Indonesia’s KBLI 2025 Transition: Understanding the New Business Classification Framework

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.

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For most businesses, the transition is expected to occur automatically through conversion mechanisms built into the OSS and AHU systems. The practical impact will depend on how existing KBLI classifications correspond to the new KBLI 2025 framework.

Why is Indonesia introducing KBLI 2025?

KBLI 2025 updates Indonesia’s industrial classification framework to align with the Fifth Revision of the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 5). The revision also reflects changes in Indonesia’s economy and introduces new classifications for emerging business activities.

The update has resulted in significant changes to the structure of Indonesia’s business classification system.

As a result, many existing KBLI codes have been merged, split, renumbered, or revised. While these changes are largely administrative, they may affect how businesses are classified within Indonesia’s licensing framework going forward.

How existing KBLI codes will be converted

The transition from KBLI 2020 to KBLI 2025 will be implemented through conversion mechanisms integrated into the OSS and AHU systems. The outcome of the conversion depends on how an existing classification corresponds to the new KBLI 2025 framework.

One-to-one conversion

A one-to-one conversion occurs when an existing KBLI classification corresponds directly to a single KBLI 2025 classification. In most cases, these conversions involve changes to code numbers, titles, descriptions, or other administrative adjustments without materially changing the underlying business activity.

Where the substance of the business activity remains unchanged, the conversion is generally expected to occur automatically through the OSS and AHU systems.

Many-to-one conversion

A many-to-one conversion occurs when several KBLI 2020 classifications are consolidated into a single KBLI 2025 classification.

For most businesses, the practical impact of these conversions is limited, provided the new classification continues to accurately reflect the company’s activities. In many cases, the transition can proceed automatically because the underlying business activity remains substantially unchanged.

One-to-many conversion

A one-to-many conversion occurs when a single KBLI 2020 classification is divided into multiple KBLI 2025 classifications.

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These scenarios are more likely to require business review because the system may not be able to determine automatically which new classification best reflects the company’s activities. Businesses affected by one-to-many conversions may therefore need to review the available classifications and select the most appropriate business scope.

How KBLI 2025 could affect future licensing applications

While KBLI 2025 is designed to transition most businesses automatically, its practical impact is likely to emerge when businesses apply for new licenses, add business activities, expand operations, or establish new entities after implementation. In these situations, businesses may need to verify that their existing classifications correspond to the relevant KBLI 2025 categories before the licensing process can proceed.

A company currently operating under a KBLI 2020 classification that is divided into multiple KBLI 2025 codes may be required to select the classification that best reflects its activities before applying for an additional business license. By contrast, a company whose classification is subject to a one-to-one conversion is likely to transition automatically with little operational impact.

Similarly, businesses that continue to use pre-KBLI 2020 classifications may need to update their registration data before undertaking licensing transactions that rely on KBLI 2025 classifications.

As a result, businesses planning future expansion projects, new licensing applications, or changes to their operational scope may benefit from reviewing their existing classifications before initiating the relevant process.

What happens to companies still using pre-KBLI 2020 classifications?

One of the most significant aspects of the transition concerns businesses that have not yet migrated to KBLI 2020.

According to data presented by the Directorate General of AHU, approximately 3.1 million corporations currently use KBLI classifications in their corporate and licensing records. Of these, 58.25 percent already use KBLI 2020 classifications, while 41.75 percent continue to operate using older KBLI versions, including KBLI 2017 and earlier frameworks. This means a substantial number of businesses may still need to update their classifications before fully transitioning to KBLI 2025.

According to BKPM and AHU guidance, classifications predating KBLI 2020 cannot be automatically converted to KBLI 2025. Instead, these businesses must first update their registration data before KBLI 2025 can be applied.

The AHU implementation framework indicates that businesses using older classifications will be identified through the system and required to update their information before the transition can be completed. Companies that have not reviewed their classifications since the introduction of KBLI 2020 may therefore face additional administrative steps compared to businesses already using the current framework.

Will existing licenses remain valid?

One of the most important features of the transition is that existing business licenses, basic requirements, and supporting approvals issued before KBLI 2025 takes effect will remain valid.

Businesses are therefore not required to reapply for existing approvals solely because of the introduction of KBLI 2025.

Where the transition only involves an administrative conversion and does not alter the underlying business activity, the adjustment is expected to occur automatically through the OSS and AHU systems. This approach is intended to reduce administrative burdens while maintaining continuity for existing businesses.

What KBLI 2025 means for new investors

Starting June 15, 2026, newly established companies will be required to use KBLI 2025 when registering business activities through the AHU and OSS systems.

This makes KBLI selection an important consideration during investment planning and company establishment. Because many classifications have been merged, divided, renumbered, or redefined, investors should confirm the appropriate KBLI classifications before preparing incorporation documents or applying for licenses.

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Business activities that were previously covered under a particular KBLI code may now fall under a different classification or require selection from multiple corresponding KBLI 2025 codes. Identifying the correct classification at the outset can help reduce delays during company establishment and future licensing applications.

Preparing for the transition

Indonesia’s transition to KBLI 2025 is designed to minimize disruption through automatic conversion mechanisms integrated into the OSS and AHU systems. For many businesses, the change will occur with little immediate impact.

The transition becomes more significant when businesses apply for new licenses, expand into additional activities, establish new entities, or continue to rely on classifications that predate KBLI 2020. In these situations, understanding how existing or proposed business activities correspond to KBLI 2025 can help reduce administrative delays and support a smoother licensing process after implementation.

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