Limestone Trading Business License and its KBLI Code

PERTANYAAN

My company (metallic mineral mining) intends to buy limestone from a limited company (for example A. Ltd). What are the requirements for the limited company in order to sell/supply limestone to our company?

INTISARI JAWABAN

In order to find out what business requirements are mandatory for Limited Company A (“A Ltd.”) in order to be able to carry out its business activities, namely limestone trading, you first need to know the level of business risk. In Indonesia, risk-based business licensing is currently applicable.

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Izin Usaha dan Kode KBLI Perdagangan Batu Kapur which was written by Bernadetha Aurelia Oktavira and was published on Monday, 15 August 2022.

All legal informations which are available through Klinik hukumonline.com have been prepared for educational purposes only and are general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

Limestone Trading Code according to KBLI

Formerly, it is important to note that according to our research, the limestone in question is also referred to as batu gamping or also known as chemical sedimentary rock, as it is referred to in the Kamus Besar Bahasa Indonesia (“KBBI”) or Indonesian official dictionary.

Based on the Appendix to Statistics Indonesia Regulation 2/2020, the limestone trade is registered with the code 46641 according to Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia/ “KBLI”), which is a wholesale trade business sector, thus it cannot be carried out simultaneously with the retail trade business sector.

Currently, Indonesia has implemented risk-based business licensing, which is classified into low, medium-low, medium-high, and high-risk levels. For more details, you can read the explanation in Risk-Based Licensing, Here is the Explanation.

Furthermore, Appendix II – Energy and Mineral Resources Sector to Government Regulation 5/2021 stipulates that the KBLI code 46641 is categorized as high-risk business and medium-low environmental risk.

Limestone Trading Business License

What licenses are required? Business licensing for this business activity is in the form of a Business Identification Number (Nomor Induk Usaha/ "NIB") and license, namely the approval of the central government or regional government for the implementation of business activities which must be fulfilled by business actors prior to carrying out their business activities.[1]

Prior to obtaining a license, business actors may use their NIB for the preparation of business activities. However, NIB and licenses are business permits for business actors to conduct operational and/or commercial activities.[2]

Therefore, before engaging in any sale and purchase of limestone or chemical sedimentary rock with A Ltd., the company needs to ensure that A Ltd. has fulfilled the high-risk business licensing under KBLI code 46641, namely in possession of an NIB and a license.

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These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Government Regulation Number 5 of 2021 on the Implementation of Risk-Based Business Licensing;
2. Statistics Indonesia Regulation Number 2 of 2020 on Indonesian Standard Industrial Classification.

Reference:

1. Gamping, accessed on 12 August 2022, at 21.00 Central Indonesia Time (zone);
2. KBLI 46641, accessed on 12 August 2022, at 21.30 Central Indonesia Time (zone).

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[1] Article 15 Section (1) jo. Article 16 Section (2)  Government Regulation Number 5 of 2021 on the Implementation of Risk-Based Business Licensing (“Government Regulation 5/2021”).

[2] Article 15 Section (4) Government Regulation 5/2021.