02
Food manufacturing-specific guidance
Sector context that applies to KBLI 10722 beyond the generic OSS process. Verify with the relevant ministry before committing capital.
Lead regulator
Ministry of Industry (Kemenperin) / BPOM
- ·BPOM Distribution Permit (NIE) required for any consumer-facing food product.
- ·Halal certification mandatory since October 2024 for most food products (BPJPH).
- ·GMP / HACCP audits required for production facilities.
- ·Some sub-sectors (sugar, salt) have additional licensing under Ministry of Trade.
§ 03
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§ 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.
§ 07
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.
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 12 candidate permits across 2 regulators; 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
Energy & Mineral Resources
1 permitMinistry of Energy & Mineral Resources (ESDM). Applies to mining, oil & gas extraction, power generation, fuel distribution, and gas pipeline infrastructure. Most permits attach to a specific site or lifecycle phase (exploration, production, decommissioning) rather than the company as a whole.
Speak to Emerhub
KBLI 10722 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.