Indonesian Business Glossary

Environmental Impact Assessment - Required for high-risk business activities that may significantly affect the environment.

Importer Identification Number - Required to import goods into Indonesia. Now integrated into the NIB.

Investment Coordinating Board - The government agency responsible for promoting and facilitating investment in Indonesia.

National Agency of Drug and Food Control - The regulatory body overseeing pharmaceuticals, food, cosmetics, and medical devices.

Good Distribution Practice for Medical Devices - Certification required for companies distributing medical devices in Indonesia.

Good Manufacturing Practice for Pharmaceuticals - Certification required for pharmaceutical manufacturers.

Limited Partnership - A business structure with active and silent partners. Cannot have foreign ownership and has limitations compared to PT.

Negative Investment List - The predecessor to the current Positive Investment List. Listed sectors closed or restricted to foreign investment.

Sea Cargo Forwarding - Freight forwarding services for sea cargo. Requires specific licensing.

International Standard Industrial Classification - The UN's global classification system that KBLI is based on.

Distribution License/Marketing Authorization - Required for products like pharmaceuticals, medical devices, food, and cosmetics before they can be sold in Indonesia.

Occupational Health and Safety - Workplace safety regulations and certifications required for certain business activities.

Indonesian Standard Industrial Classification - The national business classification system used for company registration, statistics, and regulatory purposes.

Permanent Stay Permit Card - Permanent residence permit for foreigners who have held KITAS for a certain period.

Limited Stay Permit Card - Temporary residence permit for foreigners working or investing in Indonesia.

Not Elsewhere Classified - A suffix used in KBLI codes for activities that don't fit into specific subcategories. Used as a catch-all for legitimate business activities.

Business Identification Number - The primary business registration number issued through OSS. Serves as company identity, import license (API), and customs registration (NIK) combined.

Customs Identification Number - Required for customs activities. Now integrated into the NIB.

Indonesia's integrated online licensing system where businesses register and obtain permits. The current system is OSS-RBA (Risk Based Approach).

The risk-based business licensing system introduced under the Omnibus Law. Determines permit requirements based on the risk level of business activities.

Foreign Ship Agency Notification - Registration required for companies acting as agents for foreign shipping lines.

Domestic Investment - Business investment by Indonesian citizens or entities. Some sectors are reserved exclusively for PMDN.

The current investment regulation that specifies which business sectors are open to foreign investment and any applicable restrictions or requirements.

Limited Liability Company - The standard Indonesian corporate entity. Local ownership only (100% Indonesian shareholders).

Foreign Investment Company - A PT with foreign ownership. Subject to the Positive Investment List restrictions on foreign ownership percentages.

Business Entity Certificate - Required for construction companies to participate in government projects and certain private sector contracts.

Trading Business License - Previously required for trading activities, now largely replaced by the NIB system.

Work Competency Certificate - Individual certification required for workers in regulated professions like construction and certain technical fields.

Occupational Health and Safety Management System - Certification required for companies with 100+ workers or high-risk activities.

Indonesian National Standard - Technical standards that certain products must meet. Some SNI certifications are mandatory.

Company Registration Certificate - Previously required, now replaced by the NIB under the OSS system.

Environmental Management and Monitoring Efforts - A simplified environmental document required for medium-risk activities.