Two Concepts of Changes in the 2025 KBLI Codes

Riyatno, Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/Investment Coordinating Board (Badan Koordinasi Penanaman Modal– “ BKPM ”), stated that the changes to the 2025 Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia– “ KBLI ”) codes will have a significant impact on business licensing. These changes are implemented through two approaches, namely the Many-to-One and One-to-Many concepts.

“The impact of these KBLI changes can be seen from three aspects: first, the legal status of business entities; second, business legality; and third, investment,” explained Riyatno.

Furthermore, Riyatno explained that the Many-to-One concept, which combines several KBLI codes into a single KBLI code, is considered capable of providing convenience for business actors while remaining aligned with international standards. Conversely, the implementation of the One-to-Many concept, which splits a single KBLI code into multiple codes, may impact the business actors due to the need for adjustments, including the potential addition of investment value.

One example of the application of the One-to-Many concept can be seen in the transition from KBLI 2020 to KBLI 2025 concerning Carbon Capture and Storage (“ CCS ”) activities. Previously, CCS activities were covered under a single code regulating remediation and other waste and garbage management activities. In KBLI 2025, this code is divided into three separate codes, namely: 1) Carbon capture activities proposed by the Ministry of Industry; 2) Carbon storage activities proposed by the Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral– “ ESDM ”); and 3) Remediation and other waste and garbage management activities.