Foreign Investor FeasibilityKBLI 20294
§ 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 · partnership required
Open subject to mandatory SME partnership
KBLI 20294 is open to investment but the operating entity must form a mandatory partnership with cooperatives or Indonesian UMKM. The structure and terms of the partnership are listed below.
Listed restrictions
Requires SME / cooperative partnership
1- Essential oil industryPartnership with Cooperatives and UMKMSector: Industry
§ 02
Halal certification
Indonesia requires BPJPH Halal certification for an expanding range of consumer-product categories. This KBLI's activities fall in scope — see what's required and when.
BPJPH certification required
Halal certification will be mandatory for cosmetics by Oct 2026.
Mandatory by October 2026
Under PP 39/2021, cosmetics, personal-care, and household-chemical products entering the Indonesian market must be Halal-certified by October 2026. Foreign-brand cosmetics need to be ready ahead of that — covering raw materials (including sourcing), formulation, manufacturing facilities, and packaging. Plan 4-6 months for the BPJPH process; we manage it end-to-end alongside BPOM cosmetic registration.
- 01
Audit & gap analysis
Review your formulation, supply chain, and facility against BPJPH criteria. Identify ingredients or processes that need swapping.
- 02
LPH inspection
An accredited Halal Inspection Body (LPPOM-MUI is the largest) audits the facility and reviews documentation.
- 03
BPJPH issuance
The Halal certificate is issued under the BPJPH register and the Halal label can be applied to packaging.
Halal certification is a core Emerhub service. We've handled BPJPH projects for foreign-brand food, cosmetics, and pharma operators across Indonesia — including supply-chain re-sourcing where needed. Bundle it with your PT PMA setup and we coordinate both timelines.
Talk to a Halal advisor§ 03
How we handle your KBLI 20294 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.
§ 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).
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.
- 02Possess documents in the form of: a. Machine specifications and/or equipment list b. Photos of machines/equipment c. Sales/rental agreement proving ownership (ownership/rental) of machines for producing downstream chemical industry products and quality testing equipment.
- 03Have a human resources organizational structure document that minimally includes: a. Company leadership b. Person in charge of production and/or quality control c. Person in charge of marketing d. Person in charge of finance e. Person in charge of human resources development
- 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.
- 07Having a halal certificate
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.
- 03Ensure the safety and security of equipment, processes, production results, storage, and transportation, in accordance with applicable laws and regulations.
- 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 10 candidate permits across 1 regulator; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Pharmaceuticals
10 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.
- Approval for the Implementation of Processed Food Clinical TrialsPersetujuan Pelaksanaan Uji Klinik Pangan Olahan2 requirements1 obligationFood and Drug Supervisory Agency
- 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 Minor Variation Commitment Compliance for Processed FoodSertifikat Pemenuhan Komitmen Variasi Minor Pangan Olahan3 requirements3 obligationsFood and Drug Supervisory Agency
Speak to Emerhub
Get your KBLI 20294 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.