KBLI 2025: What It Means for Business Classification in Bali

In recent years, Indonesian businesses have developed rapidly — from the digital economy and content creation to the rise of factory-less goods producers. This growth has pushed the government to revise the business classification system through KBLI 2025 (Klasifikasi Baku Lapangan Usaha Indonesia), the Standard Business Classification used to group economic activities. Business owners and investors must pay close attention to KBLI, since it carries real legal consequences for licensing and business continuity — particularly for businesses that have not yet aligned their activities with the newest classification.

The introduction of KBLI 2025 can raise legal issues around business legality and licensing compliance. For business owners and investors, this matters because KBLI is now the basis for determining a business field within the Online Single Submission (OSS) system. The new arrangement also raises issues around investment structuring, particularly for foreign investment companies (PT PMA). In practice, mismatches between a company's registered KBLI and its actual business activity are common, and can expose a business to administrative sanctions — up to and including revocation of its operating licence.

KBLI 2025 was established through BPS (Statistics Indonesia) Regulation No. 7 of 2025, adopting ISIC (International Standard Industrial Classification) Revision 5 and replacing the 2020 classification. Under Government Regulation No. 28 of 2025 on risk-based business licensing, KBLI is used to determine a business's risk level, the type of licence required, and the issuance of the Business Identification Number (NIB) and standard certificates through OSS, with administrative sanctions where a business's activity doesn't match its licence. On the investment side, Minister of Investment/BKPM Regulation No. 5 of 2025 requires every PT PMA to meet a minimum investment value of Rp10 billion per five-digit KBLI code, excluding land and buildings — meaning that adding or changing KBLI codes has a direct effect on a company's capital structure.

In practice, KBLI 2025 has a significant impact on business activity in Bali. The more detailed classification means businesses can no longer rely on a single KBLI code to cover multiple activities — each activity must now be classified specifically, which directly affects the type of licence, risk level, and administrative obligations that apply.

A common example in Bali is the beach club. Under KBLI 2020, beach club operators generally used code 56101 (Restaurants), since no classification specifically addressed beach clubs at the time. Under KBLI 2025, code 56101 is no longer simply categorised as a restaurant business — it becomes "Food Service Activities in Fixed Buildings," determined more by the character of the building. Meanwhile, KBLI 2025 now accommodates a more specific classification for beach club-style activities through code 56301 (Bar Activities), covering businesses whose main activity is serving drinks — alcoholic or otherwise — for consumption on the premises. This change is meant to better reflect real conditions on the ground and avoid administrative mismatches for investors and operators running mixed food, beverage, and entertainment activities.

There is also a knock-on effect on capital structuring, particularly for PT PMA. As classifications split into more specific codes, a business that once operated under one or two codes may now need to register several — each carrying its own minimum investment requirement. In certain conditions, a business could be considered under-capitalised if its capital structure isn't adjusted to reflect the number of KBLI codes that actually correspond to its business activity.

The KBLI 2025 transition carries broad implications for business legality, licensing, and investment structure. Business owners and investors should not stop at understanding the change — they need to promptly review and adjust their KBLI, both in terms of business activity and capital structure. Doing so is key to maintaining legal certainty, regulatory compliance, and business continuity. Given the complexity of the regulations involved, engaging professional legal support can be a strategic step to ensure every decision taken is accurate, safe, and aligned with applicable provisions.