Indonesia's New Business Classification Regulation (KBLI 2025): Companies Must Update Licensing Data by June

The Indonesian Central Statistics Agency (BPS) has officially issued Regulation No. 7 of 2025, implementing the 2025 Indonesian Standard Classification of Business Fields (KBLI 2025).

Effective as of December 18, 2025, this new framework replaces the 2020 version and introduces critical changes to how businesses are categorized, licensed, and regulated in Indonesia.

Crucially, all business entities—including PT PMAs, local PTs, and Representative Offices—must align their registrations with the new codes by given deadline.

Mandatory Transition Period Ends June 18, 2026

As per the new regulation, businesses have a six-month grace period ending on June 18, 2026, to update their data in the Online Single Submission (OSS) system.

Failure to transition by this deadline may result in:

• OSS Invalidation: Existing Business Identification Numbers (NIB) may become flagged or inactive.
• Licensing Blocks: Inability to apply for new sectoral licenses or import approvals.
• Compliance Audits: Mismatches between actual activities and registered KBLI codes are a primary trigger for investment realization audits.

New Classification Structure Expands to 22 Business Categories

The 2025 KBLI expands the classification system to 22 Categories (up from 21), aligning Indonesia with the global ISIC Revision 5 standard. This update is specifically designed to capture modern business models that were previously undefined or forced into "grey areas."

1. The Split of Information & Communication

One of the most significant changes is the restructuring of the digital sector. The previous broad category has been split to distinguish between content and infrastructure:

• Category J: Publishing, Broadcasting, and Content Production (Media-focused).
• Category K: Telecommunications, Software Development, and IT Consultancy (Tech-focused).

Tech companies must carefully review their classification, as this split may affect foreign ownership limits and specific ministry jurisdiction (e.g., Ministry of Communication vs. Ministry of Tourism/Creative Economy).

2. Official Recognition of Digital Intermediaries

Platforms that facilitate transactions without owning the underlying inventory now have dedicated codes. This covers:

• Marketplaces (e-commerce).
• Hospitality and Accommodation platforms.
• Healthcare and EdTech intermediaries.

3. Factoryless Goods Producers (FGP) Now Recognized as Manufacturers

Companies that design and brand products but outsource the physical manufacturing to third parties are now explicitly recognized under Manufacturing (Category C).

This is a major win for lifestyle brands and consumer goods companies, allowing them to register as producers (with associated benefits) without needing to own a physical factory.

4. New Regulated Sectors: AI, Crypto, and Carbon

The new KBLI provides specific codes for emerging high-value sectors, bringing them fully into the regulatory fold:

• Artificial Intelligence: AI-based software publishing and autonomous system development.
• Crypto-Assets: Distinct codes for trading on own account, exchanges, and brokerage.
• Carbon Markets: Specific classifications for Carbon Capture, Storage (CCS), and Carbon Credit Trading, aligning with Indonesia's new carbon exchange regulations.

Steps to Ensure Compliance Before the June Deadline

The automatic mapping in OSS is not guaranteed to be risk-free. We advise all clients to take the following steps before the June deadline:

1. Conduct a Gap Analysis: Compare your current KBLI 2020 codes against the new KBLI 2025 definitions to identify shifts in risk levels or business scope.
2. Verify OSS Profiles: Log in to the OSS system to check for any automatic notifications or "unverified" status flags on your current projects.
3. Prepare for Amendments: If your core business activity has been reclassified (especially in Tech, F&B, or Retail), prepare to submit an amendment to your NIB.

Contact our corporate compliance team for a KBLI migration assessment to ensure your licenses remain valid and fully operational under the new 2025 framework.