Home Blog Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2026 Business Licenses | Business Setup | Company Registration Indonesia KBLI: An Ultimate Guide for Foreign Investors in 2026 InCorp Editorial Team 1 July 2026 12 minutes reading time Table of Contents Key Takeaways KBLI 2025 vs. KBLI 2020: A Practical Comparison What is KBLI in Indonesia? Why KBLI Matters for Foreign Investors KBLI 2025: What Changed? How KBLI Affects OSS-RBA and NIB KBLI and PT PMA Registration When Should Companies Review Their KBLI? What Happens If the Wrong KBLI is Used? Obtain Your KBLI 2025 with InCorp Frequently Asked Questions As of 18 December 2025, KBLI 2025 is the official and current version of Indonesia’s business activity classification. It replaces KBLI 2020 under BPS Regulation No. 7 of 2025 and introduces structural and substantive changes that may affect companies registered or operating in Indonesia. Now that the 18 June 2026 implementation deadline has passed, companies can no longer treat KBLI 2025 as a future update. Businesses should review their registered KBLI codes, OSS data, licenses, and corporate documents to identify any mismatch that may affect licensing, foreign ownership, risk classification, or future corporate actions. This guide explains what KBLI is, what changed under KBLI 2025, how it affects foreign investors and PT PMA registration, and what companies should do next. Key Takeaways KBLI is the official business activity classification system in Indonesia. It determines OSS licensing requirements, NIB issuance, risk level, foreign ownership rules, and sectoral approvals for every registered company. KBLI 2025, issued under BPS Regulation No. 7 of 2025 on 18 December 2025, replaces KBLI 2020 and is the classification system that all companies in Indonesia must align with. KBLI 2025 expands coverage from 21 to 22 categories and introduces specific classifications for AI, carbon capture and storage, data centers, digital platforms, and cryptocurrency. Choosing the wrong KBLI code can delay licensing, restrict business activities, prevent sectoral approvals, and create compliance issues during due diligence or regulatory audits. KBLI 2025 vs. KBLI 2020: A Practical Comparison FeatureKBLI 2020KBLI 2025Governing RegulationBPS Regulation No. 2 of 2020BPS Regulation No. 7 of 2025Effective Date202018 December 2025International StandardISIC Revision 4ISIC Revision 5Number of Categories21 (A to U)22 (A to V)Digital Economy CoverageLimitedExpanded: AI, digital platforms, carbon trading, cryptoData Centre ClassificationGeneral hosting code (63112)Dedicated infrastructure code (63102)Pharmaceutical WholesaleMultiple narrow codesConsolidated into 46441 and 46442Real EstateUnified classificationSplit: development and rentalCode RestructuringNot applicableOne-to-many and many-to-one splitting/consolidationOSS Compliance RequirementKBLI 2020 used for NIB and licensingMust align by 18 June 2026 What is KBLI in Indonesia? KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia — the Indonesian Standard Industrial Classification. It is issued by the Central Statistics Agency (BPS) and serves as the official reference for classifying business activities across Indonesia. Every business registered in Indonesia is assigned one or more five-digit KBLI codes. These codes determine: What a company is legally permitted to do What licenses and permits it must obtain Its risk level under the OSS-RBA system Whether foreign ownership is restricted or permitted What sectoral approvals are required from line ministries How the company is classified for tax and statistical reporting KBLI is not only a statistical tool. In practice, it functions as the regulatory backbone of Indonesia’s business licensing system. READ MORE:A Complete Guide for Registering a Company as ForeignersIndonesia Improves Foreign Investment Landscape with A Positive Investment List Why KBLI Matters for Foreign Investors For foreign investors setting up a PT PMA (Penanaman Modal Asing — foreign-owned limited liability company), the KBLI code is one of the most consequential decisions made during incorporation. Here is how KBLI affects operations: PT PMA Registration The KBLI code must be declared during PT PMA incorporation. It defines the company’s business scope and must align with the articles of association. NIB Application The NIB (Nomor Induk Berusaha) issued through OSS is linked directly to the declared KBLI codes. A mismatched code creates inconsistencies from the start. OSS-RBA Risk Level Each KBLI code carries a risk classification (low, medium-low, medium-high, or high), which determines how many licenses the company must obtain before operating. Business Licenses Some KBLI codes require only an NIB. Others require a standard certificate, a verified standard certificate, a business license, or specific sectoral approvals. Foreign Ownership Review Some KBLI codes are subject to restrictions under Indonesia’s Positive Investment List. Selecting a restricted code may limit foreign ownership or trigger additional requirements. Sectoral Permits Activities in healthcare, pharmaceuticals, food and beverage, energy, telecommunications, and financial services each require sectoral approvals tied to specific KBLI codes. Tax and Administrative Records KBLI codes inform how the company is classified for corporate tax, VAT, and other administrative filings. Business Expansion Companies adding new products, services, or locations typically need to update or add KBLI codes in advance of the expansion. READ MORE:A Complete Guide for Registering a Company as ForeignersIndonesia Improves Foreign Investment Landscape with A Positive Investment List KBLI 2025: What Changed? KBLI 2025 has been in force since 18 December 2025 under BPS Regulation No. 7 of 2025, replacing KBLI 2020. The update aligns Indonesia’s business classification system with ISIC Revision 5. It introduces more specific codes for newer sectors, including artificial intelligence, cryptocurrency-related activities, carbon capture and storage, cloud infrastructure, data centers, and digital services. Key Changes KBLI 2025 expands the classification from 21 to 22 business categories. One major change is the split of the previous information and communication category into separate groups for media-related activities and ICT services. Some KBLI 2020 codes have also been split, merged, or reallocated. This means a company’s existing code may no longer fully match its actual business activity. What Companies Should Do Now The KBLI 2025 alignment deadline has already passed. Companies should now review their KBLI codes in OSS, licenses, and corporate documents to determine whether any adjustments are needed. Existing business licenses remain valid, but manual updates may be required if there is a substantive change to the company’s business scope or activities. KBLI 2025 New Activity Classifications SectorKBLI 2020 ReferenceKBLI 2025 ClassificationBusiness ImpactData centers/cloud63112 (data processing and hosting)63102 (computing infrastructure, hosting, IaaS, PaaS, colocation)Companies must check whether registered code is still validInformation & communicationSingle Category JSplit: Category J (publishing, media) and Category K (ICT services)Companies must identify which category appliesCarbon capture and storageNot specifically classifiedNew specific CCS classificationCCS companies now have a dedicated codeArtificial intelligenceNot specifically classifiedNew AI-related activity codesAI companies can register with a purpose-built codeCryptocurrencyNot specifically classifiedNew cryptocurrency-related activity codesClearer classification options for crypto businessesReal estateSingle classificationSplit: development and rental activitiesReal estate companies must review whether both codes applyPharmaceutical wholesaleMultiple narrow codes by product typeConsolidated into KBLI 46441 and KBLI 46442Companies under multiple legacy codes must realign How KBLI Affects OSS-RBA and NIB Every company in Indonesia must register through the OSS (Online Single Submission) system. The OSS-RBA (Risk-Based Approach) system uses the declared KBLI code to assign a risk level and determine what licenses are needed before the company can operate. KBLI determines foreign investment restrictions, business risk levels, and required licenses. The issuance of KBLI 2025 directly affects whether licenses are required under OSS-RBA, the determination of business risk levels, and reporting obligations. Risk LevelWho It Applies ToLicensing RequiredLow riskSmall-scale, low-impact activitiesNIB onlyMedium-low riskActivities with limited regulatory exposureNIB + Standard CertificateMedium-high riskActivities requiring closer supervisionNIB + Verified Standard CertificateHigh riskRegulated sectors (healthcare, finance, energy)NIB + Business License + Sectoral Approval Selecting a KBLI code that carries a higher risk level than intended will increase the licensing burden before the company can operate. Selecting a code with a lower risk level than the actual activity may lead to compliance issues later. Not sure your current KBLI is correct? Talk to InCorp Indonesia for a structured review -> KBLI and PT PMA Registration When setting up a PT PMA, the KBLI code must be selected before incorporation begins. It should accurately reflect the company’s core revenue-generating activity, not a general or aspirational business scope. Articles of Association: The company’s business scope must match the declared KBLI code. Business Model: Only activities covered by the declared KBLI are permitted. Investment Plan: The KBLI must align with the investment plan submitted to BKPM. Paid-Up Capital Plan: Some KBLI codes have minimum investment thresholds. Registered Address: Some KBLI codes require a specific type of business premises. Foreign Ownership: Certain KBLI codes are subject to foreign ownership caps. Licensing Requirements: The KBLI determines which sectoral permits the PT PMA needs. Misalignment at incorporation creates a compounding problem: an incorrect NIB, an incorrect risk classification, an incorrect licensing pathway, and a potentially costly restructuring process later. READ MORE:Why Foreign Investors Should Consider Lombok for Property InvestmentMoving to and Living in Jakarta for Foreigners: A GuideHow to Easily Access The OSS Login System in Indonesia When Should Companies Review Their KBLI? A KBLI review is recommended at the following points: Initial PT PMA or company incorporation NIB application or reissuance Business expansion — new products, services, or regions Adding or changing import or export activities New factory or office registration Shareholder changes that affect foreign ownership ratios Application for a new sectoral permit Adding or changing product registration (BPOM, Ministry of Health) Transition to KBLI 2025 Proactive review prevents licensing delays and compliance gaps that are more expensive to resolve after they occur. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Newsletter Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe What Happens If the Wrong KBLI is Used? Failure to complete KBLI updates within the prescribed transition period may result in inconsistencies in OSS licensing data, delays in permit amendments or renewals, and potential complications during regulatory inspections or audits. RiskConsequenceNIB / license mismatchThe NIB reflects a different activity than the company actually conducts.OSS application delayLicensing applications are rejected or flagged due to code mismatch.No sectoral permitsLine ministries require a specific KBLI code before processing approvals.Import/export access problemsAPI-U or API-P registration requires alignment between KBLI and trade activity.Foreign ownership mismatchThe company may be operating under a code that restricts its current ownership structure.Due diligence issuesInvestors, banks, or partners will identify KBLI inconsistencies.Expansion complicationsAdding new business scope now requires more complex AoA amendment procedures. Obtain Your KBLI 2025 with InCorp Selecting, verifying, or updating a KBLI code is not a straightforward administrative task. The code has consequences across licensing, ownership, compliance, and business operations. InCorp Indonesia (an Ascentium Company) supports companies through: KBLI Review and Advisory: Identifying the correct KBLI 2025 code and confirming its alignment with your business activity, investment plan, and expansion needs. PT PMA and Corporate Document Alignment: Ensuring the selected KBLI is reflected correctly in the articles of association and updated where substantive changes are required. OSS-RBA and Licensing Support: Navigating business licensing, sectoral permits, and authority coordination based on your declared KBLI code. Unsure whether your KBLI still matches your business activity? Talk to InCorp Indonesia to review your company structure, KBLI classification, and licensing requirements before they become operational issues. Fill out the form below. Frequently Asked Questions What is KBLI in Indonesia? KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) is Indonesia’s official business activity classification system, issued by the Central Statistics Agency (BPS). It assigns each business activity a five-digit code that determines a company’s NIB, OSS licensing requirements, risk level, foreign ownership eligibility, and sectoral approvals. What is KBLI 2025? KBLI 2025 is the updated version of Indonesia’s business activity classification, issued under BPS Regulation No. 7 of 2025 and effective as of 18 December 2025. It replaces KBLI 2020 and aligns with ISIC Revision 5. All companies in Indonesia must align their registered KBLI codes with KBLI 2025. Is KBLI 2025 different from KBLI 2020? Yes. KBLI 2025 expands the classification structure from 21 to 22 categories, introduces new codes for AI, carbon capture and storage, data centers, digital platforms, and cryptocurrency, and restructures existing categories using one-to-many and many-to-one code splitting and consolidation. It also references ISIC Revision 5 instead of ISIC Revision 4. Why is KBLI important for PT PMA registration? The KBLI code selected during PT PMA incorporation determines the company’s permitted business activities, foreign ownership eligibility, OSS risk level, and the licenses required for operation. Selecting the wrong code at incorporation can delay licensing, restrict ownership, or require a costly restructuring process. Can a company have more than one KBLI code? Yes. Companies may register multiple KBLI codes—one primary and one or more secondary. Each declared code must reflect an actual business activity, align with the articles of association, and comply with the applicable licensing and foreign ownership rules. Adding codes that do not correspond to real activities can create compliance inconsistencies. What happens if I choose the wrong KBLI code? An incorrect KBLI can result in an NIB that does not match the actual business activity; rejection or delay of OSS licensing applications; inability to apply for required sectoral permits; problems obtaining import or export permits; foreign ownership misalignment; issues during investor or regulatory due diligence; and complications when expanding the business scope. Does KBLI affect OSS licensing and NIB? Yes. The OSS system uses the declared KBLI code to assign a risk level and determine what licenses the company must obtain before operating. A low-risk code may require only an NIB. A high-risk code may require a business license plus sectoral approvals from line ministries. The KBLI is central to the entire OSS-RBA licensing pathway. Do existing companies need to adjust to KBLI 2025? Yes. All companies must align their existing KBLI classifications with KBLI 2025. However, if the adjustment is limited to a code number conversion without any substantive changes to business activities, the OSS and AHU systems will automatically perform the update using the official conversion table. Companies that have substantive scope changes must amend their articles of association and update their records manually. How do foreign investors choose the right KBLI? Foreign investors should: (1) define the core revenue-generating activity precisely; (2) review the official KBLI 2025 description for matching codes; (3) check the OSS-RBA risk level and associated licensing requirements; (4) confirm whether the code is subject to foreign ownership restrictions; (5) align the code with the articles of association; and (6) verify whether additional sectoral permits are required. Working with a local advisory firm can reduce the risk of selecting an incorrect code. Can InCorp Indonesia help review KBLI and business licenses? Yes. InCorp Indonesia assists companies with KBLI selection, review, and transition under KBLI 2025; PT PMA incorporation; OSS-RBA licensing; business license applications; articles of association alignment; and sectoral permit coordination across regulated industries in Indonesia. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity,... Read more Get in touch with us. 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