Indonesia’s business community has closely watched the transition from KBLI (Indonesian Standard Industrial Classification) 2020 to KBLI 2025. These KBLI 2025 changes raised concern that structural shifts in business activity codes might jeopardize existing permits. The government addressed these concerns directly and emphasized that the update would not invalidate old licenses. Officials also clarified that the update reflects administrative reform rather than a change in business obligations.
Government Clarifies KBLI 2025 Changes
The Indonesian government implemented KBLI 2025 through the new regulation of the Central Statistics Agency. The latest framework updates classifications by expanding from a four-digit to a five-digit system. This makes activity descriptions more detailed and specific, while improving sectoral clarity for both statistical and licensing purposes.
Officials highlighted that KBLI originally functioned as a codebook for statistical needs. However, policymakers later integrated it into the Online Single Submission (OSS) licensing ecosystem. As a result, revisions to KBLI now carry implications for business licensing, even though the core purpose remains technical.
Abi Al Irsyad, Senior Investment Management Specialist at the Ministry of Investment/BKPM, stressed that the update must not harm business actors. “This is a government-side change and must not negatively impact the public.” He further reassured operators. “If the licenses have been issued, and businesses continue their operations, there’s no need to worry.”
Business License Validity Remains Protected
The government confirmed that business license validity remains secure under the new classification system. Existing permits stay valid as long as companies continue operations without major changes. Regulators also clarified that businesses do not need to revise deeds or modify licensing documentation solely because of the KBLI transition.
Abi emphasized regulatory continuity to reduce confusion and compliance burdens. He explained that operators only need to adjust their documents when they renew permits or alter their business activities. Otherwise, their current licensing status remains intact and recognized under KBLI 2025.
Abi reiterated this message to reassure long-standing companies. “If the license has been issued and business activities continue, no changes are required. When extending the license, the system will adjust automatically.” This approach signals that the update intends to modernize administration rather than impose new hurdles.
Impact on OSS Licensing System Integration
BKPM officials underscored the technical dimension of the update. The adoption of KBLI 2025 requires integration across administrative systems, particularly between OSS and the Directorate General of General Legal Administration (AHU). Officials explained that the OSS platform must draw deed and approval data from AHU records to ensure accurate mapping.
Arief Margatama, Senior Investment Management Specialist at BKPM, highlighted this dependency. “For KBLI 2025, the system must integrate with AHU. If AHU has not modernized, the OSS cannot pull the data.” He added that companies with deeds and approval decrees already registered at AHU will automatically sync with OSS. This mechanism eliminates the need for manual adjustments as long as companies do not modify their operational scale or scope.
Regulatory Stability for Investors and Businesses
The updated framework aims to support a more predictable investment environment. Regulatory stability helps reduce uncertainty and compliance costs, which remain key factors for both domestic and foreign investors. The government also seeks to reinforce confidence by ensuring administrative reforms do not disrupt market continuity.
Investors often react sensitively to regulatory changes that affect legal certainty. By maintaining continuity for existing permits, policymakers demonstrate a commitment to business-friendly governance. This helps protect long-operating firms and encourages new market entrants in a competitive regional landscape.
Assurance for Long-Operating Business Actors
The KBLI 2025 update represents a structural refinement of Indonesia’s business classification system. Yet it does not cancel existing licenses or disrupt ongoing commercial operations. The government reinforced that old permits remain valid and recognized under the new codebook. With integration efforts underway, officials expect smoother harmonization between OSS and AHU. This approach ensures continuity while modernizing administrative processes, offering reassurance to businesses that rely on regulatory certainty for long-term planning.
Source: hukumonline.com
Image: Canva
