New Chapter in the Implementation of Risk-Based Business Licensing
The Government of Indonesia has enacted Government Regulation No. 28 of 2025, which revokes Government Regulation No. 5 of 2021.
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Overview
In December 2025, the Government of Indonesia replaced the Indonesia Standard Business Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) issued in 2020 (“KBLI 2020”) with a KBLI that adopts the International Standard Industrial Classification of All Economic Activities (ISIC) Revision 5, issued by the United Nations Statistical Commission (UNSC) dated 11 March 2024, under Regulation of the Head of Central Board of Statistics (Badan Pusat Statistik) No. 7 of 2025 on KBLI (“KBLI 2025”).
KBLI 2025 introduces new codes for newly defined business activities and also regroups and recodes certain types of business activities previously regulated under KBLI 2020. KBLI 2025 also requires companies, as applicable, to update their KBLI codes within six months from its effective date (i.e., by 18 June 2026).
Key Changes
As a result, the total number of categories increase from 21 categories (A-U) to 22 categories (A-V).
Conclusion
KBLI 2025 is expected to increase certainty and ease of doing business in Indonesia. While KBLI 2025 has technical implications, as companies must review and update their KBLI codes in their corporate documents and government database, including the Directorate General of Administration Law (Direktorat Jenderal Administrasi Hukum Umum or AHU) and Online Single Submission (OSS) systems, to align with the new KBLI 2025 by 18 June 2026, the Government of Indonesia is expected to promptly issue relevant implementing regulations and technical guidance to avoid any delays and uncertainty.
For more information or inquiries, please contact:
Andika Mendrofa at andika.mendrofa@nusaadvocates.com
Shanti Prameshwara at shanti.prameshwara@nusaadvocates.com
Sharon Solomon at sharon.solomon@nusaadvocates.com
The Government of Indonesia has enacted Government Regulation No. 28 of 2025, which revokes Government Regulation No. 5 of 2021.
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