The Government of Indonesia has officially issued the Indonesian Standard Industrial Classification (KBLI) 2025. KBLI serves as the official standard for classifying business activities in Indonesia and has now been aligned with the International Standard Industrial Classification of All Economic Activities (ISIC), Revision 5.
The issuance of KBLI 2025 may have implications for a company’s registered business activities, including the potential need to adjust its Articles of Association and business licenses.
What Is ISIC?
The International Standard Industrial Classification of All Economic Activities (ISIC) is an international standard developed by the United Nations Statistics Division (UNSD) to systematically classify all economic activities on a global basis.
What Is the Difference Between ISIC and KBLI 2025?
ISIC applies a 4-digit classification structure, consisting of:
- Section: 1 digit
- Division: 2 digits
- Group: 3 digits
- Class: 4 digits
Meanwhile, KBLI 2025 adopts a 5-digit classification structure, as follows:
- Category: 1 digit
- Main Group: 2 digits
- Group: 3 digits
- Subgroup: 4 digits
- Class: 5 digits
What Changes Are Introduced Under KBLI 2025?
KBLI 2025 introduces several changes to the classification of business activities, including:
- Code Splitting: Creation of new codes resulting from the division of existing codes (one-to-many).
- Code Merging: Consolidation of existing codes or activity scopes into a single new code (many-to-one).
- Changes in Titles or Descriptions: Revisions to nomenclature, descriptions, or examples to clarify the scope of business activities.
- Code Reassignment: Transfer of a business activity from one category, main group, group, or subgroup to another.
- Recoding: Reclassification within the same category, main group, or group due to structural changes, without changes to the title, description, or activity scope.
- New Codes or Scopes: Introduction of new business activity codes or scopes that did not previously exist.
- Scope Consolidation: Integration of certain activity scopes into existing codes.
- Code Deletion: Removal of specific business activity codes or scopes.
How Does KBLI 2025 Affect Business Licensing?
KBLI codes consisting of five (5) digits are used as the basis for determining:
- Business risk levels; and
- Applicable standards, norms, and licensing requirements.
Indonesia’s business licensing regime currently adopts a risk-based approach, where each KBLI code is assigned a specific risk level that determines the type of business license required.
Relationship Between KBLI 2025, OSS, and SABH
Business licensing in Indonesia is conducted electronically through the Online Single Submission (OSS) system. The OSS system is integrated with the Legal Entity Administration System (SABH).
At present, both OSS and SABH still refer to KBLI 2020. However, it is expected that these systems will be updated in the future to accommodate KBLI 2025.
Key Points for Business Actors to Note
Business actors should carefully assess:
- Whether the KBLI codes currently used for their business licenses are affected by changes introduced under KBLI 2025; and
- The potential need to update registered business activities and amend the Articles of Association.
While awaiting further regulations or implementing guidelines from the Government, it remains important to monitor whether a mandatory transition from KBLI 2020 to KBLI 2025 will be required.