KBLI 20118: Basic Organic Chemical Industry Producing…

KBLI 20118: Basic Organic Chemical Industry Producing… · Open to PMA

§ 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

Fully open to foreign investment

KBLI 20118 is not on Indonesia's closed, conditional, SME-reserved or partnership-required schedules. A foreign investor may incorporate a PT PMA with up to 100% foreign ownership and operate in this activity directly.

This KBLI is not listed in any restricted, closed, SME-reserved or partnership-required schedule under Pres. Reg. 10/2021 (as amended). A 100% foreign-owned PT PMA may operate in this activity, subject to the licensing requirements shown below. BKPM's default minimum capital is IDR 2.5 billion paid-up with IDR 10 billion+ total investment commitment per KBLI realised over time, but sector regulators (OJK, ESDM, BPOM, Kominfo, etc.) can set higher minimums for specific activities — we confirm the actual figure before incorporation.

§ 02

How we handle your KBLI 20118 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 days
We confirm KBLI 20118 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 days
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.

Get an exact quote and timeline for KBLI 20118, scoped to your specific business plan.

Request a quote

§ 05

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

Documents 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.
02Possess 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 for producing chemical industry products and quality testing equipment.
03Have documents for the prevention and response to chemical emergency situations, which consist of: a. Risk assessment of the production process flow and management of the chemical list for the prevention and response to chemical emergencies in chemical industry activities, prepared independently (self-assessment) b. Procedures for the prevention and response to chemical emergencies, including: 1) Emergency response personnel, with a minimum of: i. 1 Coordinator ii. 1 Commander iii. 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.
07Have 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 risk mitigation infrastructure according to the risk assessment document

Ongoing obligations

Compliance 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.
03Possess a certificate for the prevention and management of chemical emergency situations in chemical industry business activities.
04Provide 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.
06Possess a Quality Management System certificate (ISO 9001).
07Possess periodic calibration documents for quality control machines/equipment.

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 14 candidate permits across 3 regulators; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.

Pharmaceuticals

11 permits

BPOM (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.

Veterinary & Animal Medicine

2 permits

Ministry 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.

Industry & Materials

1 permit

Ministry 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.

Certification for Prevention and Mitigation of Chemical Emergency Situations in Chemical Industry Business Activities
Sertifikasi Pencegahan dan Penanggulangan Keadaan Darurat bahan Kimia Dalam Kegiatan Usaha Industri Kimia
7 requirements7 obligations

Speak to Emerhub

Get your KBLI 20118 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.

Get a quote for KBLI 20118

§ 01

Foreign investment rules

Status · open

Fully open to foreign investment

§ 02

How we handle your KBLI 20118 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 days
We confirm KBLI 20118 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 days
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.

Get an exact quote and timeline for KBLI 20118, scoped to your specific business plan.

Request a quote

§ 05

Licensing requirements in detail

What's required to operate

NIB

Preparation only — additional permit needed below

Operating License (Izin)

Processing time

7Days

Statutory turnaround

Application requirements

Documents 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.
02Possess 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 for producing chemical industry products and quality testing equipment.
03Have documents for the prevention and response to chemical emergency situations, which consist of: a. Risk assessment of the production process flow and management of the chemical list for the prevention and response to chemical emergencies in chemical industry activities, prepared independently (self-assessment) b. Procedures for the prevention and response to chemical emergencies, including: 1) Emergency response personnel, with a minimum of: i. 1 Coordinator ii. 1 Commander iii. 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.
07Have 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 risk mitigation infrastructure according to the risk assessment document

Ongoing obligations

Compliance 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.
03Possess a certificate for the prevention and management of chemical emergency situations in chemical industry business activities.
04Provide 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.
06Possess a Quality Management System certificate (ISO 9001).
07Possess periodic calibration documents for quality control machines/equipment.

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)

Pharmaceuticals

11 permits

Veterinary & Animal Medicine

2 permits

Industry & Materials

1 permit

Certification for Prevention and Mitigation of Chemical Emergency Situations in Chemical Industry Business Activities
Sertifikasi Pencegahan dan Penanggulangan Keadaan Darurat bahan Kimia Dalam Kegiatan Usaha Industri Kimia
7 requirements7 obligations

Speak to Emerhub

Get your KBLI 20118 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.

Get a quote for KBLI 20118

§ 08

Common questions about KBLI 20118

What is KBLI 20118?

KBLI 20118 (Industri Kimia Dasar Organik Yang Menghasilkan Bahan Kimia Khusus) is the 5-digit Indonesian Standard Industrial Classification code for basic organic chemical industry producing specialty chemicals. It sits within the Manufacturing Industry category in the official KBLI 2020 taxonomy maintained by Badan Pusat Statistik (BPS).

Can foreign investors operate under KBLI 20118?

Yes — KBLI 20118 is fully open to foreign investment. A PT PMA may operate with up to 100% foreign ownership, subject to BKPM Reg. 5/2025 capital requirements (IDR 2.5 billion paid-up + IDR 10 billion+ commitment per KBLI).

What is the risk level of KBLI 20118?

KBLI 20118's risk levels per business scale: Micro Low, Small Low, Medium Low, Large High. Foreign-owned entities (PT PMA) must register at the Large scale.

What licenses does KBLI 20118 require?

NIB + Operating Licence (Izin). KBLI 20118 is High risk at Large scale, so the Operating Licence requires substantive sector-regulator approval before the business can operate. Expect a multi-month review with technical submissions. 14 sector-specific PB UMKU permits also apply depending on the exact activity. See the requirements summary at the top of the page.

What is the minimum capital for a PT PMA under KBLI 20118?

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.

How long does it take to register a business under KBLI 20118?

PT PMA setup typically takes 4-8 weeks: AHU registration (1-2 weeks), NIB issuance via OSS (immediate to 1 week), bank account opening (2-4 weeks). The licensing cycle for KBLI 20118 specifically takes 7 days at the Large business scale.

Is KBLI 20118 eligible for Indonesian tax incentives?

Not on the Tax Holiday or Tax Allowance priority lists. KBLI 20118 businesses pay the standard 22% PPh Badan; Super Tax Deduction (300% R&D / 200% vocational training) may still apply for qualifying expenses.

Which authority issues the KBLI 20118 license?

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.

What other permits beyond the NIB does KBLI 20118 need?

Beyond the NIB, KBLI 20118 carries 14 PB UMKU permits across 3 sector regulators: Pharmaceuticals (11), Veterinary & Animal Medicine (2), Industry & Materials (1). Most operations only need 2-4 of these — the relevant set depends on which specific activities you actually perform; Emerhub maps the right subset before filing.

What KBLI codes are similar to 20118?

KBLIs in the same subgroup 2011: 20111 (Basic Inorganic Chemical Industry: Chlorine and Alkali); 20112 (Basic Inorganic Chemical Industry: Industrial Gases); 20113 (Basic Inorganic Chemical Industry: Pigments); 20114 (Other Basic Inorganic Chemical Industry); 20115 (Organic Basic Chemical Industry Sourced from Agricultural Products). These are closely related activities — see the related-codes section below for full list.

What you’ll need to operate under KBLI 20118

Foreign investment rules

Fully open to foreign investment

How we handle your KBLI 20118 setup

Confirm the optimal structure for your business

Incorporate your PT PMA

Licensing requirements in detail

Application requirements

Ongoing obligations

Issuing authority

Auxiliary permits (PB UMKU)

Related codes in Basic Chemical Industry

Get your KBLI 20118 setup handled end-to-end.

Yes — open to PMA up to 100%.

What's specific to this sector

KBLI 20118 at a glance

What you’ll need to operate under KBLI 20118

Foreign investment rules

Fully open to foreign investment

How we handle your KBLI 20118 setup

Confirm the optimal structure for your business

Incorporate your PT PMA

Licensing requirements in detail

Application requirements

Ongoing obligations

Issuing authority

Auxiliary permits (PB UMKU)

Related codes in Basic Chemical Industry

Get your KBLI 20118 setup handled end-to-end.

We obtain your NIB

Secure your full Operating License (Izin)

Hand-off to ongoing compliance

What is KBLI 20118?

Who needs KBLI 20118?

Why does the code matter?

Under the upcoming KBLI 2025

Reorganised in KBLI 2025

Risk level by business scale

Micro

Small

Medium

Large

Common questions about KBLI 20118

What is KBLI 20118?

Can foreign investors operate under KBLI 20118?

What is the risk level of KBLI 20118?

What licenses does KBLI 20118 require?

What is the minimum capital for a PT PMA under KBLI 20118?

How long does it take to register a business under KBLI 20118?

Is KBLI 20118 eligible for Indonesian tax incentives?

Which authority issues the KBLI 20118 license?

What other permits beyond the NIB does KBLI 20118 need?

What KBLI codes are similar to 20118?