Key Changes to Indonesian Standard Classification of Business Fields for Alignment with Fifth Revision of ISIC
The revisions under KBLI 2025 generally follow two principal approaches: (i) one to many, whereby a single KBLI code is divided into multiple new codes; and (ii) many to one, whereby several existing KBLI codes are consolidated into a single code.
On 18 December 2025, the Central Bureau of Statistics (“BPS”) promulgated Regulation No. 7 of 2025, introducing the latest version of the Indonesian Standard Industrial Classification (“KBLI 2025”). This regulation replaces the previous KBLI issued under BPS Regulation No. 2 of 2020 (“KBLI 2020”).
The KBLI is developed in alignment with the International Standard Industrial Classification of All Economic Activities (“ISIC”) issued by the United Nations Statistics Division (UNSD). Each KBLI code sets out a specific description and scope of business activities and is periodically updated every five years, in accordance with the recommendations of the United Nations Committee of Experts on International Statistical Classification (UNCEISC), to reflect developments in economic activities. Each company in Indonesia must be established by selecting the appropriate KBLI, which determines the applicable foreign ownership limitations and business licensing requirements under prevailing laws and regulations.
BPS Regulation No. 7 of 2025 was issued, among others, to adopt ISIC Revision 5, which was released in 2024. Through its socialization meeting held on 5 December 2025, the BPS also cited several factors underlying the update, namely: (i) global economic dynamics, including the emergence of new business sectors; (ii) digital technology transformation, such as AI based technologies, social media monetization, and crypto assets; (iii) changes in business models, including factoryless goods producers (FGP); and (iv) environmental issues related to climate change, such as carbon capture and storage.
The revisions under KBLI 2025 generally follow two principal approaches: (i) one to many, whereby a single KBLI code is divided into multiple new codes; and (ii) many to one, whereby several existing KBLI codes are consolidated into a single code. Other types of changes include amendments to titles or descriptions, reclassification of codes, recoding, and the deletion of codes.
Some of the key changes are as follows:
1) There were 1,789 KBLI codes under KBLI 2020, compared to 1,558 codes under KBLI 2025. At a surface level, this reflects a simplification of business activity classifications.
2) The processing industry accounts for the largest number of changes, mainly arising from revisions to titles and description.
3) In the trading category, there are many to one changes and recoding resulted from the simplification of trade classifications and the reassignment of vehicle repair and maintenance activities to other category.
4) Most one-to-many changes occur in the financing & insurance sector, reflecting the need for specialized classifications in response to the expanding range of financial products and services.
5) The information and communications category is split into two categories: a) publishing, broadcasting, and content production and distribution activities; and b) telecommunications, computer programming, consultancy, computing infrastructure, and other information service activities.
The online retail trading category has been removed, as classifications are no longer based on business location in accordance with ISIC Revision 5. In addition, the former all in one “web portal and/or digital platform for commercial purposes” category (63122), which was previously classified under the information and communications category, has been reclassified under the trading category as a digital retail trading intermediation platform (47901). This generally aligns with the prevailing trading regulations governing platforms that provide intermediation services.
In the publishing, broadcasting, and content production and distribution activities category, there are new KBLI codes such as podcast creation (5911); distribution and streaming of audio on demand (60103); distribution and streaming of video on demand (60203); social media/other content distribution platform such as blog and wiki, online game (60390). Broadcasting activities that were previously categorized by the ownership (state/private) have been reclassified based on technology (analog or digital).
One of the major changes is the official recognition of video on demand (VOD) streaming activities—commonly referred to as over the top (OTT) services—as a distinct line of business under KBLI 2025. This represents a development from their previous classification under KBLI 2020, where such activities were grouped within the all in one “web portal and/or digital platform for commercial purposes” category (63122) mentioned above. As background, in 2020 several Indonesian broadcasting entities filed a judicial review petition against the Indonesian Broadcasting Law, seeking to expand the statutory definition of “broadcasting” to encompass OTT services. In its decision issued in 2021, the Constitutional Court rejected the petition, noting, among other reasons, that broadcasting is characterized by “one to many” and “push” services—where audiences cannot determine viewing time—whereas internet based transmission operates on an “any to any” basis, and OTT services constitute “pull” services that allow users to control the timing and duration of access.
Article 5 of BPS Regulation No. 7 of 2025 requires business undertakings to align their business classifications with KBLI 2025 within six months from the issuance of the regulation, i.e., by June 2026. However, the regulation does not further elaborate on the scope or practical implications of such “alignment,” including its potential impact on existing business operations. Although the regulation has been formally enacted, it has yet to be fully implemented in practice. In this regard, both the Online Single Submission (OSS) system—the primary gateway for business licensing in Indonesia—and the Ministry of Law (MOL) system, continue to apply KBLI 2020. Moreover, neither the Investment List—which identifies business sectors that are open, closed, or open with restrictions to foreign investment and was last updated in 2021 based on KBLI 2020—nor the government regulation on risk based business licensing—which sets out licensing requirements and obligations and was last updated in June 2025—has been updated to align with KBLI 2025. Accordingly, the timeline for the full implementation of KBLI 2025 remains unclear.
The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM)—which administers the OSS system—has informally indicated that it plans to issue a comparative table between KBLI 2020 and KBLI 2025, tentatively in April 2026. Nevertheless, the timing of adoption by the OSS and MOL systems, as well as any related follow up actions required of businesses, remains uncertain. Business undertakings are therefore advised to continue monitoring further developments.
Disclaimer – The views expressed in this article are the personal views of the authors and are purely informative in nature.