For anyone starting a business in Indonesia, KBLI may initially look like just another administrative requirement.
You register your company, obtain your NIB, enter some codes into the OSS system, and move on.
In reality, choosing the right KBLI is much more important than it may seem.
One of the things we often see is that business owners focus heavily on the company name, registered address, capital, and NIB, while the actual business activities are treated as an afterthought.
That can become a problem later.
So, what exactly is KBLI, and why does it matter?
What Is KBLI?
KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, or the Indonesian Standard Industrial Classification.
In simple terms, KBLI is the classification system used in Indonesia to identify and categorize different types of economic activities.
The classification is issued by Badan Pusat Statistik (BPS), Indonesia’s Statistics Agency.
The latest classification is KBLI 2025, which replaced KBLI 2020. It was introduced to reflect the way the Indonesian economy continues to change, including the growth of digital businesses, new service models, digital content, renewable energy, environmental activities, and other emerging areas of the economy.
So, KBLI is not simply a random five-digit number.
At a basic level, it answers a very important question:
“What does this business actually do?”
That answer becomes part of the company’s business and licensing structure.
Why Is KBLI Important When Registering a Business Through OSS?
When a business is registered through Indonesia’s Online Single Submission (OSS) system, the business activities need to be identified.
This is where KBLI becomes important.
Different business activities may have different risk levels and licensing requirements. Therefore, the KBLI selected can affect the type of business licensing requirements that apply.
This is why choosing a KBLI simply because its title “sounds right” is not always a good idea.
The actual description of the business activity should be reviewed.
The OSS system provides KBLI information based on codes, titles, and descriptions, and currently incorporates the KBLI 2025 classification.
KBLI Is More Than an Administrative Code
It is easy to think of KBLI as something that simply needs to be completed in order to obtain an NIB.
But for a growing business, it can become much more significant.
Imagine a company that describes itself as a consultancy but registers an activity that is actually closer to trading.
Everything may appear fine at the beginning.
Then the business grows.
The company wants to enter a corporate contract, apply for financing, participate in a tender, add another business activity, obtain an additional licence, or work with an investor.
Suddenly, the question becomes:
Does the company’s registered business activity actually match what the company is doing?
That is why KBLI should be selected based on the real business activity, not simply the closest-looking description.
What Is the Difference Between KBLI and NIB?
KBLI and NIB are related, but they are not the same thing.
NIB (Nomor Induk Berusaha) is the Business Identification Number issued through the OSS system.
KBLI, on the other hand, describes the business activities carried out by the company.
A simple way to understand it is:
NIB = business identification
KBLI = business activity classification
Both are important parts of the business registration and licensing process.
How Should You Choose the Right KBLI?
Choosing a KBLI is not always as simple as looking at the name of your business.
For example, the word “agency” can describe many different types of businesses.
An agency could provide marketing services, travel services, recruitment services, consulting, creative services, technology services, or something completely different.
The correct classification may therefore be different for each business.
Before selecting a KBLI, it helps to ask a few practical questions:
What exactly are you selling?
Is it a physical product, a professional service, consulting, an online service, a commission-based service, or something else?
Who are your customers?
Are they individual consumers, companies, tourists, investors, government institutions, or another group?
How does the business generate revenue?
Do you earn money from selling products, providing services, subscriptions, commissions, project fees, or another model?
Are there additional business activities?
For example, a company may primarily provide consulting services but also conduct training, digital services, trading, or other activities.
Understanding the actual business model makes it much easier to identify the appropriate KBLI.
Can One Company Have More Than One KBLI?
In practice, a company can have more than one business activity, provided those activities are appropriate for the company’s corporate purpose and comply with the applicable requirements.
This can be useful for businesses that already have plans to expand.
For example, a company may start with business consulting and later add training, digital services, or another related activity.
Planning the company’s business activities properly from the beginning can make future expansion easier.
However, having more KBLI codes does not automatically mean having a better business structure.
Adding numerous codes simply “just in case” can create unnecessary complexity.
The goal should not be to have as many KBLI codes as possible.
The goal is to have the right KBLI codes for the business you actually operate and plan to develop.
KBLI 2025 and Its Implementation in OSS in 2026
This is particularly relevant for business owners in 2026.
BPS officially released KBLI 2025 in December 2025 as an update to KBLI 2020. The government has clarified that the implementation of KBLI 2025 does not automatically require existing businesses to obtain new business licences.
Where there is no substantive change in the business activity, the relevant KBLI adjustment may be handled through the government’s conversion mechanism and, in certain circumstances, automatically through the OSS system.
However, if there has been a substantive change in the company’s business activities, including changes to its corporate purpose or scope of activities, an adjustment through OSS and, where relevant, corporate administration may be required.
This is one reason existing business owners should not simply rely on older KBLI 2020 information without checking the current classification.
Common Mistakes When Choosing a KBLI
From our perspective, several mistakes are quite common.
1. Choosing a code because the title sounds similar
The title may look appropriate, but the detailed activity description may be different.
2. Copying another company’s KBLI
Two companies may appear to operate in the same industry but actually have different business models.
3. Adding too many KBLI codes
More codes do not necessarily make a company more flexible.
4. Ignoring the company’s main activity
The classification should reflect what the company actually does and intends to do.
5. Forgetting about licensing requirements
Some activities may have additional requirements depending on their nature and risk level. The KBLI should therefore be reviewed together with the relevant OSS licensing information.
Why Does KBLI Matter as a Business Grows?
When a business is very small, an incorrect business classification may not seem like a major issue.
But as the company grows, the importance of having a properly structured legal profile becomes more obvious.
A company may eventually want to:
- open a corporate bank account;
- work with larger companies;
- participate in tenders or projects;
- apply for financing;
- add new business activities;
- obtain additional licences;
- expand into another sector;
- work with investors; or
- restructure its business.
At that stage, having a company profile that accurately reflects the actual business becomes increasingly important.
That is why we believe KBLI should not be treated as a simple administrative box to tick.
It is part of the foundation of the business structure.
What About Small Businesses and UMKM?
KBLI is just as important for small businesses.
Many businesses start informally. The owner is focused on finding customers, improving the product, and generating revenue.
That is completely understandable.
But once the business starts growing, proper legal and administrative structure becomes increasingly valuable.
Having an NIB does not necessarily mean that every legal or licensing requirement has been completed. Depending on the type and risk level of the business activity, additional requirements may apply.
So instead of only asking:
“How do I get an NIB?”
Business owners should also ask:
“Is my business activity registered correctly?”
That second question can be much more important in the long term.
What About Foreign Investors and PMA Companies?
For foreign investors and companies established as PMA (foreign investment companies), selecting the appropriate business activities should be approached carefully.
The issue is not simply finding a KBLI number.
It is also important to understand whether the chosen business sector has specific requirements, restrictions, or investment conditions.
For that reason, we believe the company formation process should ideally start with the business plan itself.
A practical sequence is:
business plan → business activities → company structure → KBLI → licensing → operations
This approach helps ensure that the company’s legal structure is built around the actual business it intends to operate.
Final Thoughts
KBLI may look like nothing more than a five-digit code inside the OSS system.
But behind that number is a description of what a business actually does.
That is why choosing a KBLI should not be treated as a quick administrative task.
For entrepreneurs starting a new business, understanding KBLI from the beginning can help avoid unnecessary problems as the company grows.
For existing businesses, the introduction of KBLI 2025 is also a good reason to review whether the business activities currently registered still accurately reflect what the company does today.
At the end of the day, good business legalisation is not simply about having documents.
It is about making sure those documents accurately represent the business behind them.
About Castle Visa & Accounting Services
At Castle Visa & Accounting Services, we assist business owners, entrepreneurs, investors, and companies in Indonesia with business establishment and administrative matters, including company formation, KBLI selection, NIB and OSS registration, accounting, and other business support services.
If you are planning to establish a business in Indonesia or are unsure whether your current KBLI still matches your business activities, getting the structure reviewed before making changes can help you avoid unnecessary administrative issues later.
Castle Visa & Accounting Services
Bali-Based | Serving Local & International Clients
Website: www.castleservices.id
Email: castleservicesbali@gmail.com
WhatsApp: +62 881-0380-07987
