The Indonesian Ministry of Law and Human Rights (“MOLHR”) and the Coordinating Ministry for Economic Affairs (“CMEA”) issued a joint announcement on October 11, 2018, which was published on the website of the Online Single Submission (“OSS”) system.
According to the announcement, limited liability companies (Perseroan Terbatas or “PTs”) that were established or expanded their lines of business under the 2015 Standard Classification of Indonesian Business Fields (Klasifikasi Baku Lapangan Usaha or “KBLI”) have one year from the time of the announcement to amend their recorded line or lines of business in accordance with the 2017 KBLI. Failure to comply with this requirement before the one-year deadline expires will result in the suspension of the PT’s Business Identification Number (“NIB”).
The reason behind this order is that the MOLHR online system uses the 2015 KBLI, while the newly established OSS online licensing system uses the 2017 KBLI.
However, there are only minor differences between the 2015 and 2017 KBLIs. For example, the changes in the 2017 KBLI include the division of web portal businesses into “Non-Commercial Web Portal and/or Digital Platform Businesses” and “Commercial Web Portal and/or Digital Platform Businesses”.
Companies with lines of business that remain unchanged under the 2017 KBLI should not be affected by this requirement. Otherwise, PTs should adjust their lines of business by amending their Articles of Association and reporting the amendment to the MOLHR online system, probably through a notary.
SSEK Legal Consultants is a leading full-service corporate and commercial law firm based in Jakarta, Indonesia. Since its founding in Jakarta in 1992, SSEK has grown to one of the largest and most highly regarded corporate law firms in Indonesia. SSEK is recognized by leading legal directories including Chambers & Partners, Legal 500 and Asia Law as one of the best law firms in Indonesia across all major practice areas including banking and finance, capital markets, corporate law and mergers and acquisitions, construction and real estates, energy and natural resources, IT and telecommunications, labor and employment, project finance, restructuring and insolvency, and shipping. SSEK has been named the Indonesian Law Firm of the Year on multiple occasions.
This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.