Foreign Investor FeasibilityKBLI 25200
§ 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 · conditional
Foreign capital allowed up to 49%
49%
max foreign
KBLI 25200 permits foreign equity participation, but the maximum foreign shareholding is capped at 49%. The remaining shares must be held by Indonesian nationals or Indonesian-owned entities. Specific conditions for each sub-activity are listed below.
Listed restrictions
Conditional sub-activities
1- Primary equipment industry: Weapons and ammunition industry49% max foreignForeign capital is a maximum of 49%; or In the case of strategic interests, foreign capital may exceed 49% with the approval of the Minister of Defense.
§ 02
How we handle your KBLI 25200 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
Structure the shareholding to fit the 49% foreign-ownership cap
2–3 business daysKBLI 25200 caps foreign equity at 49%. We design a shareholding split that respects this cap while preserving your operational control — typically through a combination of voting/non-voting shares and a binding shareholders' agreement.
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 25200, 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
6Documents 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 that proves: 1) Control (ownership/rental) of machines for producing plastic and rubber industrial products and quality testing equipment 2) Compliance of installed production capacity with business data
- 03Have an organizational structure document for Human Resources that minimally consists of: 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 f. Person in charge of marketing
- 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.
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.
- 03Obligation Have: a. Technical assistance services b. Complaint handling services c. Material Safety Data Sheet d. Product Technical Data Sheet that proves the commitment to minimum service to customers
- 04Possess periodic calibration documents for quality control equipment or periodic results from independent laboratory tests on the produced products.
- 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).
- 07Having a product conformity certificate
- 08Having a storage warehouse in each division
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 4 candidate permits across 1 regulator; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Defence & Security
4 permitsMinistry of Defence. Applies when the operation produces, stores, or distributes weapons, ammunition, military vehicles, or explosives. The Ministry of Defence vets and re-vets the operator across the lifecycle.
- Defense Industry Establishment LicenseIzin Penetapan Industri Pertahanan19 requirements5 obligationsDefense
- License for the Establishment of Defense and Security Equipment FactoryIzin Pendirian Pabrik Alat Peralatan Pertahanan dan Keamanan24 requirements5 obligationsDefense
- License for the Production of Defense and Security EquipmentIzin Produksi Alat Peralatan Pertahanan dan Keamanan4 requirements5 obligationsDefense
- Marketing LicenseIzin Pemasaran8 requirements3 obligationsDefense
Speak to Emerhub
Get your KBLI 25200 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.