Government Issues KBLI 2025: Key Implications for Businesses and Taxpayers

The Indonesian Government has officially introduced the Indonesian Standard Industrial Classification 2025 (KBLI 2025) through Statistics Indonesia (BPS). This update is highly relevant for business actors and taxpayers, as KBLI serves as the primary reference for determining the Business Field Classification (KLU) within Indonesia’s tax administration system.

KBLI 2025 is stipulated under BPS Regulation No. 7 of 2025, which came into force on 18 December 2025. The new regulation replaces KBLI 2020 and introduces various adjustments aimed at accommodating the evolving economic landscape and emerging business models.

Understanding KBLI and Its Role

KBLI is an official classification framework used to categorize economic activities based on similar business characteristics. In practice, KBLI plays a crucial role in multiple areas, including the compilation of national economic statistics, business licensing through the Online Single Submission (OSS) system, formulation of sectoral policies, and determination of KLU for tax administration purposes.

The KBLI framework is developed in line with the International Standard Industrial Classification of All Economic Activities (ISIC) issued by the United Nations, ensuring consistency with internationally recognized classification standards.

Why KBLI Was Updated

The revision of KBLI was driven by the recognition that KBLI 2020 no longer fully captured current economic dynamics. Several key factors prompted the introduction of KBLI 2025, including the rapid growth of digital-based economic activities, the emergence of new business models such as factoryless companies, the increasing significance of climate change mitigation–related activities, and the need to align with ISIC Revision 5.

Through this update, KBLI is expected to remain relevant and provide a more accurate reflection of Indonesia’s contemporary economic structure.

Newly Recognized Business Activities Under KBLI 2025

KBLI 2025 incorporates a range of economic activities that were previously not explicitly regulated. These include platform-based intermediary services such as marketplaces and online consulting, the concept of Factoryless Goods Producers (FGP), carbon capture and storage activities, creation and distribution of digital content including streaming services, trading of crypto assets and carbon units, as well as a clearer distinction between electricity generation from renewable and non-renewable energy sources.

These additions demonstrate KBLI’s adaptation to technological advancement, digital transformation, and sustainability initiatives.

Direct Link Between KBLI and KLU Determination

For taxpayers, revisions to KBLI are particularly significant because KBLI serves as the basis for determining KLU. Pursuant to Article 2 paragraph (3) of PER-12/PJ/2022, the application of KBLI as KLU applies to individual taxpayers conducting business activities or independent professional services, undivided estates carrying out business activities, corporate taxpayers, and government institutions.

Under this regulation, KLU is defined as the classification of a taxpayer’s economic activities, covering business operations, independent professional services, and employment-related work. Consequently, differences between KBLI 2020 and KBLI 2025 such as changes in codes, consolidation, or segmentation of business activities may directly affect a taxpayer’s registered KLU.

Such changes may result in administrative KLU adjustments by the Directorate General of Taxes (DGT), updates to business activity classifications within the tax system, and broader implications for tax compliance and administration.

Potential KLU Adjustments Following KBLI Changes

Past regulatory practice indicates that updates to KBLI are often followed by corresponding KLU adjustments. When PER-12/PJ/2022 took effect in September 2022, the DGT implemented KLU changes ex officio. This authority is reaffirmed under Article 7 paragraph (2) of PER-12/PJ/2022, which allows KLU modifications in the event of changes to KBLI.

Accordingly, the implementation of KBLI 2025 may prompt similar KLU adjustments within the tax administration framework.

Key Points for Taxpayers to Consider

In light of the enactment of KBLI 2025, taxpayers should proactively ensure that their business activities are classified under the appropriate KBLI codes, monitor potential KLU updates by the DGT, update business data where classification changes occur, and assess the tax implications arising from their registered KLU.

Accurate alignment between KBLI and KLU is essential to maintain regulatory compliance and to mitigate the risk of administrative inconsistencies in the future.