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Zantara AI
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Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppIf you manufacture anything in Indonesia — whether it's craft beer in Ubud, natural skincare in Canggu, garments for export, or electronics for the domestic market — your KBLI code is the first decision that determines your entire regulatory path. Under KBLI 2025, manufacturing encompasses Section C (Industry Pengolahan), spanning codes 10xxx through 33xxx with over 500 distinct classifications across 24 major sub-sectors. Unlike retail or services, manufacturing carries additional layers of compliance: product standards (SNI), environmental impact assessments (AMDAL), industrial zone requirements, and sector-specific ministry approvals. The manufacturing code you register on your NIB determines not just your risk classification, but whether you need a factory location approval before registration, what environmental documentation you must file, and which products require pre-market certification. The June 2026 transition window has closed.
This guide covers the complete manufacturing landscape under KBLI 2025: the 24 sub-sectors from food processing to repair services, which codes are strategically relevant for Bali-based foreign investors, how SNI and AMDAL requirements map to specific manufacturing categories, and the critical distinction between light manufacturing (potentially home-based) and industrial manufacturing (requiring designated zones).
Manufacturing in Indonesia is organized into 24 divisions under Section C. Here is the full structure:
| KBLI Range | Sub-Sector | Coverage | Bali Relevance |
|---|---|---|---|
| 10xxx | Food Products | Meat, seafood, dairy, grain milling, bakery, oils, coffee processing | High - F&B manufacturing |
| 11xxx | Beverages | Non-alcoholic drinks, alcoholic drinks, mineral water | High - Craft beverages |
| 12xxx | Tobacco Products | Cigarettes, cigars, tobacco processing | Low - Restricted sector |
| 13xxx | Textiles | Spinning, weaving, finishing | Medium - Fashion supply chain |
| 14xxx | Garments | Clothing, accessories, leather goods | High - Export manufacturing |
| 15xxx | Leather & Footwear | Tanning, footwear, bags | Medium - Artisan production |
| 16xxx | Wood Products | Sawmilling, wood panels, wooden containers | High - Furniture supply chain |
| 17xxx | Paper & Printing | Pulp, paper, printing, publishing | Low - Not Bali-focused |
| 18xxx | Printing & Reproduction | Commercial printing, media reproduction | Low - Service-like |
| 19xxx | Petroleum Products | Refined petroleum, coke | Not applicable - Large industrial |
| 20xxx | Chemicals | Industrial chemicals, fertilizers, pesticides | Low - Complex regulations |
| 21xxx | Pharmaceuticals | Medicines, traditional medicine, supplements | Medium - Health products |
| 22xxx | Rubber & Plastic | Tires, plastic products, packaging | Medium - Packaging industry |
| 23xxx | Non-Metallic Minerals | Glass, ceramics, cement, stone cutting | Medium - Artisan ceramics |
| 24xxx | Basic Metals | Iron, steel, precious metals | Low - Industrial scale |
| 25xxx | Fabricated Metal Products | Metal structures, tools, machinery parts | Low - Industrial focus |
| 26xxx | Electronics | Computers, communications equipment | Medium - Tech hardware |
| 27xxx | Electrical Equipment | Electric motors, batteries, cables, lighting | Low - Industrial components |
| 28xxx | Machinery | General machinery, agricultural machinery | Low - Industrial equipment |
| 29xxx | Motor Vehicles | Cars, auto parts, trailers | Low - Not Bali-applicable |
| 30xxx | Other Transport Equipment | Ships, aircraft, rail, bicycles | Low - Niche sectors |
| 31xxx | Furniture | Household furniture, office furniture, mattresses | Very High - Core Bali industry |
| 32xxx | Other Manufacturing | Jewelry, musical instruments, sports equipment, games | Very High - Artisan products |
| 33xxx | Repair Services | Machinery repair, electronic repair, metal product repair | Medium - Support services |
Key observation for foreign investors in Bali: The highest-opportunity manufacturing sectors are concentrated in light manufacturing (food processing, garments, furniture, cosmetics, jewelry) rather than heavy industrial manufacturing. Bali's economy, infrastructure, and investment environment favor artisan-scale and export-oriented production rather than large-scale industrial operations.
Not all 500+ manufacturing codes are equally relevant to foreign-owned businesses in Bali. Here are the strategic codes that align with Bali's economic strengths, infrastructure realities, and foreign investor capabilities.
| KBLI Code | Name (Indonesian) | Name (English) | Risk Level | PMA |
|---|---|---|---|---|
| 10710 | Industri Roti dan Kue | Bakery & Confectionery | Sedang | Yes |
| 10793 | Industri Makanan Lainnya | Other Food Products | Sedang | Yes |
| 10821 | Industri Cokelat dan Kembang Gula | Chocolate & Confectionery | Sedang | Yes |
| 10749 | Industri Bumbu Masak dan Penyedap Masakan Lainnya | Spices & Seasonings | Sedang | Yes |
Why these codes matter in Bali:
Bali's organic food scene, health-conscious consumer base, and export-oriented F&B startups make food processing one of the most active foreign investment categories. A natural skincare company producing coconut oil body products uses 10793. A craft bakery supplying hotels and cafes uses 10710. A company producing Balinese spice blends for export uses 10749.
Key requirements:
| KBLI Code | Name (Indonesian) | Name (English) | Risk Level | PMA |
|---|---|---|---|---|
| 20231 | Industri Kosmetik, Termasuk Pasta Gigi | Cosmetics & Toothpaste | Sedang | Yes |
| 20232 | Industri Produk Perawatan Kulit, Rambut, dan Kuku | Skincare, Haircare, Nail Products | Sedang | Yes |
Why these codes matter in Bali:
Bali is home to dozens of foreign-owned natural cosmetics brands producing skincare, haircare, and wellness products using local ingredients (coconut oil, essential oils, aloe vera). These businesses typically manufacture in small batches for e-commerce, export, or boutique retail.
Key requirements:
Investment note: Many natural cosmetics startups in Bali operate as toll manufacturing — they own the brand and formulas, but outsource actual production to licensed manufacturers. This avoids the capital investment in GMP-certified facilities. If you go this route, your business uses a different KBLI code (likely 46499 for wholesale distribution or 47911 for online retail) rather than manufacturing codes.
| KBLI Code | Name (Indonesian) | Name (English) | Risk Level | PMA |
|---|---|---|---|---|
| 14111 | Industri Pakaian Jadi (Rajutan) | Knitted Garments | Sedang | Yes |
| 14112 | Industri Pakaian Jadi (Bukan Rajutan) | Non-Knitted Garments | Sedang | Yes |
| 14120 | Industri Pakaian Jadi dari Kulit | Leather Garments | Sedang | Yes |
Why these codes matter in Bali:
Bali has a thriving garment manufacturing sector producing resort wear, yoga apparel, surf clothing, and fashion for export. Many foreign-owned fashion brands manufacture in Bali for ethical production narratives (local artisans, natural materials, fair wages) combined with export logistics through Ngurah Rai airport and Benoa port.
Key requirements:
| KBLI Code | Name (Indonesian) | Name (English) | Risk Level | PMA |
|---|---|---|---|---|
| 31001 | Industri Furnitur dari Kayu | Wood Furniture | Rendah | Yes |
| 31002 | Industri Furnitur dari Rotan dan Atau Bambu | Rattan & Bamboo Furniture | Rendah | Yes |
| 31003 | Industri Furnitur dari Plastik | Plastic Furniture | Rendah | Yes |
| 31009 | Industri Furnitur dari Bahan Lainnya | Other Material Furniture | Rendah | Yes |
Why these codes matter in Bali:
Furniture manufacturing is Bali's signature industry. The island exports containers of teak, rattan, and bamboo furniture daily to Australia, Europe, and North America. Foreign-owned furniture manufacturers in Gianyar, Tabanan, and Denpasar employ thousands of Balinese artisans.
Key requirements:
Risk classification note: Furniture manufacturing codes are classified as Rendah (Low) risk, making them among the easiest manufacturing categories for foreign investment. Compare this to food processing (Sedang) or chemicals (Tinggi), and the regulatory path is significantly cleaner.
| KBLI Code | Name (Indonesian) | Name (English) | Risk Level | PMA |
|---|---|---|---|---|
| 32101 | Industri Perhiasan dari Logam Mulia dan/atau Batu Mulia | Jewelry (Precious Metals & Stones) | Rendah | Yes |
| 32102 | Industri Perhiasan Imitasi dan Barang Sejenis | Imitation Jewelry | Rendah | Yes |
| 32903 | Industri Barang-Barang Lainnya Yang Belum Diklasifikasikan di Tempat Lain | Other Manufacturing Not Elsewhere Classified | Rendah | Yes |
Why these codes matter in Bali:
Bali's silver jewelry workshops in Celuk, fashion jewelry manufacturers in Ubud, and artisan craft producers across the island represent a significant portion of Bali's foreign-owned manufacturing landscape. These businesses often blur the line between artisan workshop and small-scale factory.
Key requirements:
The 32903 wildcard: This "not elsewhere classified" code is the catch-all for manufacturing that does not fit neatly into other categories. If you are producing handmade yoga mats, artisan candles, incense, or bamboo straws, 32903 may be your code. It carries Rendah risk and allows PMA.
Not all manufactured products require SNI certification, but many do. Here is how to determine whether your product category is SNI-mandatory.
SNI (Standar Nasional Indonesia) is the national product standard system managed by BSN (Badan Standardisasi Nasional). For products listed on the mandatory SNI register, certification is required before you can sell in Indonesia's domestic market. Export-only products generally do not require SNI.
| Product Category | Mandatory SNI | KBLI Codes Affected |
|---|---|---|
| Food products | Yes (selected categories) | 10xxx - All food processing |
| Cosmetics | Yes (selected categories) | 20231, 20232 |
| Electronics | Yes (most products) | 26xxx, 27xxx |
| Construction materials | Yes | 16xxx (wood panels), 23xxx (cement, glass) |
| Textiles & garments | Yes (children's clothing, certain fabrics) | 13xxx, 14xxx |
| Furniture | No (for export), Yes (for domestic sales) | 31xxx |
| Toys | Yes | 32404 |
| Helmets & safety equipment | Yes | 25xxx, 32xxx |
Here is the critical distinction many foreign manufacturers miss:
Strategic implication: Many foreign-owned manufacturers in Bali start as export-only operations to avoid SNI complexity, then add domestic sales channels once they have revenue and can afford the certification process.
Manufacturing facilities have a higher environmental footprint than service businesses. Indonesia's environmental compliance system uses three tiers based on the scale and impact of your operations.
| Tier | Requirement | Scale | Complexity | KBLI Risk Level |
|---|---|---|---|---|
| AMDAL | Full Environmental Impact Assessment | Large industrial scale (high emissions, water use, waste) | High - 6-12 months to complete | Tinggi |
| UKL-UPL | Environmental Management & Monitoring Plan | Medium scale (moderate impact) | Medium - 2-4 months | Sedang |
| SPPL | Environmental Compliance Statement | Small scale (low impact, home-based) | Low - Self-declaration | Rendah |
Under the OSS risk-based licensing system, your KBLI code's risk classification correlates directly with environmental requirements:
Critical caveat: The risk classification is not the only factor. Production capacity, facility size, location (proximity to residential areas, water sources), and specific processes also determine whether you need AMDAL vs UKL-UPL. A large-scale food processing plant (10xxx) may trigger AMDAL even if the KBLI code is classified Sedang.
| Tier | Document Preparation | Government Review | Total Timeline |
|---|---|---|---|
| AMDAL | 3-6 months (requires third-party consultants) | 3-6 months (KLHK review) | 6-12 months |
| UKL-UPL | 1-2 months (can be internal or consultant) | 1-2 months (regional KLHK) | 2-4 months |
| SPPL | 1-2 weeks (self-declaration form) | Immediate (filed with NIB) | 1-2 weeks |
Strategic planning: If your manufacturing business requires AMDAL, factor this into your timeline. You cannot begin operations until the AMDAL is approved. Many foreign investors underestimate this and face costly delays.
Not all manufacturing can happen in residential or mixed-use zones. Depending on your KBLI code and production scale, you may be required to locate your factory in a designated kawasan industri (industrial zone).
| Manufacturing Type | Industrial Zone Required? | Rationale |
|---|---|---|
| Light manufacturing (jewelry, handicrafts, small-scale food) | No — Can operate in commercial zones | Low environmental impact, low traffic, artisan-scale |
| Medium manufacturing (garments, furniture workshops, cosmetics production) | Depends — Local regulations vary by kabupaten | Moderate impact, some noise/waste |
| Heavy manufacturing (chemicals, metals, large-scale food processing) | Yes — Must be in designated industrial zones | High environmental impact, safety considerations, heavy logistics |
Bali-specific reality: Bali has limited designated industrial zones compared to Java. The primary industrial areas are:
If your manufacturing business requires an industrial zone location, your site selection is constrained. This is one reason many foreign investors focus on light manufacturing (31xxx, 32xxx) which can operate in commercial or mixed-use zones.
Can you manufacture products from a villa or residential property in Bali? The answer depends on scale, impact, and local enforcement.
Legally permissible:
Likely to face enforcement:
Risk mitigation: If you start with home-based production, budget for relocation to a commercial or industrial space as you scale. Do not register your home address as your primary business location on official documents — use a coworking space, serviced office, or commercial address as your domicile.
Most manufacturing KBLI codes allow 100% foreign ownership through PT PMA under the Positive Investment List (PP 28/2025). However, the investment thresholds and capital requirements differ from service businesses.
| Business Scale | Minimum Investment (IDR) | Minimum Investment (USD) | Notes |
|---|---|---|---|
| PT PMA (standard) | 10 billion | ~$625,000 | Standard threshold for all PMA |
| Manufacturing PT PMA | 10 billion + facility investment | ~$625,000 + facility | Factory, equipment, working capital separate |
Critical distinction: The IDR 10 billion minimum for PT PMA is the company's capital investment, not the total project cost. For manufacturing, your total project cost includes:
Example: A cosmetics manufacturing startup budgets IDR 15 billion total — IDR 10 billion as PT PMA capital (machinery, initial inventory, cash), and IDR 5 billion for facility lease, permits, and first-year operating costs. The IDR 10 billion satisfies the PMA minimum.
A small number of manufacturing codes have PMA restrictions or require Indonesian partners:
| KBLI Code | Sector | PMA Restriction |
|---|---|---|
| 12xxx | Tobacco Products | Restricted (49% PMA max in some categories) |
| 25200 | Weapons & Ammunition | Prohibited for PMA |
| Defense-related manufacturing | Various codes | Case-by-case BKPM approval |
For the vast majority of foreign investors in Bali's manufacturing landscape (food, cosmetics, garments, furniture, jewelry), there are no PMA restrictions. You can own 100%.
Most foreign-owned manufacturing businesses in Bali do not only manufacture — they also sell their products through retail stores, e-commerce platforms, or wholesale channels. Here is how to structure your KBLI codes to cover the full value chain.
Scenario: You manufacture natural skincare products (20232) and sell them through your own boutique (47xxx) and online store (47911).
KBLI codes to register:
Risk classification: Overall business defaults to Sedang (the highest-risk code registered).
Why this structure matters: Without the retail codes (47911, 47733), you can only sell wholesale to other businesses. Registering retail codes allows you to sell directly to consumers — the higher-margin channel. The downside is increased compliance (three sets of licenses instead of one), but the revenue upside typically justifies it.
Scenario: You manufacture furniture (31001) and export to Australia and Europe. You do not sell retail.
KBLI codes to register:
Why you might not need the wholesale code: If you manufacture exclusively for export under contract (i.e., foreign buyers place orders directly with your factory), you may only need the manufacturing code. The wholesale code becomes relevant if you sell to Indonesian export distributors or trading companies.
Scenario: You own a cosmetics brand but outsource production to a licensed manufacturer (toll manufacturing, also called maklon in Indonesia).
KBLI codes to register:
This is a common error: Foreign entrepreneurs register manufacturing codes because they own a "manufacturing business," but if you do not own or operate the production facility, you are a distributor or retailer, not a manufacturer. Your KBLI codes must reflect your actual activities.
Why manufacture in Bali instead of Java (where most of Indonesia's industrial capacity is concentrated)? Here are the strategic factors.
Skilled artisan workforce — Bali has generations of artisans skilled in woodworking, metalworking, textiles, and handicrafts. For foreign-owned businesses producing artisan-quality products, Bali's labor force is unmatched in Indonesia.
Export logistics — Ngurah Rai International Airport and Benoa Port provide direct export routes to Australia, Asia-Pacific, and Europe. Furniture containers leave Benoa daily. This is faster and cheaper than manufacturing in Java and shipping through Jakarta or Surabaya.
Brand narrative — "Made in Bali" carries premium positioning for wellness, lifestyle, and eco-friendly products. Cosmetics, yoga apparel, furniture, and jewelry benefit from Bali's brand equity.
Quality of life for expat founders — Foreign entrepreneurs prefer living in Bali over industrial areas in Java. Quality of life matters when you are building a manufacturing business from the ground up.
Limited industrial zones — Bali does not have large-scale industrial estates like Java. If your business requires heavy manufacturing infrastructure, Bali is not the optimal location.
Higher operating costs — Electricity, logistics (for inbound raw materials), and real estate costs are higher in Bali than Java. Manufacturing businesses with tight margins may struggle.
Infrastructure limitations — Traffic congestion in Denpasar and South Bali, limited public transportation, and water supply constraints (especially during dry season) create operational challenges.
Small domestic market — Bali's population is 4.3 million. If your business model depends on local sales, you are limited. Most successful manufacturing in Bali is export-oriented or serves Indonesia's national market through e-commerce.
The KBLI 2025 compliance deadline applies equally to manufacturing, retail, and service businesses: June 2026. Here is the manufacturing-specific timeline.
Now through March 2026:
Live OSS monitoring:
Post-window verification:
Manufacturing-specific complication: Because manufacturing often involves product certifications (BPOM, SNI, halal) and environmental permits tied to KBLI codes, the migration is not just an OSS update — you must also update external certifications. Budget time for this.
For the full KBLI 2025 migration strategy, see our guide on KBLI 2025 OSS Transition Update.
Bali's sweet spot is light manufacturing. Furniture (31xxx), jewelry (32101), cosmetics (20231-20232), garments (14111), and food processing (10xxx) align with Bali's artisan workforce, export logistics, and brand positioning. Heavy manufacturing (chemicals, metals, machinery) should be located in Java.
SNI is mandatory for domestic sales, optional for export. If your business model is export-only, you avoid SNI certification complexity. If you plan to sell domestically, budget for SNI compliance from day one.
Environmental permits take time. AMDAL can take 6-12 months. UKL-UPL takes 2-4 months. Do not underestimate this in your timeline.
Most manufacturing codes allow 100% PMA. Tobacco (12xxx) and defense-related sectors are the main exceptions. Food, cosmetics, garments, furniture, jewelry — all fully open to foreign ownership.
Combine manufacturing with retail codes for vertical integration. If you sell your own products, register both manufacturing (10xxx-33xxx) and retail (47xxx) codes on your NIB. The compliance complexity is worth the revenue upside.
Industrial zone requirements vary by scale. Light manufacturing can operate in commercial zones. Heavy manufacturing must be in designated kawasan industri. Know your constraints before signing a lease.
Toll manufacturing changes your KBLI codes. If you outsource production, you are a distributor, not a manufacturer. Register wholesale or retail codes, not manufacturing codes.
Bali Zero provides end-to-end KBLI classification, NIB registration, SNI/BPOM coordination, and environmental permit processing for foreign-owned manufacturing businesses in Bali. Whether you are launching a cosmetics line, opening a furniture workshop, or scaling a garment export operation, our team handles the compliance so you can focus on production.
Contact Bali Zero for a free manufacturing KBLI consultation or explore our KBLI Navigator tool to search all 2,170 KBLI 2025 codes instantly.