Businesses Urged to Update Administrative Records Ahead of KBLI 2025 Implementation

A legal practitioner has reminded business actors that the focus on updating the Indonesian Standard Industrial Classification (KBLI) 2025 should not overshadow the importance of fulfilling other administrative obligations. The government will enforce KBLI 2025 on 18 June 2026, but many businesses face rejection when updating their data through the Online Single Submission (OSS) system. Asharyanto Hermanto, Partner at BP Lawyers, explained that these rejections are generally not due to errors in selecting the new business code, but rather because companies have not met other administrative requirements, such as submitting their Annual General Meeting of Shareholders (RUPS) report and updating their Beneficial Ownership information. He noted that the enforcement of KBLI 2025 has revealed that many companies have long neglected their legal and administrative foundations, treating them as a low priority. Hermanto stated that the habit of postponing these obligations leads to greater problems, including increased processing costs and the risk of licensing blockages when legal data is inconsistent. He explained that while KBLI, annual reports, and Beneficial Ownership are distinct obligations, they are interconnected within the government’s administrative system. The OSS system verifies the consistency of all corporate legal information when a change request is submitted, meaning non-compliance in one area can trigger a rejection. Hermanto urged business actors to change their perspective on corporate legal compliance, moving away from a reactive approach of only addressing issues when necessary. He emphasised that administrative compliance must be viewed as a unified whole, not a list of separate tasks to be completed at will. Companies that have been established for a long time but have never reviewed their corporate administration are the most vulnerable to facing these obstacles. He concluded by advising businesses not to wait until their OSS application is rejected before completing their administrative obligations, as proactive compliance is always cheaper, faster, and less stressful.