Indonesia Updates Business Classification to Boost Trade Competitiveness

RRI.CO.Id, Jakarta - Indonesia’s Minister of Trade, Budi Santoso, reaffirmed the government’s commitment to supporting the implementation of the 2025 Indonesian Standard Industrial Classification (KBLI). He made the statement in Jakarta on Thursday, April 30, 2026.

“The refinement through KBLI 2025 is a concrete step to strengthen the national trade structure so it becomes more adaptive to evolving business models,” Budi Santoso said. He urged businesses to adjust to the new classification to ensure smoother operations.

The KBLI 2025 is regulated under a statistical decree issued in December 2025, with a six-month transition period. It serves as a key instrument for risk mapping, licensing, and determining sectoral authority under Indonesia’s risk-based business licensing framework.

According to the minister, the trade sector is undergoing significant transformation driven by digitalization, new business models, and changing distribution patterns. “Business classification must keep pace with these developments so policies remain relevant,” he said.

KBLI 2025 incorporates new sectors such as the digital economy, artificial intelligence, and content creation. It also includes emerging areas like carbon capture and storage, as well as innovative business models such as factoryless goods producers.

In the trade sector, updates include adjustments to classifications reflecting new business formats, including coworking spaces and modern retail systems. Changes also restructure distribution categories, including separating motor vehicle and spare parts trade into wholesale and retail segments.

The updated classification also introduces major changes in e-commerce, removing the need for a separate category for online trade. Instead, digital platforms are classified as intermediation services within their respective sectors, simplifying the overall system.

“With a simpler yet more comprehensive classification, businesses can more easily determine their activities, while the government can design more targeted policies,” Budi Santoso said. He added that the system was developed through collaboration with industry stakeholders to reflect real market conditions.