Indonesia – KBLI Classification Update 2025

Indonesia has introduced a comprehensive update to its national business classification system with the release of the 2025 KBLI (Klasifikasi Baku Lapangan Usaha Indonesia), the Indonesian Business Classification.

Published by the Central Statistics Agency (BPS) on the 19^th of December 2025, the new KBLI aligns with global economic developments and international classification standards.

The updated structure expands to 22 categories (A–V) and includes:

• 87 divisions
• 257 groups
• 519 classes
• 1,560 business activities

The KBLI assigns standardized five-digit codes to all registered business activities in Indonesia and serves as the basis for licensing, risk assessment, investment restrictions, and compliance requirements.

Purpose of the Update

The 2025 KBLI reflects major structural changes in the economy, including:

• Rapid digital transformation
• Growth of modern and hybrid business models
• Increasing emphasis on the green economy and climate‑related activities

Who Must Comply?

All companies operating in Indonesia, including foreign-owned entities, must transition to the 2025 KBLI.

Deadlines and Required Actions

Companies must complete their KBLI review and updates by the 17^th of June 2026.

Important: The government will not automatically update KBLI codes. Existing codes will remain active unless companies take action, which may lead to compliance issues.

Required Steps

Companies must:

• Review existing KBLI codes
• Compare current codes against the 2025 classifications
• Confirm whether updates are needed
• Document their internal review, even if no changes are required
• Proceed with amendments where applicable (licences, permits, OSS system updates, Articles of Association)

Additional Requirements for Foreign-Owned Companies

Foreign-owned companies must also:

• Check revised KBLI codes against the current Investment List
• Verify foreign‑ownership limitations under the new classifications
• Assess any impact on investment structure or required approvals

Risks of Non-Compliance

Failure to align with the 2025 KBLI may result in:

Legal and Operational Risks

• Delays in business registration or NIB (Business Registration Number) issuance
• Disruption to operational licences
• Regulatory sanctions
• Misalignment between business activities and permitted licences

Licensing and Risk Assessment Issues

• Incorrect risk categorisation (low/medium/high)
• Missed or unnecessary inspections
• Delayed approvals
• Increased compliance exposure

Investment-Related Restrictions

• Breach of foreign shareholding limits
• Loss of investment incentives
• Unintended activity restrictions
• Complications in partnership requirements

How Mercator® by Citco (Mercator) Can Help

Mercator can assist with KBLI analysis and selection, OSS system updates, NIB issuance, licence amendments, and corporate document updates, including Articles of Association. For assistance, please contact mercator@citco.com