Foreign Investor FeasibilityKBLI 20111
§ 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 20111 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: Petrochemicals — downstream.
§ 02
Regulations governing KBLI 20111
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.
- Indonesia, Pemerintah Pusat
Full PB UMKU permit list tied below.
§ 03
How we handle your KBLI 20111 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
Confirm the optimal structure for your business
2–3 business daysWe confirm KBLI 20111 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
Incorporate your PT PMA
7–10 business daysWe 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.
Get an exact quote and timeline for KBLI 20111, scoped to your specific business plan.
Request a quote§ 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).
Sub-activity scope
All Information: The scope of the Basic Inorganic Chemical Industry for Chlorine and Alkali that uses the mercury process is prohibited for business actors in the context of new investment, business expansion, and development.
What's required to operate
NIB
Preparation only — additional permit needed below
Standard Certificate (Verified)
Important: NIB is issued for the preparation stage. To begin commercial operations, the operator must obtain a Sertifikat Standar that has been verified by the competent ministry. The verification step typically requires a site or document inspection. Operating with NIB alone is not legally compliant.
Processing time
7Days
Statutory turnaround
Application requirements
7Documents 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 a duration of 6 (six) months ahead.
- 02Have documents in the form of: a. Machine specifications and/or equipment list b. Photos of machines/equipment c. Sales/rental agreement proving control (ownership/rental) of machines to produce chemical industry products and quality testing equipment
- 03Have a document for the prevention and response to chemical emergency situations consisting of: a. Risk assessment of the production process flow and management of the list of chemicals for the prevention and response to chemical emergencies in chemical industry business activities, prepared independently (self-assessment). The procedures for the prevention and response to chemical emergencies include: 1) Emergency response personnel, with a minimum of: a. 1 Coordinator b. 1 Commander c. 1 Officer 2) Emergency response communication system 3) Technical guidelines for emergency response operations 4) Emergency response equipment and supplies 5) Emergency response training planning
- 04Have a flowchart document 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
- 05Possess documentation in the form of photos proving the availability of occupational accident handling facilities and rest areas for workers.
- 06Have a facility layout planning document for the plant layout facilities in accordance with the process flow chart and demonstrate the availability of: a. Temporary Storage Place (TPS) for hazardous and toxic materials (B3) if using chemicals classified as B3 b. Wastewater Treatment Facility (IPAL) to collect and neutralize liquid waste from production activities.
- 07Attach a Statement Letter confirming the non-use of mercury in the Chlor Alkali production process in order to comply with the regulations regarding the prohibition of mercury use in accordance with the Minamata Convention on Mercury.
Ongoing obligations
8Compliance 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 a certificate for the prevention and management of chemical emergency situations in chemical industry business activities;
- 04(Special for large-scale industry) Provide minimal information including: a. Certificate of Analysis (COA) b. Labeling and Safety Data Sheet (SDS) in accordance with the Globally Harmonized System (GHS) that proves the minimum service has been provided to customers.
- 05Have a document in the form of a disaster evacuation SOP, including the arrangement of workplace safety signs.
- 06Having a Quality Management System Certificate (ISO 9001);
- 07Having documents of periodic calibration results for quality control machines/equipment;
- 08Ensure that the chlor alkali production business activities do not use mercury.
Issuing authority
The authority that issues the license depends on your situation.
| Authority | Applies when |
|---|---|
| Minister/Head of Agency | All of them |
| Minister/Head of Agency | Foreign Investment |
§ 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 2 candidate permits across 2 regulators; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Industry & Materials
1 permitMinistry of Industry. Applies to specific manufacturing activities — basic chemicals, optical/magnetic media, regulated industrial materials — that need a Ministry of Industry compliance certificate beyond the standard NIB.
Veterinary & Animal Medicine
1 permitMinistry of Agriculture. Applies if you produce, import, distribute, or sell animal medicines, vaccines, or feed; if you breed livestock; or if you operate a veterinary practice. A "veterinary control number" (NKV) is the entry-point permit for animal-product processors.
Speak to Emerhub
Get your KBLI 20111 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.