Under Minister of Investment and Downstreaming / Head of Investment Coordinating Board or Menteri Investasi dan Hilirisasi / Kepala Badan Koordinasi Penanaman Modal (“MOI/BKPM”) Regulation No. 5 of 2025 on Guidelines and Procedures for Implementing Risk-Based Business Licensing and Investment Facilities through an Electronically Integrated Business Licensing System (Online Single Submission, “OSS”) (“BKPM Regulation 5/2025”), supporting Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) that generate revenue must now be included in a company’s Articles of Association. This regulation brings renewed attention to the KBLI, particularly the distinction between principal and supporting KBLI. Businesses are therefore advised to review their activities carefully and ensure alignment between their OSS registration and corporate documents.
Previously, companies were required to include only their principal KBLI in the Articles of Association under the “Purpose and Objectives” clause. Supporting KBLI could simply be registered in the OSS system without being reflected in the Articles of Association. This approach was based on the assumption that supporting activities were merely complementary and did not generate direct revenue. As a result, companies enjoyed administrative flexibility to expand or register additional activities in OSS without formally amending their constitutional documents.
In practice, however, this flexibility often led to inconsistencies between the KBLI listed in OSS and those stated in the Articles of Association. The issue became more significant when supporting activities evolved into revenue-generating business lines. Such discrepancies created compliance risks, including inaccuracies in business activity reporting, delays in submitting Investment Activity Reports / Laporan Kegiatan Penanaman Modal (“LKPM”), and potential negative findings during supervision by the MOI/BKPM.
BKPM Regulation 5/2025 seeks to resolve this issue by introducing a clearer legal standard. Article 35 paragraph (7) of BKPM Regulation 5/2025 provides that supporting KBLI which do not generate income or profit are not required to be included in the Articles of Association and are exempt from compliance with minimum investment requirements. However, once a supporting KBLI generates revenue or profit, Article 35 paragraph (2) requires the company to formally include such KBLI in its Articles of Association. This change also triggers compliance with minimum investment and capitalization requirements under Article 25 and Article 26 of BKPM Regulation 5/2025.
The financial implications are particularly relevant for foreign investment companies / penanaman modal asing. BKPM Regulation 5/2025 requires a total investment value exceeding IDR 10 billion (excluding land and buildings) per five-digit KBLI per project location, along with a minimum issued and paid-up capital of at least IDR 2.5 billion. Therefore, updating OSS data alone is no longer sufficient. Companies must also ensure that their capital structure and realized investment meet the applicable thresholds.
Given these changes, businesses should conduct a thorough review and mapping of the KBLI registered in OSS Risk-Based Approach (“OSS-RBA”) against the activities stated in their Articles of Association. If supporting activities have developed into revenue-generating operations, amendments to the Articles of Association will be necessary. Changes to the “Purpose and Objectives” clause require approval by the General Meeting of Shareholders and must be submitted for approval to the Minister of Law and Human Rights, as they constitute fundamental corporate amendments.
Ultimately, BKPM Regulation 5/2025 reinforces the need for consistency between digital licensing records and corporate constitutional documents. Supporting KBLI can no longer be treated as merely administrative entries once they generate economic value. In the current regulatory landscape, synchronization between OSS records and the Articles of Association is not optional, it is a legal necessity. Proactive identification, timely corporate action, and compliance with investment requirements will be essential to mitigate regulatory risk and ensure business continuity.
Separately, Government Regulation No. 28 of 2025 on Risk-Based Business Licensing (“GR No. 28/2025”) establishes that general updates to the KBLI system are primarily administrative. According to the MOI/BKPM, as long as there is no change in business activities or corporate actions, business owners only need to perform a system conversion within the OSS and are not required to amend their notary deeds. This streamlining is intended to support the transition to the KBLI 2025 standard, which forms part of the regular five-year international update cycle and is scheduled for full implementation by April 2026.
However, the success of this administrative transition depends heavily on the technical stability of the OSS system and its integration with other government platforms, such as SIINaS (the Ministry of Industry’s official online platform for managing, collecting, and analyzing industrial data in Indonesia). Potential system disruptions could lead to licensing delays, meaning that while some KBLI updates may be legally simple, they still require careful technical synchronization. Consequently, businesses must ensure that their digital records are consistently updated across all integrated platforms to avoid operational bottlenecks during the transition period.
Disclaimer:
This news update is prepared for general informational purposes only. The content does not constitute legal advice, a legal opinion, or counsel from IABF Law Firm. The information contained herein may not reflect the most current developments. Any quotation, distribution, or use of this information for any purpose is solely at the user’s own risk.
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Published by: IABF Law Firm
Published on: 27 February 2026
