KBLI 2025: Indonesia's New Business Classification — What It Means for Bali Property Owners

On March 25, 2026, three Indonesian ministers — the Minister of Investment and Hilirisasi (BKPM), the Minister of Justice, and the Head of the Central Statistics Agency (BPS) — signed a joint circular letter (Surat Edaran Bersama) that spells out exactly how Indonesia's new business classification system will roll out.

The document is called SEB No. 4.S / M.HH-1.HH.04.02 / 1 Tahun 2026, and it governs the implementation of KBLI 2025 across the OSS permitting platform and the Ditjen AHU corporate registry.

If you own property in Bali and rent it out — or you're thinking about buying — here's what this means in plain language.

What Is KBLI and Why Does It Matter?

KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia — Indonesia's Standard Industrial Classification of Business Activities. Think of it as the master codebook that assigns every business in Indonesia a numeric code describing what it does.

When you register a company through OSS or file your company deed through a notary, you select KBLI codes that match your business activities. Those codes determine:

• Which permits you need (NIB, Sertifikat Standar, Izin)
• What risk level your business falls under (low, medium-low, medium-high, or high)
• What regulations apply to your specific activity

Indonesia has been using KBLI 2020 since the OSS-RBA system launched. Now, the government has mandated an update to KBLI 2025, established through BPS Regulation No. 7 of 2025.

What's Actually Changing?

The KBLI 2025 update is primarily a reclassification — some codes get renumbered, some get split into more specific categories, and some get consolidated. The SEB describes three conversion models:

Model 1: One-to-Many

A single KBLI 2020 code splits into multiple KBLI 2025 codes. For example, one broad activity category now becomes three distinct ones. The system needs to determine which new code matches your actual business.

Model 2: Many-to-One

Multiple KBLI 2020 codes merge into a single KBLI 2025 code. Several previously separate activities are now classified under one code.

Model 3: One-to-One

A KBLI 2020 code maps directly to a single KBLI 2025 code. The code number changes, but the activity description stays the same. This is the simplest conversion — and the most common.

The Eight Key Rules from the Joint Circular

Here's what the SEB actually establishes:

What This Means for Bali Villa Owners

If you own a villa running short-term rentals under KBLI 55130 (Pondok Wisata) or KBLI 55193 (Vila), this circular does not change your compliance path.

Your action items in order of priority:

1. March 31, 2026 — Ensure your property has valid NIB and Sertifikat Standar to avoid delisting from booking platforms
2. Before June 18, 2026 — Check whether your current KBLI code will convert cleanly under the new system
3. Only if you're changing business activities — Work with your notary to update your company deed with the correct KBLI 2025 codes

For most villa owners, step 3 won't apply. If your business activity description stays the same — you were renting out a villa before, you'll keep renting out a villa after — the code conversion is the system's problem, not yours.

Why This Circular Actually Matters (Even If You Don't Need to Act)

This circular confirms something important about the direction Indonesia's business licensing is heading:

The government is actively tightening the infrastructure around business licensing.

The OSS system will automatically update when new KBLI codes are mandated. Ditjen AHU will follow. Kementerian/Lembaga systems that integrate with OSS will align. What the SEB describes is a coordinated, system-wide migration with clear deadlines and accountable ministries.

This is consistent with the broader trend we've been tracking: the Indonesian government is building a more transparent, more interconnected permitting system. The Bingin Beach demolitions, the March 31 OTA enforcement, and now the KBLI 2025 migration are all pieces of the same puzzle.

When You Do Need to Worry

You should check your KBLI code situation before June if any of the following apply:

• Your KBLI code falls under a One-to-Many conversion — The system needs to pick the right new code for your business. If your company deed's description of business activities is vague, you might get assigned the wrong code.
• You're planning to change or add business activities — If you're adding property management, tour services, or any new line of business, do it under the new KBLI 2025 codes.
• Your company deed has outdated or incorrect KBLI descriptions — If the maksud dan tujuan (purpose and objectives) in your deed don't match what you're actually doing, this is the time to clean that up.
• You're setting up a new company — If you're forming a new PT or PT PMA, ask your notary whether to use KBLI 2020 (before the switch) or wait for KBLI 2025 (after June 18).

Key Legal References

For those who want to verify the source documents, the SEB references these legal foundations:

• UU No. 6/2023 — Cipta Kerja law (Job Creation, replacing the earlier Perppu)
• PP No. 28/2025 — Government Regulation on Risk-Based Business Licensing (PBBR)
• Peraturan BPS No. 7/2025 — The actual KBLI 2025 classification standard
• Peraturan Menteri Investasi No. 5/2025 — Guidelines for PBBR through OSS
• Peraturan Menteri Hukum No. 45/2025 — PT registration, changes, and dissolution procedures

The joint circular itself — SEB No. 4.S / M.HH-1.HH.04.02 / 1 / Tahun 2026 — was signed in Jakarta on March 25, 2026 by:

• Rosan Perkasa Roeslani — Minister of Investment and Hilirisasi / Head of BKPM
• Supratman Andi Agtas — Minister of Justice
• Amalia Adininggar Widyasanti — Head of Central Statistics Agency (BPS)

Frequently Asked Questions

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Concerned about whether your property permits will survive the KBLI transition? Get a personalized compliance assessment →

Make sure you're compliant before the March 31 deadline: For Property Owners →

Understand the permit requirements: Bali Villa Permit Requirements 2026 →