For business owners in Indonesia, a KBLI (Indonesia Standard Industrial Classification) code is far more than just a string of digits. This code determines the specific business activities recorded in licensing systems—from the establishment of legal entities in the Directorate General of Legal Administrative Affairs (Ditjen AHU) system to the issuance of business licenses through the OSS (Online Single Submission) system.

The government is now undertaking a major update: transitioning from KBLI 2020 to KBLI 2025. This move was formalized by the issuance of Joint Circular Letter (SEB) Number 4.S/Year 2026, Number M.HH-1.HH.04.02/Year 2026, and Number 1/Year 2026. This document was signed by the Minister of Investment and Downstreaming/Head of BKPM, the Minister of Law, and the Head of BPS (Statistics Indonesia) on March 25, 2026.

Why is the KBLI Being Adjusted?

The foundation of this adjustment is BPS Regulation Number 7 of 2025 regarding the Indonesia Standard Industrial Classification. This regulation mandates all KBLI users to complete adjustments no later than six months after the regulation was enacted.

KBLI is not merely a statistical classification. In the context of Risk-Based Business Licensing, the KBLI code serves as the basis for determining the NSPK (Norms, Standards, Procedures, and Criteria) that govern the risk level of a business activity. In other words, your KBLI code dictates whether your business only requires an NIB (Business Identification Number), a Standard Certificate, or a more complex Permit.

Who is Affected?

While this circular is addressed to various authorities, the impact on business owners is most significant in two areas:

  1. The Ditjen AHU System: Where legal entities (PT, CV, Firms, Cooperatives) are registered, recording the purposes, objectives, and types of business activities based on KBLI codes.
  2. The Risk-Based OSS System: Where Business Licenses (NIB, Standard Certificates, Permits) are issued, using KBLI codes to determine the risk level and applicable NSPK.

When and How Will the Adjustment Occur?

  • Deadline: The KBLI 2025 adjustment within the OSS and Ditjen AHU systems will be completed by the Ministry of Investment and Downstreaming/BKPM and the Ministry of Law by June 18, 2026, at the latest.

There are three conversion models for KBLI codes regulated in this circular:

  • (1) One-to-Many: One KBLI 2020 code is split into several KBLI 2025 codes. For example, an old code may now have more specific sub-categories based on the type of activity.
  • (2) Many-to-One: Several KBLI 2020 codes are merged into a single KBLI 2025 code. This occurs when activities previously separated are now considered sufficiently represented by one new classification.
  • (3) One-to-One: A KBLI 2020 code is converted directly to a new KBLI 2025 code. The substance of the activity remains the same; only the numerical code changes.

Automated vs. Manual: What’s the Difference?

The good news is that not all adjustments require manual action from the business owner.

  • Automatic Adjustment: If the KBLI change only involves a numerical conversion without altering the substance of the business’s purposes, objectives, or scope of activities, the adjustment will be handled automatically by the Ditjen AHU and OSS systems based on conversion tables. In these cases, business owners do not need to amend their Articles of Association.

What Stays the Same?

Existing licenses remain valid. Specifically, the SEB emphasizes that Basic Requirements (PD), Business Licensing (PB), and PB UMKU that were issued, verified, or approved prior to the KBLI 2025 implementation are declared to remain in effect.

For adjustments in the Ditjen AHU system, the description of purposes, objectives, and business activities in the deed does not need to be adjusted as long as there are no changes or additions of new business activities. The adjustment is mandatory only for the KBLI codes themselves.

Conclusion

The transition to KBLI 2025 is a significant step in the government's effort to harmonize the business licensing system in Indonesia. While most conversions will be processed automatically by the system, business owners should remain vigilant and prepared—especially those whose KBLI codes undergo splitting or substantial changes.

 

Disclaimer: This article is intended for informational and educational purposes only and does not constitute legal advice. Primary sources: SEB No. 4.S/2026, No. M.HH-1.HH.04.02/2026, No. 1/2026, and the cover letter from the Minister of Investment and Downstreaming No. B-69.S/PI.08/A.1/2026 dated March 27, 2026.

 

By: Adv. Dipo Farizi, S.H., CLA.