7 Steps by BPS & Ministry of Investment to Streamline National KBLI by May 2026

Indonesian business operators, from SMEs to large investors, frequently face significant challenges in understanding and applying the National Business Classification System (KBLI). The complex system and periodic updates often cause confusion, slow down permit processes, and even lead to misclassification that could result in penalties. This directly creates regulatory uncertainty that hinders the national investment climate. Many entrepreneurs complain of frustration due to wasted time and additional costs for legal or permit consultations. They cite convoluted bureaucracy in business classification processes, a high administrative burden, especially for resource-constrained SMEs. Unclear KBLI guidelines also affect potential investors struggling to determine the correct business classification. This situation often delays or even cancels important investment plans. Sentiment among business operators and industry associations indicates an urgent need for regulatory simplification and clearer, more accessible guidelines responsive to current economic dynamics. The Central Statistics Agency (BPS), as the main authority for KBLI, and the Ministry of Investment/BKPM, as the permit implementation body, play a crucial role in addressing this issue. Their expertise in statistical data and investment regulations is recognised as a cornerstone of the business permit ecosystem. However, the challenge lies in transforming this complexity into operational ease for businesses. Cutting Costs and Time Through KBLI Digitalisation BERNAS.id proposes an innovation: developing an interactive AI-powered KBLI digital platform. The platform would not only provide comprehensive and up-to-date guidelines but also smart search features, relevant case studies, FAQs, and accurate business classification simulations. This concept challenges BPS and the Ministry of Investment/BKPM to innovate, turning vast KBLI data into practical, accessible solutions for all stakeholders. Integration of this platform with existing business permit systems will be key to success. The platform is expected to offer online consultation services with KBLI experts. Its aim is to ensure consistent interpretation, minimise classification errors, and ultimately expedite permit processes. This is a concrete step to reduce administrative burdens and facilitate business growth across Indonesia. With this solution, business operators can focus more on innovation and development rather than getting stuck in bureaucratic maze. Unclear KBLI guidelines have significant macroeconomic impacts. They can hinder investment flows, slow real sector growth, and complicate the government’s collection of accurate economic data for national development planning. BPS data shows Indonesia’s economic growth reached 5.08% in Q4 2025, but this potential could be hindered if the investment climate remains unfavourable. The digital economy’s contribution to GDP was recorded at 8.2% in 2025, highlighting the urgency of adopting technology in governance. A digital KBLI solution could act as a catalyst to accelerate this contribution. Efficiency in Governance and National Competitiveness KBLI information gaps could lower Indonesia’s business ease ranking in the eyes of international investors and hamper economic competitiveness. According to the Governance Efficiency Index (Alchem1st AI) in Q1 2026, the national average score stands at 78.4. Local businesses, especially SMEs, are highly vulnerable to operational delays and increased compliance costs. They require intuitive and affordable solutions. BERNAS.id believes that an AI-based KBLI digital platform can create a more transparent and efficient business environment in Indonesia. This is not just about permits, but about building an ecosystem that supports innovation and sustainable economic growth. Business operators will be able to allocate time and resources to product and service development rather than being burdened by complex regulations. This initiative can also foster new talents capable of adapting to technology. The Bernas 100 Sentiment Index shows that positive sentiment towards business ease will rise significantly if the government provides clearer and more accessible regulatory guidelines. For large corporations listed in the Bernas 100, efficiency in KBLI classification means faster expansion and reduced