Foreign Investor FeasibilityKBLI 35111
§ 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 35111 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
Reserved for SMEs / cooperatives
2- Provision of electricity for power plants <1 MWAllocated for Cooperatives and UMKM.Sector: Mineral resource energy
- Provision of electricity for power plants <1 MW
Investment momentum
Electricity & power generation 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.
PMA realized
IDR 21.5t≈ USD 1.3b
+18.9% YoY
Top investing countries
Singapore24%
Japan21%
South Korea16%
IPP (Independent Power Producer) projects dominate. Renewables (KBLI 35101 solar, geothermal) are Tax-Holiday-eligible at maximum tier; coal-fired projects no longer attract greenfield FDI. PLN PPA terms are the binding commercial constraint.
§ 02
Regulations governing KBLI 35111
Current status, what each regulation actually requires for this activity, and how it ties to the PB UMKU sector permits below. Click through for the plain-English summary.
- House of Representatives of the Republic of Indonesia
- House of Representatives of the Republic of Indonesia
- President of the Republic of Indonesia
§ 03
Activities included under KBLI 35111
Sub-activities recorded under this KBLI in the OSS regulatory database. The classification covers any business operating in one or more of these areas.
Sub-activities under KBLI 35111
From the official OSS scope definition for this KBLI class. Each item is a distinct sub-activity that falls under this code.
- 01All, except for New and Renewable Energy Power Plants integrated with SPKLU.
- 02New and Renewable Energy Power Plants integrated with SPKLU
§ 04
How we handle your KBLI 35111 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 35111 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 35111, scoped to your specific business plan.
Request a quote§ 07
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).
Sub-activity scopes · 2
Sub-activity scope
All, except for New and Renewable Energy Power Plants integrated with SPKLU.
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
14Days
Statutory turnaround
Application requirements
3Documents and capabilities you must demonstrate at registration
- 01Feasibility study for electricity supply business, with the following document requirements (in Indonesian): a. Financial feasibility study b. Operational feasibility study c. Network interconnection study d. Installation location e. Single line diagram f. Type and capacity of the business to be conducted g. Construction schedule h. Operation schedule prepared by a certified Business Entity
- 02Agreement for the sale and purchase of electricity between the applicant and the prospective electricity buyer (PJBL and its amendments), with the selling price of electricity in the PJBL that: a. Complies with the provisions of the selling price of electricity or
- 03The selling price of electricity in PJBL has received approval for the selling price of electricity from the Minister/Governor in accordance with their authority in establishing business licensing.
Ongoing obligations
5Compliance and reporting duties throughout operation
- 01The installation to be operated must have an Operational Feasibility Certificate.
- 02Operations are carried out by Technical Personnel who possess a Competency Certificate.
- 03The equipment used must meet the mandatory Indonesian National Standards.
- 04Report business activities periodically to the Director General.
- 05Recommendation for Approval and Endorsement of the Import Plan of Goods in the case of a Business Entity importing capital goods to obtain customs duty exemption facilities.
Issuing authority
The authority that issues the license depends on your situation.
| Authority | Applies when |
|---|---|
| Minister/Head of Agency | 1. Conducted by State-Owned Enterprises (BUMN) 2. Integrated electricity supply business with a designated operational area 3. Installation facilities that cross provincial boundaries 4. Cross-border electricity trading and/or 5. Selling electricity and/or leasing electricity networks to business license holders for public electricity supply as determined by the Central Government |
| Minister/Head of Agency | Foreign Investment |
| Governor | 1. Has a business area but does not include electricity generation businesses. 2. Has installation facilities within the province. 3. Sells electricity and/or leases electricity networks to licensed electricity supply providers for public interest as determined by the Provincial Government. |
§ 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 2 candidate permits across 2 regulators; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Energy & Mineral Resources
1 permitMinistry of Energy & Mineral Resources (ESDM). Applies to mining, oil & gas extraction, power generation, fuel distribution, and gas pipeline infrastructure. Most permits attach to a specific site or lifecycle phase (exploration, production, decommissioning) rather than the company as a whole.
Nuclear & Radiation Safety
1 permitBAPETEN (Nuclear Energy Regulatory Agency). Applies whenever ionizing radiation sources are involved — radiology, radiotherapy, industrial NDT, certain manufacturing inputs. BAPETEN licenses the operator, the facility, and each radiation source separately.
Speak to Emerhub
Get your KBLI 35111 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.