Indonesia introduces KBLI 2025: Key changes to business classification framework

KBLI 2025 provides a significant structural overhaul compared to KBLI 2020. It adopts the principles of “one-to-many” and “many-to-one”, meaning certain KBLI codes have been split or consolidated. This restructuring has resulted in more refined and reallocated headings, most notably the division of the Information & Communication category into two distinct sectors:

• Category J – Activities related to publishing, broadcasting, and content production & distribution; and
• Category K – Activities covering telecommunications, computer programming or consultancy, computing infrastructure, and information services.

Introduction of new business activities

KBLI 2025 accommodates emerging business models across various sectors, reflecting technological advancements and industry trends. Below are some notable additions:

Infrastructure, Energy, Resources, and Projects

For the first time, KBLI 2025 introduces dedicated codes for Carbon Capture and Storage (“CCS”) activities:

• 39001 – Carbon Capture Activities: Encompassing services that prevent CO₂ emissions from industrial sources through technologies such as pre-combustion, post-combustion, oxy-fuel, and direct-air capture. This includes separation, compression, and temporary storage prior to transport.
• 39002 – Carbon Storage Activities: Covering exploration, injection, and permanent geological storage (including depleted oil and gas fields, saline aquifers, coal seams, basalt formations, both onshore and offshore), as well as storage support services on a contractual basis.

This marks a clear distinction from KBLI 2020, where CCS activities were not explicitly classified. However, Carbon Utilisation (as part of CCUS) remains without a specific KBLI code under the 2025 framework.

It is important to note that even though KBLI 2025 provides clarity on CCS activities, specific legal frameworks governing CCS are currently limited. Currently, CCS is regulated under Presidential Regulation No. 14 of 2024 on Carbon Capture and Storage Activities and Minister of Energy and Mineral Resources Regulation No. 2 of 2023 on Carbon Capture, Storage, and Utilisation in upstream oil and gas operations, with no further discussion on whether there are any new laws and regulations planned to accommodate CCS/CCUS activities.

Technology

With growing interest in data centre activities in Indonesia and government initiatives to attract investment in this area, KBLI 2025 introduces a new classification:

63102 – Computing Infrastructure, Hosting, and Related Activities: This category covers the provision of computing infrastructure and hosting services, including cloud computing solutions such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). It also includes web hosting, streaming hosting, application hosting, mainframe facilities, data centre colocation, electronic data storage for restricted access, and other computer data storage services.

In KBLI 2020, provision of data centre activities was not specifically accommodated under any codes. However, in practice we note that providers of data centre activities relied on KBLI 63112, which is described as follows:

63112 – Hosting Activities and Related Activities: This category covers group of activities that includes service activities related to the provision of hosting infrastructure, data processing services and related activities, and hosting specializations such as web hosting, streaming services, and application hosting. It also includes cloud computing storage.

Under KBLI 2020, KBLI 63112 covered activities related to data processing and hosting but did not specifically address data centre operations. In contrast, KBLI 2025 introduces KBLI 63102, which explicitly encompasses computing infrastructure, hosting, and related activities, including cloud computing services, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and data centre colocation. Thus, KBLI 63112 is no longer listed under KBLI 2025, suggesting that KBLI 63102 effectively replaces KBLI 63112, given the similarity in scope and the expanded description of activities under the new code.

Transitional period and practical implications

BPS Reg. 7/2025, enacted on 18 December 2025, provides a six-month transitional period for businesses holding KBLI 2020 codes to comply with KBLI 2025. During this grace period, companies should:

• Audit existing KBLI codes to determine whether they fall under consolidated or split classifications.
• Assess licensing and reporting obligations:

• A consolidation may reduce the number of KBLI codes, potentially lowering minimum investment thresholds for foreign investment companies and simplifying Investment Activity Report (LKPM) filings (as LKPM is submitted per KBLI code).
• A split may increase the number of required codes, necessitating updates in the Online Single Submission (OSS) system and possibly triggering new licensing requirements.

As of 21 January 2026, the Ministry of Investment and Downstream Industry (“MIDI”) has yet to update the OSS system to support the newly issued KBLI 2025. According to MIDI officials, the rollout of this update depends on the issuance of implementing regulations by the respective supervising authorities for each business sector. With these regulations still pending, the expected timeline for the OSS system's transition and the practical impact of the KBLI 2025 remains unclear.

Key takeaways for businesses

KBLI 2025 is more than a mere code update, it is a structural transformation that will impact licensing, reporting, and administrative compliance. Immediate priorities include:

• Reviewing current KBLI portfolios;
• Planning OSS updates within the six-month window; and
• Reassessing permits where code splits create new obligations.

Failure to act promptly may result in administrative sanctions and compliance risks.

Why this matters?

The introduction of KBLI 2025 reflects Indonesia’s commitment to modernising its business classification framework in line with global trends. For businesses, this is an opportunity to future-proof operations, ensure regulatory compliance, and leverage new classifications for strategic growth.

Authored by Mochamad Kasmali, Karina Antonio, Ayu Prameswari, and Jauzaa Apriliano.