Foreign Investor FeasibilityKBLI 16294
§ 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 16294 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- Wood, rattan, and bamboo kitchenware industryAllocated for Cooperatives and UMKM.Sector: Industry
§ 02
Manufacturing-specific guidance
Sector context that applies to KBLI 16294 beyond the generic OSS process. Verify with the relevant ministry before committing capital.
Lead regulator
Ministry of Industry (Kemenperin)
- ·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.
§ 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 the same area
These siblings are usable by a foreign-owned PT PMA — they have a Large-scale licensing matrix and aren't on a restricted list. Each has its own context badge so you can pick by trade-off.
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§ 06
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
NIB is sufficient for both preparation and commercial operation. No additional licensing instrument is issued by OSS at this risk level.
Application requirements
0Documents and capabilities you must demonstrate at registration
No specific application requirements at this scale.
Ongoing obligations
6Compliance 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;
- 03Having legal documents for raw materials, consisting of: a) Certificate of Legality of Timber Products (SKSHH); b) Timber Transport Letter (SAKR); or c) Import Approval for imported raw materials, in accordance with the provisions of each type of forestry management and logging business license;
- 04Having documented Standard Operating Procedures (SOP) that at a minimum include procurement, receipt and storage of raw materials, production processes, packaging, storage of finished goods, distribution, and customer service;
- 05Obligation Have: (a) A guide document for the use of produced goods (including maintenance, troubleshooting handling); or (b) A warranty service for malfunctions of produced goods, which proves a minimum service commitment to customers;
- 06Possess a Quality Management System Certificate (ISO 9001).
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. |
Speak to Emerhub
KBLI 16294 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.