For many business owners, the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI) is often perceived as merely an administrative code.
In reality, within the Online Single Submission Risk Based Approach (OSS RBA) system, KBLI functions as the legal identity of a business. Through this classification, the government determines whether a business may operate solely with a Business Identification Number (Nomor Induk Berusaha or NIB), or whether it must fulfill additional licensing and compliance standards.
Since the implementation of KBLI 2025 under the Statistics Indonesia Regulation Number 7 of 2025, the process of determining KBLI can no longer be approached casually. Structural changes, the introduction of new business sectors, and alignment with international standards mean that even a minor error may have serious consequences for business license continuity.
For this reason, understanding how to choose KBLI 2025 accurately from the outset has become a critical step for any business seeking to operate safely and legally.
What Is KBLI and Why Businesses Depend on It
The Indonesian Standard Industrial Classification (KBLI) is the official classification system used by the government to categorize all economic activities in Indonesia.
This system is developed and periodically updated by Statistics Indonesia (Badan Pusat Statistik or BPS) and serves as a reference across multiple government institutions.
In practice, KBLI plays a vital role in several legal and administrative areas, including the following.
- Determining the level of business risk within the OSS RBA system
- Serving as the basis for issuing the NIB
- Acting as a reference for the Business Field Classification (Klasifikasi Lapangan Usaha or KLU) in the taxation system
- Being used by banks, investors, and business partners during due diligence processes
As a result, selecting an inappropriate KBLI may expose a business to legal risks, tax issues, and contractual obstacles in the future.
Understanding the Structure of KBLI 2025 from Top to Bottom
One of the most common mistakes made by business owners is focusing only on the KBLI title without understanding its underlying structure. In fact, KBLI is arranged hierarchically, and each level carries different regulatory implications.
The structure of KBLI 2025 consists of the following levels.
- Category with one letter ranging from A to V
- Main Group with two digits
- Group with three digits
- Subgroup with four digits
- Business Group with five digits
The five digit business group represents the smallest unit used within the OSS system to determine licensing requirements and business risk levels.
Under KBLI 2025, the total number of categories has increased to twenty two, reflecting official recognition of modern economic sectors such as the digital economy, creative industries, and green industries.
Practical Guidance on How to Choose KBLI 2025 in OSS RBA
To avoid costly mistakes, how to choose KBLI 2025 should be approached systematically rather than by simply matching a business name to a code title.
Identify the Primary Business Model
The analysis should focus on the activity that generates the largest portion of revenue. Business owners must determine whether their core activity falls under services, trading, manufacturing, or brand based operations.
Use the Search Function in OSS
When using the OSS RBA, input highly specific keywords. Generic keywords will produce too many options and significantly increase the risk of selecting an incorrect classification.
Review the Five Digit Business Group Level
Do not stop at the category or group level. Carefully read the full description of the five digit business group to understand the following aspects.
- Scope of business activities
- Technical limitations
- Supervising authority
Verify the Scope of Activities
A difference of a single digit may result in substantially different licensing obligations. For example, office building construction and residential building construction are subject to different technical standards even though they may appear similar at first glance.
Align with Business Scale
Business scale based on capital and revenue determines whether the NIB alone is sufficient or whether additional standard certificates and licenses are required.
At this stage, many micro and small enterprises assume they are compliant, while their activities actually fall under medium or high risk categories.
Strategic Updates in KBLI 2025 That Must Be Understood
KBLI 2025 represents more than a numerical update. It introduces significant structural changes.
Separation of Information and Technology Sectors
Media, broadcasting, and content activities are now separated from telecommunications and programming activities. This separation enables more accurate mapping of creative industries and technology sectors.
Formal Recognition of the Digital Economy
Activities such as podcasting, streaming, and digital audio distribution now have specific classification codes, including code 60103. This change provides legal certainty for content creators who previously relied on generic KBLI classifications.
Factoryless Goods Producers (FGP)
Brand owners who outsource manufacturing to third parties are now classified based on the industry of their products rather than as traders. This shift has direct implications for licensing and tax structures.
Future Technology and Green Economy
KBLI 2025 introduces specific classifications for artificial intelligence, blockchain technology, crypto assets, carbon units, and Carbon Capture and Storage. These classifications establish a legal foundation for future oriented industries.
Legal Risks of Choosing the Wrong KBLI
Errors in determining KBLI are not minor administrative issues. Within the risk based licensing framework, the consequences can be severe and multi layered.
Administrative sanctions that may be imposed include the following.
- Written warnings
- Temporary suspension of business activities
- Administrative fines
- Permanent revocation of the Business Identification Number and business licenses
The Holywings Jakarta case serves as a clear example. A mismatch between retail alcoholic beverage classification and bar service activities resulted in the revocation of licenses for multiple outlets. The key lesson is clear. Actual business activities must align with the registered KBLI.
In addition, incorrect KBLI selection may trigger tax risks due to mismatches in the KLU, as well as cause failures in bank financing, tenders, or strategic partnerships.
KBLI 2025 Transition Period: What Businesses Should Do Now
Since its enforcement on 18 December 2025, businesses have a six month period to make the necessary adjustments. This transition period applies not only to new businesses but also to those already in operation.
Recommended steps include the following.
- Comparing existing KBLI classifications with the KBLI 2025 transition table
- Adjusting the company purpose and objectives where required
- Updating data within the OSS system
- Reconciling tax data to maintain consistency
For foreign investors, selecting the correct KBLI 2025 classification is also essential to ensure compliance with ownership restrictions and current investment policies.
The Role of XPND in Assisting with KBLI 2025 Selection
After understanding the regulatory complexity and associated risks, many business owners realize that how to choose KBLI 2025 requires a structured and analytical approach.
This is where XPND plays a role. XPND assists businesses in positioning KBLI selection as part of a broader business structure analysis rather than a purely administrative task. The process begins with mapping business activities to ensure that the selected KBLI accurately reflects the core value generating operations.
XPND then conducts a detailed analysis of the KBLI scope down to the five digit business group level, reducing the risk of errors caused by overly broad classifications. This assistance also includes evaluating alignment between KBLI selections, corporate legal structure, and stated business purposes within the articles of association.
During the transition to KBLI 2025, XPND supports businesses in auditing existing KBLI classifications, identifying obsolete codes, and recommending adjustments aligned with current operational realities. Through this approach, KBLI updates can be implemented without disrupting existing business licenses.
The outcome is not merely regulatory compliance, but a stronger legal foundation that supports sustainable growth and long term business adaptability.
