26120Semiconductor and Other Electronic Component Manufacturing Industry
Industri Semi Konduktor Dan Komponen Elektronik Lainnya
Last updated · Sourced from OSS Indonesia
This group includes the manufacturing of semiconductors and other electronic components, such as transistors and similar semiconductor equipment, integrated circuits, printed circuits, inductors, resistors, capacitors, and various other electronic components. It includes the microprocessor industry, types of electronic component inductors (e.g., coils, transformers), electronic crystals and crystal assemblies, solenoids, switches, and transducers for electronic applications, interface cards (e.g., sound cards, video cards, controllers, network cards, modems), display components (plasma, polymer, LCD), light-emitting diodes (LED), IC or integrated circuits (analog, digital, or hybrid), and diodes. It also includes the manufacturing of photovoltaic cells and smartcard chips.
KBLI 26120 at a glance
- KBLI code
- 26120
- Taxonomy version
- KBLI 2020
- Activity (English)
- Semiconductor and Other Electronic Component Manufacturing Industry
- Activity (Indonesian)
- Industri Semi Konduktor Dan Komponen Elektronik Lainnya
- Category
- Manufacturing Industry
- Risk level (Large scale, PMA)
- Medium-High
- Foreign ownership status
- Fully open to PMA (100%)
- Minimum capital (PT PMA)
- IDR 2.5 billion paid-up + IDR 10 billion+ commitment per KBLI (BKPM Reg. 5/2025)
- Primary licensing instrument
- NIB
- Issuing authority (PMA)
- Minister/Head of Agency
- Tax incentive eligibility
- Tax Holiday eligible
- Last verified
- April 24, 2026
Key facts for KBLI 26120
The essentials a foreign investor needs to know before reading the rest of this page.
100% foreign ownership permitted via PT PMA. KBLI 26120 is not on Indonesia's closed, conditional, SME-reserved or partnership-required schedules under Pres. Reg. 10/2021.
Default minimum paid-up capital: IDR 2.5 billion (~USD 160K) under BKPM Reg. 5/2025 (effective Oct 2025) — applies unless a sector regulator sets a higher figure for this activity. The often-cited IDR 10 billion is the total investment commitment per KBLI realised over time via quarterly LKPM reports, not required upfront.
Medium-high-risk activity — requires NIB + Standard Certificate (Verified) to operate commercially. NIB alone enables only the preparation stage; a Standard Certificate must be obtained before invoicing or production starts.
Statutory licensing turnaround: 7 days once we submit the application — on top of the 2–3 weeks for PT PMA incorporation. We coordinate the full sequence end-to-end.
Issuing authority for PMA: Minister/Head of Agency — this KBLI is routed centrally rather than to provincial / regency level.
Ongoing reporting: quarterly LKPM (Investment Activity Report) to BKPM plus 7 sector-specific obligations. We file these on your behalf as part of monthly compliance — you stay out of the OSS portal entirely.
- Risk level
- Medium-HighNIB + verified cert.
- Primary license
- NIB + Standard Certificate (Verified)NIB enables preparation only — additional permit needed to operate
- Setup timeline
- 7 DaysStatutory turnaround at OSS
- Issuing authority
- Minister / Agency HeadDefault issuing authority
- Min. paid-up capital
- IDR 2.5 BBKPM default paid-up — sector rules may set a higher figure
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.
Fully open to foreign investment
KBLI 26120 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.
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.
What it costs to set up a PT PMA under KBLI 26120
Realistic year-1 cost stack for a foreign-investor PT PMA operating under this KBLI. Numbers reflect Emerhub's actual engagement scope; sector-specific overrides applied where present.
Eligible for Tax Holiday — multi-year corporate income tax exemption can offset the setup cost many times over.
Approximate USD equivalents at IDR 16,000/USD (Budget 2025 reference rate).
Engagement scoped to your specific business plan — exact numbers depend on operating jurisdiction, foreign-worker count, and bank choice for capital deposit.
Get an exact quote for KBLI 26120Electronics, semiconductors & telco equipment sector — Q3 2025
BKPM-reported foreign investment context for the broader sector this KBLI sits in. Data is aggregated at the major-sector level — BKPM does not publish per-5-digit-KBLI breakdowns publicly.
Tax Holiday Pioneer Industry — semiconductor manufacturing (KBLI 26120) at maximum tier. Batam Free Trade Zone + KEK Nongsa Digital Park attract the largest concentration of foreign-owned electronics + EMS plants.
Source: BKPM (2026-04-29). Updated quarterly.
View original on data.bkpm.go.id →How we handle your KBLI 26120 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 26120 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.
What we need from you- Powers of attorney (we prepare; you sign and notarize)
- Director / commissioner appointment letters
- Initial capital deposit confirmation
- 3
We obtain your NIB
1–2 business daysWe file the OSS application with KBLI 26120 as your primary business activity, complete the risk-based assessment, and collect the NIB (Business Identification Number) for you — typically within hours of submission. You don't need to touch the OSS portal.
What we need from you- Office address (virtual office acceptable for many KBLIs; we can arrange one)
- 4
Secure your Standard Certificate (Verified)
7+ business daysNIB 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. We prepare the application bundle, liaise with the competent ministry, and chase issuance through to the certificate. Statutory turnaround: 7 business days — real-world timing typically runs longer when site inspections or additional clarifications are requested.
What we need from you- Technical documentation specific to your operation
- Appointment of a Penanggung Jawab Teknis (PJT — technical responsible person)
- 5
Hand-off to ongoing compliance
OngoingPost-launch we run your monthly tax filings, quarterly LKPM (Investment Activity Reports), annual general meeting (RUPS), and any sector-specific reporting. You get a single point of contact and a monthly compliance digest — no Indonesian-language paperwork on your desk.
What is KBLI 26120?
A plain-English explanation of this classification and the businesses it covers.
KBLI 26120 (Industri Semi Konduktor Dan Komponen Elektronik Lainnya) is the 5-digit Indonesian Standard Industrial Classification code for semiconductor and other electronic component manufacturing industry. It sits within Manufacturing Industry under the subgroup Semiconductor Industry and Other Electronic Components Industry (major group 26) in the official KBLI 2020 taxonomy maintained by Statistics Indonesia (BPS).
Who needs KBLI 26120?
Any Indonesian or foreign-owned entity that intends to operate in semiconductor and other electronic component manufacturing industry as a primary or secondary business activity must select this code on its NIB (Business Identification Number). The selected code determines the licensing instruments required, the issuing authority, and the ongoing compliance obligations.
Why does the code matter?
Indonesia's OSS Risk-Based Approach uses the KBLI code to determine three things: (1) whether foreign investment is permitted and at what cap, (2) the risk-based licensing instruments required, and (3) the authority that issues each instrument. Choosing the wrong code can delay or invalidate your license.
Common business profiles under KBLI 26120
Archetypal businesses operating under this code. Use these to recognize whether your venture maps to KBLI 26120 as primary or secondary activity.
What businesses register under KBLI 26120?
Real-world business archetypes — names omitted; profiles describe operational shape, not specific companies.
- 01Semiconductor packaging & test (OSAT) facility
Foreign chipmakers establishing back-end OSAT operations in Indonesia's electronic-components corridors (Batam, Bekasi, Karawang).
- 02Printed-circuit-board (PCB) manufacturer
High-volume PCB production for consumer electronics, automotive, and telecom OEMs.
- 03Specialty electronic-components manufacturer
Niche component plays — sensors, connectors, magnetics, passive components.
Semiconductor and electronic-components manufacturing are PMA-open and qualify for Tax Holiday (PMK 130/2020 pioneer-industry list — basic-electronics). Strategic priority sector with fast-track licensing pathways via BKPM.
Manufacturing-specific guidance
Sector context that applies to KBLI 26120 beyond the generic OSS process. Verify with the relevant ministry before committing capital.
- ·Industry data reporting via SIINas every 6 months.
- ·BPOM registration required for any food, drug, cosmetic, or medical device produced.
- ·Halal certification mandatory for most consumable products.
Regulations governing KBLI 26120
Indonesian regulations that explicitly reference or govern the activities classified under KBLI 26120. Click through for the plain-English summary and official source.
3 regulations linked
Sourced from the KBLI Directory regulations registry. Each linked regulation page includes the official Indonesian text link.
- PMK 130/2020 (Tax Holiday)Finance Ministry Regulation
Ministry of Finance Regulation No. 130/PMK.010/2020 on Corporate Income Tax Reduction Facility (Tax Holiday)
tax-holiday pioneerSemiconductors and electronic components — pioneer industry - PP 78/2019 (Tax Allowance)Government Regulation
Government Regulation No. 78 of 2019 on Income Tax Facility for Investment in Specific Business Fields and/or Specific Regions (Tax Allowance)
tax-allowance priorityElectronic components — priority sector - PP 41/2021 (FTZ)Government Regulation
Government Regulation No. 41 of 2021 on the Operation of Free Trade Zones and Free Ports (FTZ/KPBPB)
governs this activityElectronics assembly — heavy concentration in Batam FTZ
Under the upcoming KBLI 2025
Indonesia's BPS published the new KBLI 2025 taxonomy in early 2025. OSS, BKPM and the operating ministries have not yet adopted it — KBLI 2020 remains the active standard for business registration. This is what's coming for this specific code.
Reorganised in KBLI 2025
KBLI 26120 does not carry the same number forward into KBLI 2025 — the activity has been reclassified, but the precise mapping isn't recorded in our database yet.
- ·For current operations, KBLI 26120 remains valid — OSS still uses KBLI 2020 for all business registrations.
- ·The KBLI 2025 successor codes are listed in the official BPS transition document below; check for the activity-specific mapping when planning future structures.
- ·Once OSS announces the KBLI 2025 cutover, existing entities will need to update their primary KBLI to the relevant successor — typically straightforward.
When OSS adopts KBLI 2025, we'll migrate your existing entity to the appropriate successor code as part of ongoing compliance — no action needed on your end now.
Talk to a specialistRisk level by business scale
Indonesia's OSS Risk-Based Approach assigns a separate risk level for each of the four business scales. The licensing instruments required (NIB, Standard Certificate, Operating License) are determined by the risk level. Foreign-owned entities (PT PMA) must register at the Large scale, so the rightmost column applies to most foreign investors.
Micro
Small
Medium
Large
PMA scaleWhat does each risk level require to operate? ›
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).
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 proving: 1) Control (ownership/rental) of machines for producing electronic industry products and quality testing equipment 2) Compliance of installed production capacity with business data
- 03Have a human resources organizational structure document that includes at least: a. Company leadership b. Production and/or quality control department c. Marketing department
- 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 that proves the availability of a. Dedicated production space b. Quality control space
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.
- 03Have: a. A user manual for the produced goods (including maintenance and troubleshooting handling) b. A card/letter/electronic code for the warranty of malfunctioning produced goods that proves the minimum service commitment to customers.
- 04Possess periodic calibration documents for quality control equipment or periodic results from independent laboratory tests on the produced products.
- 05Have a document for the SOP of the periodic calibration process for quality control equipment.
- 06Possess periodic independent laboratory test results for the produced products.
- 07Have a document in the form of a disaster evacuation SOP, including the arrangement of workplace safety signs.
- 08Possess a Quality Management System certificate (ISO 9001).
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 |
Common questions about KBLI 26120
What is KBLI 26120?
KBLI 26120 (Industri Semi Konduktor Dan Komponen Elektronik Lainnya) is the 5-digit Indonesian Standard Industrial Classification code for semiconductor and other electronic component manufacturing industry. 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 26120?
Yes — KBLI 26120 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 26120?
KBLI 26120's risk levels per business scale: Mikro Medium-High, Kecil Medium-High, Menengah Medium-High, Besar Medium-High. Foreign-owned entities (PT PMA) must register at the Large scale.
What licenses does KBLI 26120 require?
NIB only — KBLI 26120 is a low-risk activity in OSS RBA, so the Business Identification Number alone suffices for operational licensing.
What is the minimum capital for a PT PMA under KBLI 26120?
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 26120?
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 26120 specifically takes 7 days at the Large business scale.
Is KBLI 26120 eligible for Indonesian tax incentives?
Yes — KBLI 26120 is on the Tax Holiday pioneer-industry list (PMK 130/2020) under Semiconductors. Eligible for 5-20 year corporate income tax exemption depending on capex tier.
Which authority issues the KBLI 26120 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 26120 need?
Beyond the NIB, no specific auxiliary permits (PB UMKU) are recorded for KBLI 26120. Sector-specific obligations may still apply — verify with the relevant ministry.
What KBLI codes are similar to 26120?
KBLI 26120 is the only entry in its subgroup 2612. Browse the parent group 261 for related activities.
