If your company is registered in Indonesia, there is a compliance deadline you cannot afford to miss.
As regulated under BPS Regulation No. 7 of 2025, Indonesia has officially replaced its 2020 business classification system with the new KBLI 2025 framework. Every business, both local PTs and foreign-owned PT PMAs, must adjust their registered activities to the new codes before June 18, 2026.
If you miss this deadline, your Business Identification Number (NIB) risks being flagged or blocked in the Online Single Submission (OSS) system. In that case, you will need to fix the issue before you can renew, apply for new licenses, or submit compliance reports.
To help navigate these changes, this article breaks down what has changed, which sectors are most affected, and what you need to do to stay on the right side of the law.
What Is KBLI and Why Does It Matter?
KBLI, or the Indonesian Standard Industrial Classification System, is a standard classification system for business activities. Every registered company is required to declare the KBLI code applicable to its activities.
Companies include these codes in their Articles of Association (AOA). The codes help determine which licenses are required, set investment limits, define risk levels, and outline regulatory requirements.
You should pay attention to this KBLI update because it changes how your company is classified under the law and can affect its regulation.
If your current code is changed, removed, or merged with another code, your NIB might no longer reflect your actual business activities. This could cause legal issues.
Assigning more specific codes aims to provide businesses with greater legal certainty and make regulatory oversight easier.
What Has Changed in KBLI 2025?
The 2025 update is the most significant structural revision since KBLI 2020. The number of five-digit business codes has grown from 1,790 to 1,933, an increase of 143.
A brand new section, Section V, has been created specifically for Carbon and Environmental Market Services to support Indonesia’s Net Zero targets.
Artificial Intelligence, autonomous systems like UAVs and drones, and blockchain-related activities now have their own dedicated codes.
Practically, the changes fall into a few main areas.
Digital platforms are now grouped by what they offer, not how they operate
The old KBLI 6312 code for “web portals and digital platforms” has been removed.
If your e-commerce site, booking app, or content platform used the 6312 code, you will need to use a different code now.
You should classify your business according to the services you provide. For example, online travel booking platforms now fall under the Tourism Information Services category (KBLI 79901). This category covers businesses that provide information about tourist sites and facilities and also offer booking services for accommodation, food, flights, and land and sea transportation.
Online and offline retail are now treated the same
Before, businesses that sold only online used KBLI 4791 to distinguish themselves from stores with physical locations. The 2025 update removes this. The government no longer classifies retail by sales method. What matters now is the type of products you sell.
If you have an online store selling imported skincare products, you are no longer considered an online retailer under KBLI code 4791. You fall under KBLI 47724 (Retail Sale of Cosmetics for Human Use), which covers all retail sales of skincare, makeup, perfume, hair care, and personal care products, with or without a physical store.
Food and beverage businesses are now classified by location, not menu
Previously, F&B operators had to pick either a “restaurant” or “cafe” code depending on whether they served full meals or just snacks and drinks. Now, that difference no longer applies.
Under KBLI 2025, KBLI 56101 applies to any business with a permanent location. KBLI 56102 is for mobile or semi-permanent setups, such as food trucks and street stalls. The same code applies whether you run a fine-dining restaurant or a specialty coffee bar.
New sectors now have formal codes
KBLI 2025 now officially recognizes businesses that were previously in legal gray areas. This includes content creators, AI developers, crypto asset exchanges, drone manufacturers, and carbon credit traders.
| Term | Definition |
|---|---|
| Section V | A new KBLI category, created for Carbon and Environmental Market Services under KBLI 2025. |
| Net Zero Targets | Government climate goals aimed at balancing greenhouse gas emissions through reduction and offset mechanisms. |
| UAV (Unmanned Aerial Vehicle) | A drone or aircraft operated without an onboard pilot, commonly used for mapping, surveying, and technical services. |
Specific Risks for Businesses in Bali
If you operate a PT PMA in Bali, there is additional pressure beyond the general compliance deadline.
On January 22, 2026, Bali Governor Wayan Koster and Deputy Minister of Investment Todotua Pasaribu signed a Memorandum of Agreement between the Ministry of Investment/BKPM and the Bali Provincial Government on the supervision and control of investment activity in Bali.
As a result, authorities are rolling out stricter supervision of PT PMA companies across the province, with field inspections expected to begin by June 2026. This is not a future consideration. It is happening at the same time as the KBLI transition.
The enforcement focus is on three groups.
- Companies registered under low and medium-low-risk KBLI classifications
- Companies using a Virtual Office address
- Companies that cannot demonstrate actual investment.
Authorities are checking whether your registered activities match what your company is actually doing on the ground.
Two KBLI codes are under particularly close scrutiny.
KBLI 68111 (Real Estate): High-Risk for Villa Operators
Many foreign investors in Bali use KBLI 68111 for managing villas and small property rentals. However, authorities have noticed that some businesses misuse this code, especially when they do not meet the minimum capital requirement for a PT PMA.
Officials are now closely reviewing two types of properties under this code:
- Residential (Hunian): These are private homes used only for living.
- Mixed-Use Residential (Hunian Campuran): These are homes that also serve a business function, such as a shophouse (ruko) or an office-house (rukan).
If your PT PMA is registered under KBLI 68111 for villa operations, you could face the following:
- Field inspections
- Verification of your actual project size
- Review of your investment realization value
- Administrative penalties if you are not compliant
- Directions to restructure into a hotel-related KBLI
- Requirement to convert to a domestic investment company (PMDN) if PMA status cannot be justified
The enforcement process begins with an administrative warning, followed by a temporary suspension of your business license, and finally, revocation.
If you do not comply with the new KBLI, you may not be able to renew your OSS license, your NIB status could be affected, and your future business growth may be limited.
KBLI 70209 (Management Consultancy): Virtual Office No Longer Accepted for New Registrations
New PT PMA companies in Bali are no longer allowed to activate KBLI 70209 with a Virtual Office address.
A Virtual Office does not constitute sufficient proof of an operational presence. Existing companies may still be inspected, especially to check if they have met the IDR 10 billion minimum investment requirement.
| Term | Definition |
|---|---|
| PT PMA (Foreign-Owned Company) | An Indonesian company with foreign ownership used by international investors to conduct business legally in Indonesia. |
| Investment Realization | Evidence showing that a company has deployed its committed investment capital into actual business activity or assets. |
| Virtual Office | A registered business address that provides administrative services but may not represent a physical operational workplace. |
| PMDN (Domestic Investment Company) | An Indonesian company owned entirely by Indonesian citizens or entities without foreign shareholding. |
| Administrative Penalties | Regulatory sanctions, such as warnings, suspensions, or revocations, imposed for non-compliance. |
New Codes for Sectors That Previously Had None
KBLI 2025 introduces dedicated codes for sectors that previously had no formal classification. If your business falls into any of the categories below, you now have a proper legal home.
Digital Content
| KBLI Code | Business Activity |
| 5920 | Audio podcast production and distribution |
| 5911 | Video podcast and audiovisual content production |
| 6010 | On-demand audio streaming platforms |
| 6020 | On-demand video streaming platforms |
A content studio producing branded podcasts for corporate clients previously had to register under a generic media or other services code. Under KBLI 2025, KBLI 5920 now exists specifically for this activity.
AI and Emerging Technology
| KBLI Code | Business Activity |
| 62015 | Artificial Intelligence programming and development |
| 58200 | Software publishing with AI integration |
| 30303 | UAV and drone manufacturing |
| 74902 | Drone-based technical mapping and surveying |
A drone survey company providing geospatial mapping services for property developers in Bali no longer needs to fit under a generic IT services code. KBLI 74902 now covers this directly.
Crypto Assets
| KBLI Code | Business Activity |
| 64994 | Proprietary crypto asset trading |
| 6611 | Crypto asset exchange operations |
| 6612 | Crypto asset brokerage services |
| 64999 | Issuance of crypto assets with liabilities |
Carbon Markets (new Section V)
| KBLI Code | Business Activity |
| 39001 | Carbon capture |
| 39002 | Carbon storage |
| 64995 | Carbon credit trading |
| 6611 | Carbon brokerage and exchange services |
How to Update Your KBLI Before the Deadline
Because your company’s KBLI code is included in the AOA, you must follow a formal legal process to update it.
Start by comparing your current 2020 KBLI code with the 2025 list. This helps you see which codes are still valid, which have been removed, and which ones need to be replaced.
Next, have a registered notary draft a Notarial Deed of Amendments to officially record your updated business activities.
After the deed is signed, submit the amended AOA to the Ministry of Law and Human Rights (Kemenkumham) under Minister of Law and Human Rights Regulation (Permenkumham), for approval. You will receive an official Ministerial Decree, usually within 3 to 5 business days.
Finally, be sure to update your OSS account so your NIB can be issued properly.
Important note: As announced on the OSS system, you cannot renew permits, change licenses, or submit new applications until your KBLI code aligns with the 2025 framework. If you use old codes for your quarterly investment report (LKPM), the system may reject it, and you could face penalties from the Investment Coordinating Board (BKPM).
| Term | Definition |
|---|---|
| Notarial Deed of Amendments | A notarized legal document recording official changes to a company’s Articles of Association, including updated business activities. |
| Ministerial Decree (SK Menteri) | An official government approval document confirming acceptance of corporate legal changes. |
| OSS (Online Single Submission) | Indonesia’s integrated digital business licensing platform used for permits, registration, and compliance management. |
| LKPM (Investment Activity Report) | A mandatory report submitted by investment companies to show business activity and investment realization progress. |
The Deadline Is Closer Than You Think
The six-month transition period ends on June 18, 2026. After that date, any NIB that does not comply with KBLI 2025 may not be valid for licensing and reporting.
For businesses in Bali, regulatory checks are already scheduled during this period.
If you are unsure whether your KBLI codes remain valid under the 2025 framework, now is the best time to review them before enforcement intensifies in Bali and across Indonesia.
ILA Global Consulting can help you review your KBLI classification, amend your Articles of Association, and update your OSS registration before the June 18 deadline. You can learn more about our services and book a meeting with our legal team here.
Frequently Asked Questions (FAQ)
The transition period ends on June 18, 2026. After that date, any NIB not aligned with KBLI 2025 may be considered invalid for licensing and reporting purposes. Businesses in Bali face additional pressure, as BKPM field inspections are scheduled for the same period.
Yes. Because KBLI codes are embedded in your Articles of Association, the update requires a formal Notarial Deed of Amendment, submission to the Ministry of Law and Human Rights (Kemenkumham) for an SK Mentri, and an OSS account update. It is not a change you can make directly in the OSS system without the legal documentation behind it.
Both codes have been removed under KBLI 2025. You need to identify the correct replacement code based on what your business actually does, not how it operates. A gap analysis comparing your current registration against the 2025 code list is the recommended first step. If you are unsure which code applies, consulting a legal advisor before the deadline is strongly advised.
Yes, particularly if your company covers small-scale villa operations or property rental. Authorities have flagged KBLI 68111 for misuse in Bali and are conducting field inspections to verify project scale and investment realization. If your operations are closer to property management than real estate development, you may need to transition to KBLI 68112. Non-compliance can result in administrative sanctions, license suspension, or a requirement to convert to a PMDN structure.
For KBLI 70209 (Management Consultancy), new PT PMA registrations in Bali using a Virtual Office address are no longer accepted. A Virtual Office is no longer considered sufficient proof of operational presence. If your company is already registered under this code with a Virtual Office address, expect a review of your investment realization against the IDR 10 billion minimum requirement.
The enforcement process follows a clear escalation path. Authorities will first issue an administrative warning, then impose a temporary suspension of your business license, and finally revoke it if the issue remains unresolved. Non-compliance can also block your OSS license renewals, affect your NIB status, and limit any future business expansion in Indonesia.
