KBLI 2025 Is More Than Just a Code Change: Many Business Owners Misunderstand It
When they hear that KBLI 2025 will take effect on 15 June 2026, many business owners immediately assume that the update is simply about replacing old business classification codes with new ones. In reality, the changes are far more significant.
The KBLI 2025 update is not merely a revision of numbers or an administrative adjustment. The government has carried out a comprehensive restructuring of the business classification system. Several codes have been merged, others have been split into more specific categories, and some have even been removed entirely.
As a result, business owners cannot simply look for a “replacement code.” They must also determine whether their actual business activities still align with the latest classification framework.
What Has Changed in KBLI 2025?
1. The Number of Business Categories Has Increased
One of the most noticeable changes in KBLI 2025 is the increase in the number of main business categories. Previously, KBLI consisted of 21 main categories. Under KBLI 2025, this number has increased to 22 categories. This change reflects adjustments made to accommodate the evolution of business models and increasingly diverse economic activities.
The addition of a new main category is not merely a statistical change. The government aims to classify business activities more accurately so that the system can better reflect the realities of a modern and rapidly evolving economy. Some business activities that were previously grouped within broad categories can now be classified under categories that more closely match their actual characteristics.
For business owners, this means that a review of their business classification under the latest KBLI structure is necessary. Even if the company name or business activities remain unchanged, the classification previously used may no longer belong to the same category as it did under the earlier version.
2. The Total Number of KBLI Codes Has Decreased Significantly
Although the number of main categories has increased, the total number of KBLI codes has actually decreased. The previous KBLI version contained 1,789 codes, while KBLI 2025 contains 1,559 codes. This reduction does not mean that there are fewer types of business activities. Rather, the government has reorganized codes that were considered overlapping, overly broad, or no longer relevant.
This change demonstrates that the government is not only introducing new categories but also simplifying the existing classification structure. Many codes that previously covered similar business activities have been consolidated to create a more efficient and user-friendly licensing system.
On the other hand, some codes that were considered too general have been divided into more specific classifications. As a result, business owners should not assume that every old code has a direct one-to-one equivalent in KBLI 2025. The mapping process should be carried out by reviewing the full description of the business activity, rather than relying solely on the code number itself.
3. Three Key Types of Changes Every Business Owner Must Understand
One of the most common mistakes made by business owners is assuming that every old KBLI code automatically has a single, identical replacement code in KBLI 2025. In reality, this is not the case. There are three main types of changes that business owners need to understand in order to correctly identify the appropriate classification for their business activities under KBLI 2025.
- Many-to-One
In a Many-to-One change pattern, several old KBLI codes are consolidated into a single new code. This typically occurs when different business activities share similar characteristics and no longer need to be classified separately. Under this approach, business activities that previously had different codes are now grouped under the same classification. The objective is to reduce overlap and simplify the overall KBLI structure.
For business owners, it is important to verify that the business activity description stated in company documents still falls within the scope of the new code. Do not focus solely on the replacement code number; make sure you also understand the range of business activities covered by the new classification. - One-to-Many
In a One-to-Many change pattern, a single old KBLI code is divided into several new, more specific codes. This is the change pattern that requires the most attention from business owners. Previously, a business activity may have been covered by a single code. Under KBLI 2025, businesses may need to select the classification that most accurately reflects their actual activities. This type of change is usually implemented when an existing code is considered too broad and encompasses multiple business activities that, in reality, have distinct characteristics. By splitting the code into several classifications, the government can categorize businesses in a more detailed and accurate manner.
The biggest risk associated with this pattern is selecting the wrong business classification. If the chosen code does not accurately reflect the company's actual activities, the business may encounter difficulties when applying for permits, updating OSS data, or undergoing verification processes conducted by relevant authorities. - One to One
One old code is mapped directly to one new code. This is the simplest pattern because it doesn't involve any significant substantive changes. However, business owners still need to check to avoid administrative errors. While seemingly simple, a verification process is still necessary to ensure that the new code truly matches the business activities recorded in company documents. Small errors in data matching can cause administrative problems when companies apply for permits or make changes to their data later.
Why should business owners care?
Many still assume the KBLI is only necessary when establishing a company. However, the KBLI forms the basis for various important processes, such as:
- Submitting a Business Identification Number (NIB) through the OSS System.
The OSS (Online Single Submission) system identifies the type of business based on the 5-digit KBLI code you enter. If the KBLI code selected is incorrect or does not match actual activities in the field, the OSS system will not be able to issue a valid Business Identification Number (NIB) for that activity. - Determining business risk levels.
Since the implementation of the Risk-Based Approach (RBA) system, the government has mapped each KBLI code into four risk levels:- Low Risk (R): Only a NIB is required.
- Low Medium Risk (MR): Requires a NIB + Standard Certificate (self-declaration).
- High Medium Risk (MT): Requires a NIB + Standard Certificate, which must be verified by the relevant agency.
- High Risk (T): Requires NIB + Permit (full approval from the minister/governor/regent).
- Processing operational and sectoral permits.
Each KBLI has a different "Supervising Ministry" or technical agency. The Food Industry KBLI will direct you to a BPOM distribution permit or Halal Certification. The Construction KBLI will require a Business Entity Certificate (SBU). The Health KBLI requires a clinic permit from the Health Office. If the KBLI code in your NIB is incorrect, you will not be able to process these sectoral permits because the relevant ministry's system will reject data synchronization from the OSS. - Compliance of business activities with applicable regulations.
The government uses the KBLI to check whether your business is permitted to operate in a particular location. Through the OSS, the KBLI will be synchronized with the Detailed Spatial Planning Plan (RDTR) or the Conformity of Spatial Utilization Activities (KKPR). Manufacturing businesses (Industrial KBLI) will not be permitted to operate in residential zones. In addition, the Directorate General of Taxes also uses KBLI to determine your company's Net Income Calculation Norm (NPPN).
Because it serves as the foundation for various licensing processes, KBLI changes can directly impact corporate administration. If the business classification does not match the actual activities being conducted, the process of applying for new permits or updating business data can become significantly more complicated.
In some cases, KBLI discrepancies can also affect the determination of business risk levels and the licensing requirements that must be met. Therefore, understanding the 2025 KBLI update is not just a matter of operational compliance.
What should you do now?
Before making any changes to company data or processing new permits, take the following steps:
- Check whether your company's KBLI is affected by the changes.
- Identify whether your old code falls into the Many to One, One to Many, or One to One category.
- Re-match your business description with the latest KBLI.
- Ensure that your OSS data update and licensing remain aligned with current business activities.
- Consult with a professional if there are any doubts regarding business code mapping.
Do not just focus on finding a replacement number. In the 2025 KBLI, what changes is not just the code, but also how a business activity is classified. Understanding this transition early on will help companies avoid administrative errors and ensure smooth licensing processes.
Ensure that your company's KBLI complies with the latest structure. The Awan Kusuma Legalitas team is ready to assist with checking, KBLI code adjustments, and business data updates to keep you compliant with the latest regulations.
