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Understanding Indonesia’s KBLI 2025 Transition: What Businesses Need to Know

Indonesia will implement KBLI 2025 through the Online Single Submission Risk-Based Licensing (OSS RBA) system and the Ministry of Law’s General Legal Administration (AHU) system beginning June 15, 2026. The update represents the most significant revision to Indonesia’s business classification framework since the introduction of KBLI 2020 and will affect how business activities are classified for licensing and registration purposes.

Need help reviewing your KBLI classifications? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com

While most businesses are expected to transition automatically, companies planning future licensing applications, business expansion projects, OSS updates, corporate transactions, or new investments should understand how the new framework may affect their activities after June 15, 2026.

According to the joint circular referenced by the Directorate General of AHU, adjustments within the OSS and AHU systems are scheduled to be completed no later than June 18, 2026.

Which Businesses Are Most Likely to Be Affected?

Businesses that continue to use KBLI 2017 or earlier classifications are likely to face the greatest level of review because these classifications cannot be automatically converted to KBLI 2025.

Companies that have not updated their classifications since KBLI 2020 was introduced may need to take additional administrative steps before future licensing transactions can proceed.

Businesses operating under multiple KBLI classifications may face additional complexity if one or more classifications have been revised under the new framework.

Foreign investors establishing new PT PMAs after implementation should also pay close attention to the new framework. New companies established after June 15, 2026, will be required to use KBLI 2025 classifications when registering business activities and applying for licenses.

When Existing Businesses May Review Their KBLI Position

KBLI 2025 does not automatically require companies to amend their corporate records or licensing registrations. However, certain business activities may trigger a review of existing classifications.

A review may also be advisable when adding new business activities. A company that originally operated within a narrow business scope may later expand into related products or services. Before obtaining the necessary approvals, the business should confirm that its existing classifications remain suitable for the expanded scope of operations.

Updates to OSS registration data may create similar considerations. Businesses that have not reviewed their registrations for several years may discover that certain classifications have changed under the new framework and require clarification before administrative transactions can be completed.

Corporate transactions can create additional review requirements. Investors acquiring an existing Indonesian company may wish to assess whether the target company’s classifications remain aligned with current operations and future licensing objectives, particularly if the company continues to use classifications that predate KBLI 2020.

What Happens If Your Company Still Uses KBLI 2017?

Businesses that continue to use KBLI 2017 classifications face one of the most significant transition issues under KBLI 2025.

Planning a licensing application or business expansion in Indonesia? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com

According to data presented by the Directorate General of AHU, approximately 41.75 percent of corporations continue to use older KBLI classifications from 2017, 2015, or 2009, while 58.25 percent already use KBLI 2020.

This distinction is important because the AHU implementation framework indicates that KBLI 2020 classifications can be converted through the KBLI 2025 conversion process, whereas KBLI 2017 classifications cannot be converted automatically and require further adjustment through the AHU system.

Businesses operating under older classifications may need to review and update their registration data.

How Existing KBLI Codes Will Be Converted

The level of review required under KBLI 2025 often depends on how an existing classification corresponds to the new framework.

In some cases, an existing classification will convert directly to a single KBLI 2025 code. These one-to-one conversions are generally straightforward and unlikely to create significant administrative complications because the business activity remains substantially unchanged. AHU describes these changes as revisions to the code, title, description, or a combination of these elements based on the adoption of ISIC Rev. 5.

Other classifications may be consolidated into a single KBLI 2025 category. These many-to-one conversions occur when several existing KBLI classifications are merged into one classification and typically have limited practical impact, provided the resulting classification continues to accurately reflect the company’s activities.

Greater attention may be required where a single existing classification has been divided into multiple KBLI 2025 classifications. These one-to-many conversions may require businesses to determine which new classification most accurately reflects their activities before applying for additional licenses, expanding operations, or updating OSS registrations.

For example, a company operating under a classification that is later divided into multiple KBLI 2025 codes may not encounter any immediate issues. However, a future licensing application or expansion project may require the company to determine which new classification most accurately reflects its activities before the process can proceed.

A Practical KBLI 2025 Review Checklist

Before submitting a licensing application or commencing an expansion project, businesses should confirm that their existing registrations remain aligned with their plans under KBLI 2025.

Unsure how KBLI 2025 may affect your business? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com

A business may find that planned activities, regulated services, or new business lines fall outside its current classifications, requiring updates before licenses can be obtained or additional activities can commence.

How MAP Resources Indonesia Can Help with KBLI 2025 Compliance

MAP Resources Indonesia assists foreign and domestic businesses with KBLI reviews, company establishment, OSS licensing, business expansion planning, and regulatory compliance in Indonesia. If you are unsure whether your current classifications align with KBLI 2025, contact us at info@mapresourcesindonesia.com for professional support.

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