Indonesia Revamps Business Classification with KBLI 2025: Regulatory Implications for Regulated Sectors

Indonesia’s Central Statistics Agency (BPS) has officially released the Indonesian Standard Industrial Classification (KBLI) 2025, marking a significant update to the business activity classification framework that underpins licensing, compliance, and economic reporting across the country. The new KBLI was promulgated through BPS Regulation No. 7 of 2025 on 18 December 2025, replacing the previous KBLI 2020 and taking effect immediately.

KBLI serves as the authoritative classification system for identifying, recording, and categorising economic activities in Indonesia. Beyond its statistical role, KBLI directly feeds into regulatory and licensing systems, including the Online Single Submission (OSS) system, sectoral permits, and compliance reporting. As such, the introduction of KBLI 2025 has material implications for businesses operating in regulated industries, including healthcare, medical devices, pharmaceuticals, and related sectors.

What Has Changed with KBLI 2025?

The 2025 update reflects an effort to modernise Indonesia’s classification structure in line with global developments, technological shifts, and emerging industries. The new KBLI is aligned with the International Standard Industrial Classification (ISIC) Revision 5, ensuring international comparability and relevance.

📌 Key Features of the Updated KBLI Framework

• Structural Refresh: The number of top-level categories increased from 21 to 22, enabling more detailed capture of economic activities across sectors.

• New and Refined Codes: The updated system expands classifications for digital platform services, creative and content businesses, and emerging technology sectors such as AI and carbon trading, among others.

• Wholesale Classification Amendments: For regulated wholesale businesses, including those related to medical devices and related healthcare products, the KBLI codes have been reshaped. For example, a dedicated code for Wholesale Trade of Medical Devices and Laboratory Equipment for Human Use has moved from KBLI 46691 to KBLI 46791.

Why This Matters for Regulated Industries

Although KBLI is fundamentally a statistical classification, its influence extends deeply into Indonesia’s regulatory environment, particularly through the Online Single Submission (OSS) system, which references KBLI codes when issuing business licences and permits.

For companies in regulated sectors, including those in life sciences, healthcare product distribution, and medical equipment wholesale, the new KBLI 2025 presents several immediate implications:

✔️ 1. Compliance and Licensing Alignment

Businesses must ensure their registered KBLI codes match their operational scope under the new classification because discrepancies can lead to administrative flags, delayed permit approvals, or challenges during audits.

✔️ 2. Transition and Update Requirements

A six-month transition period applies after enforcement, meaning businesses have until 18 June 2026 to adjust their KBLI codes in the OSS system and corporate documents to reflect the revised framework.

✔️ 3. Regulatory and Operational Risk

Failure to align the company’s activities with the new KBLI, particularly for regulated wholesale trade or health-sector operations, can result in:

• Licensing inconsistencies or delays

• Misalignment with OSS-based compliance checks

• Reporting errors to government agencies

• Potential administrative sanctions

Strategic Considerations for Businesses

Given the foundational role of KBLI codes in Indonesia’s licensing and regulatory ecosystem, proactive adjustment and strategy are essential:

🔹 Review and Reclassify Activities

Map existing KBLI designations to KBLI 2025 to ensure accurate representation of your operational footprint.

🔹 Align OSS and Regulatory Filings

Update business profiles, OSS licensing data, and sector-specific permits to reflect new KBLI codes before the mandatory deadline.

🔹 Coordinate Across Compliance Functions

Because KBLI intersects with tax reporting, industry permits, statistical surveys, and investment filings, alignment should be integrated into holistic compliance planning.

Looking Ahead

Indonesia’s KBLI 2025 underscores the evolving nature of its business and regulatory landscape, particularly in response to digital transformation, climate policy priorities, and global classification standards.

For regulated industries, including medical devices and healthcare products, early recognition of KBLI implications can help maintain regulatory certainty, licence continuity and operational resilience through 2026 and beyond.

At ARQon, we continue to monitor updates across regional regulatory environments to support stakeholders in anticipating compliance impacts and planning strategic regulatory actions.