Replacing Indonesia KBLI 2020 with KBLI 2025 for Business: What Companies Need to Know
Replacing Indonesia KBLI 2020 with KBLI 2025 for Business: What Companies Need to Know

Replacing Indonesia KBLI 2020 with KBLI 2025 for Business: What Companies Need to Know

Indonesia has officially replaced KBLI 2020 with KBLI 2025 (Klasifikasi Baku Lapangan Usaha Indonesia) for business licensing, introducing significant changes that affect company registration, licensing, and regulatory compliance. Effective 15 June 2026, all new business registrations and certain corporate amendments submitted through the Directorate General of General Legal Administration (AHU) and the Online Single Submission (OSS) official system must use the latest kode KBLI.

For businesses planning a company setup, expanding operations, or updating their corporate information, understanding the new KBLI Indonesia framework has become an important compliance obligation.

What is Klasifikasi Baku Lapangan Usaha Indonesia (KBLI)?

Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) is Indonesia’s official classification system for economic and commercial activities published by BPS (Statistics Indonesia). It provides the definition and classification of every recognized specific business activity operating in Indonesia.

Each business is assigned one or more KBLI 5 digit classifications that describe the exact scope of its business activities. These classifications are used throughout the company registration, licensing, taxation, statistical reporting, and investment approval processes.

Selecting the correct KBLI code is one of the most important steps during the incorporation and setup process of a company. Whether establishing a local company (PT) or a PT PMA, businesses must carefully choose the most appropriate selected KBLI that accurately reflects their intended operations.

Although businesses may register multiple business activities under one legal entity where permitted, every activity must correspond to the appropriate kode KBLI. Careful KBLI selection helps avoid licensing issues, unnecessary amendments, and future regulatory complications.

Who Must Use KBLI 2025?

Starting from 15 June 2026, KBLI 2025 is mandatory for all new business establishments and specific corporate amendments.

The requirement applies to:

  • Limited Liability Companies (PT & PT PMA)
  • Individual Limited Liability Companies
  • Cooperatives
  • Civil Partnerships
  • Firms (Firma)
  • Limited Partnerships (CV)

Businesses must also adopt KBLI 2025 when submitting applications for:

  • Amendments to the Articles of Association
  • Changes to company objectives
  • Changes in business activities
  • Updates to legal company data

Companies intending to modify their legal information should review their existing KBLI Indonesia classifications before submitting any application through the AHU and OSS systems.

Why Has Indonesia Updated KBLI?

The Indonesian Government updated KBLI to better reflect today’s economic landscape while supporting a more efficient risk-based licensing framework.

The revision aims to:

  • Reflect the growth of digital and technology-driven industries
  • Provide greater legal certainty for businesses
  • Improve licensing efficiency
  • Reduce overlapping classifications
  • Strengthen Indonesia’s investment climate
  • Align Indonesia’s economic classifications with International Standard Industrial Classification (ISIC) Revision 5

The update also provides more accurate classifications for rapidly evolving sectors that previously lacked dedicated business codes.

New Business Activities Introduced Under KBLI 2025

One of the most significant changes under KBLI 2025 is the recognition of several emerging industries.

Newly classified activities include:

  • Digital platform intermediation services
  • Artificial Intelligence (AI) development
  • Content creators and digital streaming services
  • Cryptocurrency trading
  • Carbon credit trading
  • Carbon capture
  • Carbon storage
  • Factoryless Goods Producers (FGP)

For example, many online marketplace businesses previously operated under general web portal classifications. Under KBLI 2025, these businesses now receive more specific classifications based on the sector they facilitate, improving licensing accuracy and regulatory oversight.

Updated KBLI Structure

Although the overall framework remains hierarchical, several structural changes have been introduced.

Compared with KBLI 2020:

  • Business categories increased from 21 to 22
  • Principal groups changed from 88 to 87
  • Three-digit groups increased from 245 to 257
  • Four-digit subgroups decreased from 567 to 519
  • Five-digit classifications were streamlined from 1,789 to 1,560

Many business descriptions have also been revised to better accommodate digital businesses, creative industries, online platforms, and technology-driven services.

Automatic and Manual KBLI Adjustments

The Government has introduced two mechanisms for implementing KBLI 2025.

Some KBLI code adjustments will occur automatically through system integration between AHU and OSS.

However, companies applying for amendments to their Articles of Association, company objectives, or specific business activity must manually update their selected KBLI 5 digit classifications during the application process.

Businesses should therefore review all corporate data and licensing documents before making any amendments.

Potential Impact on Tax Administration

Beyond licensing, KBLI 2025 may also affect a company’s Business Field Classification (KLU) used for tax administration.

Businesses should ensure that information across AHU, OSS, and the Directorate General of Taxes remains consistent to minimise discrepancies during future compliance reviews.

How KBLI Affects PT PMA Company Registration

Foreign investors establishing a PT PMA should pay particular attention to their KBLI selection, as the selected KBLI code determines licensing requirements, investment restrictions, and sector-specific approvals.

Choosing the wrong kode KBLI may delay the incorporation process, require amendments after establishment, or affect business licensing eligibility. Depending on the intended operations, companies may also register multiple business activities under one entity where permitted by applicable regulations.

Because each selected KBLI determines the legal scope of a company’s operations, careful planning during the company setup process is essential for a smooth market entry into Indonesia.

How LMI Consultancy Can Assist

Understanding the latest KBLI Indonesia requirements can be challenging, particularly for foreign investors and companies entering the Indonesian market.

At LMI Consultancy, we provide comprehensive assistance throughout the entire company setup and company registration process, including reviewing your proposed business activities, recommending the most appropriate KBLI 5 digit classifications, preparing the required document submissions, and assisting with AHU and OSS applications.

Whether you are establishing a PT PMA, expanding your operations, changing your corporate objectives, or updating your business licences under KBLI 2025, our experienced consultants can help ensure your business remains compliant with Indonesia’s evolving regulatory framework.

Please note that while we assist clients in selecting the most appropriate KBLI code based on their intended operations, the final approval of business classifications remains subject to the relevant Indonesian authorities. LMI Consultancy provides professional guidance based on prevailing regulations but makes no representation or warranties regarding government decisions or future regulatory interpretations.

Contact LMI Consultancy today for expert guidance on your KBLI selection and business incorporation in Indonesia.

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