Wood Sawmill Industry
Last updated · Sourced from OSS Indonesia
This group includes businesses involved in sawing, slicing, peeling, and cutting logs into blocks, beams, battens, boards, and similar products. It also includes the wood industry for railway sleepers and raw materials for wooden flooring production.
Sector oversight by Ministry of Industry; NIB is the only license needed and Emerhub files it for you.
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Industry data reporting via SIINas every 6 months.
BPOM registration required for any food, drug, cosmetic, or medical device produced.
Halal certification mandatory for most consumable products.
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.
KBLI 16101 is open as a class — a 100% foreign-owned PT PMA can be incorporated under this code — but Pres. Reg. 10/2021 carves out 2 specific sub-activities that are off-limits or restricted for foreign capital. The rest of the activity remains open to PMA. The carved-out items are listed below; any of them needs to be either avoided, served via an Indonesian operator, or structured around case-by-case.
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.
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.
We confirm KBLI 16101 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.
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.
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).
Documents and capabilities you must demonstrate at registration
No specific application requirements at this scale.
Compliance and reporting duties throughout operation
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. |
We file the OSS application with KBLI 16101 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.
NIB is issued for the preparation stage. To begin commercial operations, the operator must self-declare compliance with applicable standards via OSS, which generates the Sertifikat Standar. Operating commercially with NIB alone is not legally compliant at this risk level. We prepare the application bundle, liaise with the competent ministry, and chase issuance through to the certificate. Statutory turnaround: set by ministry — real-world timing typically runs longer when site inspections or additional clarifications are requested.
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.
Class-level prerequisites that apply to every operator under this KBLI, independent of business scale. These commonly include minimum capital rules for PMA entities and spatial-planning (KKPR) conformance.
A plain-English explanation of this classification and the businesses it covers.
KBLI 16101 (Wood Sawmill Industry) is the 5-digit Indonesian Standard Industrial Classification code for wood sawing industry. It sits within Manufacturing Industry under the subgroup The Wood, Rattan, Bamboo, and Similar Material Sawmilling and Preservation Industry (major group 16) in the official KBLI 2020 taxonomy maintained by Statistics Indonesia (BPS).
Any Indonesian or foreign-owned entity that intends to operate in wood sawing industry 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.
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.
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.
KBLI 16101 retains the same code number and scope in the new taxonomy. The activity description, hierarchy, and intended use of the code are preserved.
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 specialistIndonesia'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.
KBLI 16101 (Wood Sawmill Industry) is the 5-digit Indonesian Standard Industrial Classification code for wood sawing industry. It sits within the Manufacturing Industry category in the official KBLI 2020 taxonomy maintained by Badan Pusat Statistik (BPS).
Yes, KBLI 16101 is open to PMA at the class level, but Pres. Reg. 10/2021 carves out specific sub-activities that are restricted. A foreign investor can operate the unrestricted slices subject to the same BKPM Reg. 5/2025 capital rules.
KBLI 16101's risk levels per business scale: Micro Low, Small Low, Medium Low, Large Medium-Low. Foreign-owned entities (PT PMA) must register at the Large scale.
NIB + self-declared Standard Certificate (Sertifikat Standar). KBLI 16101 is Medium-Low risk at Large scale, so the investor declares compliance with the applicable technical standard at NIB issuance. No government pre-audit, but the declaration is binding and can trigger a post-audit. Plus one basic requirement (KKPR) at the class level.
BKPM Reg. 5/2025 default applies: IDR 2.5 billion paid-up capital at incorporation + IDR 10 billion+ total investment commitment per KBLI registered, realized over time and reported quarterly via LKPM.
PT PMA setup typically takes 4-8 weeks end-to-end: AHU registration, NIB via OSS, bank account opening. KBLI-specific licensing depends on the permit instrument required.
Not on the Tax Holiday or Tax Allowance priority lists. KBLI 16101 businesses pay the standard 22% PPh Badan; Super Tax Deduction (300% R&D / 200% vocational training) may still apply for qualifying expenses.
Authority depends on the investor profile. For PMA: Minister/Head of Agency. For domestic SME scale: typically Governor (for Provincial scope) or Regent/Mayor (Regency/City scope). Specific mapping is in §1 of this page.
Beyond the NIB, no specific auxiliary permits (PB UMKU) are recorded for KBLI 16101. Sector-specific obligations may still apply — verify with the relevant ministry.
KBLIs in the same subgroup 1610: 16102 (Wood Preservation Industry); 16103 (Rattan, Bamboo, and Similar Materials Preservation Industry); 16104 (Rattan Processing Industry); 16105 (Wood Particle and Similar Industries). These are closely related activities — see the related-codes section below for full list.