KBLI 35118: Distribution and Sale of Electricity in a…

KBLI 35118: Distribution and Sale of Electricity in a… · Open to PMA

§ 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

Fully open to foreign investment

KBLI 35118 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.

This KBLI is not listed in any restricted, closed, SME-reserved or partnership-required schedule under Pres. Reg. 10/2021 (as amended). A 100% foreign-owned PT PMA may operate in this activity, subject to the licensing requirements shown below. BKPM's default minimum capital is IDR 2.5 billion paid-up with IDR 10 billion+ total investment commitment per KBLI realised over time, but sector regulators (OJK, ESDM, BPOM, Kominfo, etc.) can set higher minimums for specific activities — we confirm the actual figure before incorporation.

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

How we handle your KBLI 35118 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 days
We confirm KBLI 35118 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 days
We 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 35118, 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).

Sub-activity scope

Business License for Electricity Supply for Public Interest - Distribution and Sale of Electricity

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

5Days

Statutory turnaround

Application requirements

Documents 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. Operational schedule prepared by a certified business entity
02Establishment of Business Areas for Electricity Supply as determined by the Minister.
03Approval of the electricity supply business plan by the Minister or Governor in accordance with their authority in issuing business licenses.

Ongoing obligations

Compliance 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.

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 that has a business area 3. Its installation facilities cross provincial boundaries 4. Sells electricity and/or leases 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.

Speak to Emerhub

Get your KBLI 35118 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.

Get a quote for KBLI 35118

§ 01

Foreign investment rules

Status · open

Fully open to foreign investment

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%

§ 02

How we handle your KBLI 35118 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 days
We confirm KBLI 35118 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 days
We 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 35118, scoped to your specific business plan.

Request a quote

§ 05

Licensing requirements in detail

Sub-activity scope

Business License for Electricity Supply for Public Interest - Distribution and Sale of Electricity

What's required to operate

NIB

Preparation only — additional permit needed below

Operating License (Izin)

Processing time

5Days

Statutory turnaround

Application requirements

Documents 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. Operational schedule prepared by a certified business entity
02Establishment of Business Areas for Electricity Supply as determined by the Minister.
03Approval of the electricity supply business plan by the Minister or Governor in accordance with their authority in issuing business licenses.

Ongoing obligations

Compliance 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.

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 that has a business area 3. Its installation facilities cross provincial boundaries 4. Sells electricity and/or leases 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.

Speak to Emerhub

Get your KBLI 35118 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.

Get a quote for KBLI 35118

§ 08

Common questions about KBLI 35118

What is KBLI 35118?

KBLI 35118 (Distribution and Sale of Electricity within One Business Entity) is the 5-digit Indonesian Standard Industrial Classification code for distribution and sale of electricity in a single business unit. It sits within the Electricity, Gas, Steam/Hot Water, and Cold Air Supply category in the official KBLI 2020 taxonomy maintained by Badan Pusat Statistik (BPS).

Can foreign investors operate under KBLI 35118?

Yes — KBLI 35118 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 35118?

KBLI 35118's risk levels per business scale: Micro High, Small High, Medium High, Large High. Foreign-owned entities (PT PMA) must register at the Large scale.

What licenses does KBLI 35118 require?

NIB + Operating Licence (Izin). KBLI 35118 is High risk at Large scale, so the Operating Licence requires substantive sector-regulator approval before the business can operate. Expect a multi-month review with technical submissions.

What is the minimum capital for a PT PMA under KBLI 35118?

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 35118?

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 35118 specifically takes 5 days at the Large business scale.

Is KBLI 35118 eligible for Indonesian tax incentives?

Not on the Tax Holiday or Tax Allowance priority lists. KBLI 35118 businesses pay the standard 22% PPh Badan; Super Tax Deduction (300% R&D / 200% vocational training) may still apply for qualifying expenses.

Which authority issues the KBLI 35118 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 35118 need?

Beyond the NIB, no specific auxiliary permits (PB UMKU) are recorded for KBLI 35118. Sector-specific obligations may still apply — verify with the relevant ministry.

What KBLI codes are similar to 35118?

KBLIs in the same subgroup 3511: 35111 (Pembangkitan Tenaga Listrik); 35112 (Transmisi Tenaga Listrik); 35113 (Distribusi Tenaga Listrik); 35114 (Electricity Sales); 35115 (Power Generation, Transmission, Distribution, and Sale of Electricity as a Single Business Unit). These are closely related activities — see the related-codes section below for full list.

What you’ll need to operate under KBLI 35118

Foreign investment rules

Fully open to foreign investment

Electricity & power generation sector — Q3 2025

How we handle your KBLI 35118 setup

Confirm the optimal structure for your business

Incorporate your PT PMA

Licensing requirements in detail

Application requirements

Ongoing obligations

Issuing authority

Related codes in Electric Power Generation

Get your KBLI 35118 setup handled end-to-end.

Yes — open to PMA up to 100%.

What's specific to this sector

KBLI 35118 at a glance

What you’ll need to operate under KBLI 35118

Foreign investment rules

Fully open to foreign investment

Electricity & power generation sector — Q3 2025

How we handle your KBLI 35118 setup

Confirm the optimal structure for your business

Incorporate your PT PMA

Licensing requirements in detail

Application requirements

Ongoing obligations

Issuing authority

Related codes in Electric Power Generation

Get your KBLI 35118 setup handled end-to-end.

We obtain your NIB

Secure your full Operating License (Izin)

Hand-off to ongoing compliance

What is KBLI 35118?

Who needs KBLI 35118?

Why does the code matter?

Under the upcoming KBLI 2025

What changes for KBLI 35118

Risk level by business scale

Micro

Small

Medium

Large

Common questions about KBLI 35118

What is KBLI 35118?

Can foreign investors operate under KBLI 35118?

What is the risk level of KBLI 35118?

What licenses does KBLI 35118 require?

What is the minimum capital for a PT PMA under KBLI 35118?

How long does it take to register a business under KBLI 35118?

Is KBLI 35118 eligible for Indonesian tax incentives?

Which authority issues the KBLI 35118 license?

What other permits beyond the NIB does KBLI 35118 need?

What KBLI codes are similar to 35118?