Did you know that based on the principle of lex posterior derogat legi priori, a newer regulation overrides or nullifies an older one? This aligns with the provisions concerning the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) have now undergone a significant change.
Previously, the KBLI was regulated under Regulation of the Central Statistics Agency (Badan Pusat Statistik or “BPS”) Number 2 of 2020 (“BPS Regulation 2/2020”). However, following the introduction of BPS Regulation Number 7 of 2025 on 18 December 2025 (“BPS Regulation 7/2025”), BPS Regulation 2/2020 has been officially revoked and declared no longer valid. Given the above, all legal entities that still refer to KBLI 2020 and are affected by the reclassification under KBLI 2025 are required to make the necessary adjustments. BPS Regulation 7/2025 stipulates that all registered KBLI users—namely company owners or business actors—must align their business activities with KBLI 2025 no later than six (6) months from the date of its introduction according to Article 5 of the said regulation.
Although BPS Regulation 7/2025 does not explicitly provide sanctions for failure of adjustment to KBLI 2025, business actors are strongly advised to make the necessary adjustments in order to avoid potential implications to their business activities. The changes introduced under KBLI 2025 may involve a reassignment of KBLI codes and/or revisions to the descriptions of business activities. In practice, such changes may give rise to legal and administrative implications, particularly if the KBLI classification stated in the Business Identification Number (Nomor Induk Berusaha or “NIB”) no longer corresponds to the company’s actual business activities.
Furthermore, the recent implementation of KBLI 2025 may result in additional capital requirements for Foreign Investment (Penanaman Modal Asing or “PMA”) companies, if the company is deemed necessary to add new KBLI code in order to properly reflect its actual business activities. In this situation, the addition of a new five-digit KBLI classification may trigger separate minimum investment obligations. Article 26 of Regulation of the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board No. 5 of 2025 states that a PMA company must have a minimum total investment of more than IDR 10 billion (not including land and building(s)) for each five-digit KBLI business activity and for each project location. Consequently, if a PMA company adds a new KBLI code, the minimum investment requirement may apply independently to that additional business line and/or location.
Business actors should also ensure that their business activities remain aligned with the prevailing Positive Investment List as regulated under Presidential Regulation No. 49 of 2021. On the Positive Investment List, since foreign ownership limitations and sectoral requirements are determined based on specific KBLI codes, any changes in classification under KBLI 2025 must be carefully cross-checked against the relevant annex of Presidential Regulation No. 49 of 2021. Failure to ensure the alignment may result in regulatory inconsistencies, including potential issues relating to foreign shareholding composition, licensing compliance, and overall investment eligibility.
In light of the changes to the KBLI classification under KBLI 2025, business actors who need to amend or update their KBLI code must first conduct a legal and operational review to ensure that their actual business activities are properly aligned with the latest five-digit KBLI classification. If a change or addition of KBLI code is required, the company must pass resolutions through the General Meeting of Shareholders (“GMS”) and execute a notarial deed to reflect the amendment. The amendment must then be approved by the Ministry of Law (“MOL”) according to the prevailing Indonesian Company Law (“Company Law”).
Following the corporate amendment, the company must update its NIB and relevant business licenses through the Online Single Submission (“OSS”) system. The OSS will reassess the risk level of the updated business activity and determine the corresponding licensing requirements under the risk-based framework. For PMA company in particular, careful consideration must be given to the minimum investment requirement per five-digit KBLI code and per project location, as well as compliance with the Positive Investment List, to ensure that the updated classification does not affect foreign ownership limits or investment eligibility.
With the implementation of KBLI 2025, business actors are therefore encouraged to proactively review the conformity of the KBLI stated in their business. This adjustment constitutes an important step to not only ensuring compliance with the prevailing laws and regulations and implementing good corporate governance practices, but also to mitigate administrative risks and safeguard the sustainability of business operations going forward.
DISCLAIMER
This article is intended for general informational purposes only and is based on the laws and regulations in force at the time of writing. It does not constitute legal advice, and readers should not rely solely on the information provided when making business or legal decisions. Regulations and their interpretations may change over time, and their application may vary depending on specific facts and circumstances. Business actors are encouraged to seek professional legal advice to ensure compliance with the applicable regulatory framework. For further clarification or assistance in assessing the implications of KBLI 2025 on your business activities, our team would be pleased to provide more detailed advice.