Indonesia has officially updated its business classification system through BPS Regulation No. 7 of 2025, introducing KBLI 2025 as a replacement for KBLI 2020. This update reflects the government's effort to align business classifications with evolving economic activities and emerging industries.
According to the Head of Statistics Indonesia (BPS), Amalia Adininggar Widyasanti, many new economic activities had previously operated without clear classification. KBLI 2025 aims to address this gap by providing clearer categorization for modern business models, including digital and innovation-driven sectors.
The regulation was issued in December 2025, with a transition period of up to six months, meaning businesses are expected to adjust by June 18, 2026.
Key Changes Introduced in KBLI 2025
KBLI 2025 introduces several structural and conceptual updates compared to KBLI 2020:
Alignment with international standards
The classification now refers to ISIC Revision 5 (International Standard Industrial Classification), replacing the previous ISIC Revision 4 framework.Expanded business categories
The number of main categories has increased from 21 (A–U) to 22 (A–V).More specific classification approach
Business activities are categorized in a more detailed and precise manner, reflecting real operational practices.Inclusion of emerging industries
New economic activities are now formally recognized, including: Artificial Intelligence (AI), Content creation, Crypto assets, Carbon capture and storage, and Factoryless Goods Producers (FGP).Code restructuring (many-to-one and one-to-many changes)
Some business codes have been merged, while others have been split to better reflect current business models.
Impact on the Cosmetics and Pharmaceutical Trading Sector
One of the notable changes under KBLI 2025 affects the classification of pharmaceutical and cosmetic trading activities. For businesses involved in cosmetic distribution, understanding both the new KBLI codes and Indonesia cosmetics notification requirements is essential for market access.
Under KBLI 2020, these activities were divided into multiple codes, such as:
46442 (traditional medicine)
46443 (cosmetics)
46448 (pharmaceutical raw materials)
Under KBLI 2025, these classifications are consolidated into a single code: KBLI 46441 – Wholesale of Pharmaceutical Preparations for Human Use
This code now covers:
Medicines and traditional medicines
Cosmetic products
Quasi drugs
Health supplements
Pharmaceutical raw materials
This consolidation reflects a more integrated approach, recognizing that raw materials and finished products often fall within the same business ecosystem.
Implications for Business Licensing (OSS-RBA System)
Changes in KBLI classification directly affect Indonesia's risk-based licensing system (OSS-RBA) under Government Regulation No. 28 of 2025.
Business risk levels are categorized into: Low risk, Medium risk, and High risk.
Each level determines licensing requirements:
Low risk: Business Identification Number (NIB) only
Medium risk: NIB + Standard Certificate
High risk: NIB + Business License
As KBLI codes are updated, the risk classification may also change, potentially impacting licensing obligations and compliance requirements.
Do Companies Need to Amend Their Articles of Association?
A key clarification was provided through a Circular Letter No: B-69.S/PI.08/A.1/2026 issued on March 27, 2026 by the Ministry of Investment/BKPM, Ministry of Law, and BPS.
Under this circular, KBLI 2020 codes will be automatically converted into KBLI 2025 in the OSS system. This means no amendment to the company's Articles of Association is required, as long as the actual business activities remain unchanged.
Recommended Actions for Businesses
To ensure compliance and avoid disruption, businesses—especially those in cosmetics and pharmaceutical trading—should take the following steps:
Review business activities
Ensure that actual operations align with the updated KBLI 2025 descriptions.Verify KBLI mapping in OSS-RBA
Check whether existing KBLI codes have been correctly converted.Assess licensing impact
Identify whether changes in KBLI affect risk classification or licensing requirements.Prepare supporting documentation
Ensure consistency between business activities, licenses, and operational practices.Plan KBLI selection for new business setup (especially cosmetic distributors)
For companies planning to establish a business as a cosmetic wholesaler, it is important to directly refer to KBLI 2025 when determining business classification.Seek expert legal advice if needed
Particularly for companies with complex or multi-sector operations.
For more information on KBLI 2025 compliance or Indonesia cosmetics notification, please feel free to contact us at customer@reach24h.com.
