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KBLI 2025 Explained: Key Changes from KBLI 2020 and What Businesses Need to Know

KBLI 2025 Explained: Key Changes from KBLI 2020 and What Businesses Need to Know
Indonesia has officially updated its national business classification system. In December 2025, the Central Bureau of Statistics (BPS) issued Regulation No. 7 of 2025, introducing the latest version of the Klasifikasi Baku Lapangan Usaha Indonesia (KBLI 2025).
For companies operating in Indonesia — whether local businesses, foreign investors, or startups registering through the Online Single Submission (OSS) system — this update matters more than many realize. KBLI codes determine how a business is classified in the national economic system and can influence licensing, compliance requirements, and even regulatory oversight.
So what exactly changed with KBLI 2025, and what should businesses pay attention to?
Let’s break it down.
What is KBLI? The Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) is Indonesia’s official classification system for economic activities. It categorizes businesses based on the type of activity they perform.
Every company in Indonesia must select KBLI codes when registering their business. These codes are used across multiple government systems, including:
  • Business licensing through OSS
  • Statistical data collection by the Central Bureau of Statistics
  • Economic sector analysis
  • Regulatory supervision
  • Investment and industry policy
In practice, KBLI acts as the “identity of a business activity” within Indonesia’s regulatory framework. Why Was KBLI Updated? KBLI is periodically updated to reflect changes in the economy and emerging industries. According to the regulation, the KBLI 2025 update was introduced to:
  • Align Indonesia’s classification system with International Standard Industrial Classification (ISIC) Revision 5
  • Reflect new and evolving economic activities
  • Replace the previous KBLI 2020 regulation, which is now revoked.
This update ensures that Indonesia’s economic data and business classifications remain consistent with global standards. Key Changes in KBLI 2025 While the general structure of KBLI remains similar, the 2025 version introduces several notable updates. 1. Alignment with International Industry Standards One of the most important changes is the adjustment of the classification system to match ISIC Revision 5, the international standard used by many countries to categorize economic activities.
This alignment improves comparability between Indonesia’s economic data and global economic statistics.
For businesses, this may also mean changes in how certain activities are categorized compared to the previous KBLI 2020 structure.
2. Updates to Business Activity Classifications KBLI 2025 refines many categories to better reflect real-world economic activities.
For example:
Beverage Manufacturing Sector
The updated KBLI includes specific classifications such as:
  • 11051 – Bottled Drinking Water Industry
  • 11052 – Refillable Drinking Water Industry
These classifications cover activities involving the processing of raw water into packaged drinking water or refillable drinking water services.
Legal and Professional Services
Professional service activities are also clearly defined in KBLI 2025, including:
  • 69101 – Legal Practice / Lawyers
  • 69102 – Legal Consultancy
  • 69103 – Intellectual Property Consultancy
These classifications include activities such as legal representation, preparation of legal documents, and intellectual property services. Infrastructure and Construction The updated KBLI also categorizes specialized construction activities, such as:
  • Oil and gas infrastructure construction
  • Mining facility construction
  • Sports facility construction
  • Industrial processing facility construction
Each activity is assigned a specific classification within the construction sector. Understanding the KBLI Structure KBLI follows a hierarchical classification system. Business activities are categorized into several levels: 1. Category (Alphabet Letter)
Represents the main economic sector.
Examples include:
  • A – Agriculture, Forestry, and Fisheries
  • H – Transportation and Storage
  • K – Telecommunications and Information Services
  • N – Professional, Scientific, and Technical Activities
  • R – Arts, Entertainment, and Recreation
2. Group and Subgroup
These levels narrow down the sector into more specific activities.
3. Five-Digit KBLI Code
This represents the most specific classification of a business activity.
When registering a company, businesses typically select one primary KBLI code and additional supporting codes if necessary.
Transition Period for Businesses The regulation also introduces a transition period.
All institutions and users of KBLI classifications are required to adjust to KBLI 2025 within six months after the regulation was issued.
During this period:
  • Existing businesses may need to review their KBLI codes
  • Government systems will gradually transition to the updated classification
  • New business registrations will increasingly refer to KBLI 2025
Why This Update Matters for Businesses Although KBLI may appear administrative, it plays a crucial role in business operations.
Choosing the correct KBLI code can affect:
  • Business licensing eligibility
  • Sector-specific regulations
  • Investment classifications
  • Compliance requirements
For foreign investors in particular, the KBLI code often determines which sectors are open for investment and which require special permits. Final Thoughts KBLI 2025 represents Indonesia’s effort to modernize its economic classification system and align it with global standards. While the changes may seem technical, they can have practical implications for businesses registering, expanding, or restructuring their operations in Indonesia.
For companies operating in Indonesia, now is a good time to review existing business classifications and ensure that their activities remain properly aligned with the updated KBLI framework.
Staying compliant with these updates helps avoid regulatory issues and ensures that business licenses accurately reflect operational activities.

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