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Management Consultancy Business in Indonesia

“KBLI 2020 has classified management consultancy business activity in category “702” which cover advice activity, instruction and operational assistance for business or organization in various management issues.”

Management consultancy business is one of the economic activities that classified in Regulation of Indonesian Central Bureau Statistic No. 2 of 2020 on Standard Indonesian Business Field Classifications (“Klasifikasi Baku Lapangan Usaha Indonesia” or “KBLI 2020”). The KBLI 2020 has classified management consultancy business activity in category “702” which cover advice activity, instruction and operational assistance for business or organization in various management issues.

General Definition of Management Consultancy

According to KBLI 2020, management consultancy has specific sub-category in code “7020”. This sub-category includes providing assistance, advice, guidance and business operation, organizational, and other management issues, such as strategic and organizational planning; finance-related decision; marketing objective and policy; human resource planning and policy; production schedule planning and controlling.

Furthermore, the business service may include assistance with advice, guidance and operational assistance of business and service community regarding public relation, public or general communication, lobbying activity, design of accounting method and procedure, accounting cost program, budgeting supervision, providing advice and assistance for business and public service in planning, organizing, efficiency and supervision, management information, etc.

Nevertheless, the sub-category has not covered several activities, as follow:

  1. Software design for accounting system;
  2. Legal advice and representative;
  3. Accounting, bookkeeping and examination, tax consultancy;
  4. Architecture, mechanical engineering and other mechanical reports;
  5. Advertising;
  6. Marketing research and public opinion polls;
  7. Search and exclusive placement consultancy; and
  8. Educational consultancy.

Types of Management Consultancy Business

In accordance with KBLI 2020, the types of management consultancy business consist of:

  1. Tourism Consultancy

The tourism consultancy is regarded as code “70201”. This business field includes in tourism business license.

  • Transportation Consultancy

The transportation consultancy is regarded as code “70202”. This business field includes in general trade business license.

  • Public Relation Consultancy

The public relation consultancy is regarded as code “70203”. This business field includes in general trade business license.

  • Industry Management Consultancy

The industry management consultancy is regarded as code “70204”. This business field is a new update to the code “70204”, as previously regarded into investment and futures consultancy in KBLI 2017.

  • Other Management Consultancy

The other management consultancy is regarded as code “70209”. This business field includes in general trade business license.

Limitation of Foreign Investment

According to Presidential Regulation No. 44 of 2016 on Negative Investment List (“Daftar Negatif Investasi” or “DNI 2016”), the types of management consultancy business above are not listed in DNI 2016. The business activity that not listed in DNI 2016 is regarded as the openly-business field without conditions and foreign investment is allowed without limitation.

However, the updated negative investment list will be further promulgated by the government. Therefore, there is a possibility that current foreign limitation which stipulated in DNI 2016 can be changed as an adjustment of KBLI 2020 and Omnibus Law.

Author: Kristalia Andiani Puteri

Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas include Business Law

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+62- 21 2271 8638  | +62 – 811 877 216 |  info@gaffarcolaw.com | www.gaffarcolaw.com

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