Foreign Ownership Rules in Indonesia: A Practical Guide for PT PMA Investors
Putranto Alliance helps foreign investors read the rules, choose the right structure, and secure the licenses and incentives needed to operate in Indonesia.
Indonesia’s business landscape continues to evolve alongside technology, sustainability initiatives, and new economic models. To reflect these changes, the government has formally updated the Standard Classification of Indonesian Business Fields (Klasifikasi Baku Lapangan Usaha Indonesia / KBLI).
On 18 December 2025, the Head of Statistics Indonesia (Badan Pusat Statistik / BPS) enacted KBLI 2025, replacing and revoking KBLI 2020. This update introduces new classifications, refines existing ones, and formally recognizes emerging industries that were previously unclassified or ambiguously regulated.
Under this new framework, all companies operating in Indonesia are required to adjust their registered KBLI classifications no later than 18 June 2026.
Putranto Alliance assists companies—both domestic and foreign-owned—in reviewing, adjusting, and aligning their KBLI classifications to ensure continued licensing validity, regulatory compliance, and operational continuity.
KBLI is Indonesia’s official system for classifying economic activities. It is aligned with the International Standard Industrial Classification of All Economic Activities (ISIC) issued by the United Nations Statistics Division.
As a standardized framework, KBLI serves multiple regulatory and administrative purposes, including:
Because KBLI forms the foundation of business licensing, any misalignment between a company’s actual activities and its registered KBLI can result in licensing issues, reporting inconsistencies, or regulatory findings.
The transition from KBLI 2020 to KBLI 2025 reflects structural shifts in Indonesia’s economy, including the emergence of new industries and evolving business models.
Key drivers behind KBLI 2025 include:
KBLI 2025 introduces a number of material changes that affect licensing and compliance:
KBLI 2025 is enacted under the Indonesian Central Bureau of Statistics (Badan Pusat Statistik/BPS) Regulation Number 7 Year 2025 concerning Indonesian Business Classification, which stipulates that:
Companies failing to update their KBLI by 18 June 2026 face risks that go beyond administrative non-compliance. KBLI is not a statistical formality; it is the legal foundation for OSS RBA licensing, sectoral permits, regulatory supervision, and reporting.
Key risks include:
In practice, KBLI misalignment is often identified during audits, financing reviews, or regulatory supervision, when corrective action becomes time-critical and operationally disruptive.
Although KBLI adjustments may appear administrative, their impact is operational and financial. KBLI classifications are used by:
A misaligned KBLI can therefore affect access to financing, regulatory approvals, and sector-specific incentives.
Updating KBLI classifications requires more than selecting a new code. Companies must assess whether:
Putranto Alliance assists companies in:
Regulatory compliance in Indonesia has evolved. KBLI alignment today sits at the intersection of licensing validity, investment reporting, and commercial credibility.
Understanding this intersection, early and correctly, often determines whether compliance remains manageable or becomes a structural obstacle.
Contact us to request assistance for your KBLI adjustment needs.
This article forms part of our ongoing insights into regulatory alignment and corporate risk management under Indonesia’s evolving licensing framework.
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Putranto Alliance helps foreign investors read the rules, choose the right structure, and secure the licenses and incentives needed to operate in Indonesia.
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