Foreign Investor FeasibilityKBLI 20119
§ 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 with carve-outs
Open to foreign investment, with carve-outs
KBLI 20119 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.
Listed restrictions
Prohibited activities
2- Chemical weapons manufacturing industry
- Industrial chemical industry and ozone-depleting substance industry
§ 02
How we handle your KBLI 20119 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 20119 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 20119, 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
8Documents 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
- 08Attach a Statement of Non-Production of Chemical Weapons and industries that produce Ozone Depleting Substances (ODS) in accordance with the Minamata Convention on Mercury.
Ongoing obligations
7Compliance 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 | 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 7 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
5 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.
- 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 with Major Processed Food Commitment VariationsSertifikat Pemenuhan Komitmen Variasi Mayor Pangan Olahan2 requirements3 obligationsFood and Drug Supervisory Agency
- Certificate of Good Manufacturing Practice for PharmaceuticalsSertifikat Cara Pembuatan Obat yang Baik3 requirements3 obligationsFood and Drug Supervisory Agency
- PERMIT FOR IMPLEMENTATION OF RISK MANAGEMENT PROGRAM (PMR) FOR PROCESSED FOOD PRODUCTION FACILITIESIZIN PENERAPAN PROGRAM MANAJEMEN RISIKO (PMR) SARANA PRODUKSI PANGAN OLAHAN8 requirements5 obligationsFood and Drug Supervisory Agency
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 20119 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.