Legal Insights

NEW KBLI CODES RELEASED — ENSURE YOUR BUSINESS CLASSIFICATIONS ARE UP TO DATE

As you may already be aware, business activities in Indonesia have a unique numerical code (known as the KBLI Code). This numerical code will determine the scope of business activities that a company may perform as well as which additional permit(s) are required.

The list of KBLI Codes is regulated under the Regulation of Head of Central Statistics Agency (locally known as Badan Pusat Statistik or "BPS") and is amended from time to time. In the past, when a new BPS Regulation regarding KBLI Codes was introduced, there will be changes to some KBLI Codes which may include a change of numerical KBLI code, a change of scope of activities, the consolidation of several KBLI Codes into one or separation of activities that were previously captured under one KBLI Code into two or more KBLI Codes. As a result, some companies may find their registered KBLI Code (under the new regulation) no longer matches their activities and therefore requires an adjustment.

Previously, the list of KBLI Codes is regulated under the Regulation of Head of BPS No. 2 of 2020 on Standard Classification of Indonesian Business Fields (hereinafter, "KBLI 2020") – which has now been revoked by this new 2025 regulation (i.e., Regulation of Head of BPS No. 7 of 2025 on Standard Classification of Indonesian Business Fields).

The new regulation provides that each KBLI Code user (which essentially captures all companies in Indonesia, including foreign investment company) shall align their KBLI Code with the provision of this new regulation within six (6) months following the enactment of this new regulation (i.e., by 18  June 2026). To assist business players in identifying the new KBLI Code(s) relevant to their activities, the regulation also includes a concordance table indicating which KBLI Code(s) have undergone changes under the new regulation (i.e., whether they were added, removed, consolidated, spun off, reclassified, or redefined).

While the regulation does not specify sanctions for non-compliance to this requirement, strict interpretation could mean operating without a proper license - risking business cessation and license revocation of the company in question. Although unintentional non-compliance (as a result of regulatory changes) is unlikely to be sanctioned with the most severe penalty. However, failure to align with the new regulation will, at the very least, pose difficulty to the company during audit or when it is about to perform a corporate action.

In light of the above, we recommend checking the KBLI Code of your Indonesian company to confirm if they are affected with the new regulation and if so, perform the adjustment in due course. Despite the relatively short timeframe, the detailed procedures for implementing the required adjustments are still being finalized. We will continue to monitor developments and provide updates in due course.

We hope you find this update useful. If you have any questions or need assistance to ensure compliance with these latest developments, please feel free to contact us.

Author:

Cahya Buana Arief

Counsel

Legal Practice 

cahya.buanaarief@roedl-indonesia.com

Veranica Astri

Senior Associate

Legal Practice 

veranica.astri@roedl-indonesia.com