New Chapter in the Implementation of Risk-Based Business Licensing
The Government of Indonesia has enacted Government Regulation No. 28 of 2025, which revokes Government Regulation No. 5 of 2021.
Overview
Regulation of the Central Statistics Agency (“BPS”) No. 7 of 2025 on the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) (“BPS Regulation 7/2025”) introduces the 2025 KBLI (“KBLI 2025”) and replaces KBLI 2020.
Following the issuance of BPS Regulation 7/2025 and the subsequent issuance of a joint circular letter by the Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM), the Ministry of Law, and the Head of BPS, the Directorate General of General Legal Administration of the Ministry of Law (“AHU”) online system and the Online Single Submission (“OSS”) system began applying KBLI 2025 from 15 June 2026.
Key Notes
Particular attention should be given to one-to-many conversions, where a single KBLI 2020 code may correspond to several KBLI 2025 codes. In such circumstances, the business actor should identify and select the KBLI 2025 code(s) that accurately reflect the business activities actually conducted.
Where a corporate action amends or otherwise substantively changes the company’s purposes, objectives, or business activities, the relevant corporate documentation and AHU filing should reflect the applicable KBLI 2025 code before the corresponding OSS data are aligned.
Because the applicable KBLI code and scope of business activity are relevant in determining the risk classification and licensing requirements through the OSS system, the conversion to KBLI 2025 may affect the requirements applicable to a particular business activity. Businesses should therefore assess each activity against the current OSS requirements and the applicable regulations, standards, and implementation guidance of the relevant sectoral authority.
Closing
The implementation of KBLI 2025 is an important development in Indonesia’s business-classification and licensing system. Although the Government has introduced conversion mechanisms intended to facilitate the transition and preserve the validity of existing licenses, business actors should reconcile their existing KBLI codes against their corporate documents, AHU data, OSS records, and sector-specific licensing records to determine whether any further action is required.
Particular attention should be given to one-to-many conversions and legacy codes predating KBLI 2020, which may require manual selection of the appropriate successor code or prior updating of AHU data before the relevant OSS process can proceed. Businesses should also continue to monitor current sector-specific implementation requirements applicable to their activities.
For more information or inquiries, please contact:
Andika Mendrofa at andika.mendrofa@nusaadvocates.com
Shanti Prameshwara at shanti.prameshwara@nusaadvocates.com
Sharon Solomon at sharon.solomon@nusaadvocates.com
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