Indonesian Minister of Law, Supatman Andy Aktas, announced that the government will facilitate the implementation of the Economic Activity Classification (KBLI) for 2025 through an automatic conversion system. This system will allow business owners to change KBLI codes without needing to alter the type of activity, thereby expediting administrative procedures.
Aktas explained that the new system will streamline processes through the General Law Administration (AHU) and the Online Single Submission (OSS) system. Business owners can benefit from the automatic conversion of codes, which reduces administrative burdens.
Event Details
The minister indicated that the government offers two options to facilitate the implementation of KBLI 2025: automatic conversion and manual modification. If business owners wish to expand or change their activities, they will need to make adjustments to their legal registration according to applicable requirements.
Aktas confirmed that the state aims to simplify procedures, with automatic conversions being handled electronically, while those changing their activities must follow legal processes to ensure the legitimacy of their operations.
Background & Context
This step is part of the Indonesian government's efforts to update the economic activity classification system, as the rapidly changing economy necessitates an updated KBLI to keep pace with market changes. In recent years, new sectors have emerged that were previously unknown, prompting the need to revise classifications to meet the demands of the modern economy.
Amelia Adininggar Widyasanti, head of the Indonesian Statistics Office, noted that updates to the KBLI will enhance legal transparency and facilitate business for all stakeholders, reflecting the government's commitment to providing a conducive investment environment.
Impact & Consequences
The implementation of KBLI 2025 is expected to boost investments in Indonesia, as it will provide a clearer legal framework for investors. Additionally, the automatic conversion of codes will reduce the time and effort required to update records, thereby enhancing the competitiveness of the Indonesian market.
This initiative is part of the government's strategy to attract both foreign and domestic investments, aiming to create a more flexible and transparent business environment, which contributes to sustainable economic growth.
Regional Significance
Indonesia's experience in updating its economic activity classification system serves as a model that Arab countries can benefit from. With rapid changes in the global economy, Arab nations need to update their economic systems to meet market demands.
Arab countries can draw lessons from this experience by adopting similar systems to facilitate legal procedures and enhance the business environment, which will help attract investments and achieve sustainable development.
The implementation of KBLI 2025 in Indonesia represents a significant step towards improving the business environment and enhancing investments. Through automatic conversion and continuous updates, the Indonesian government seeks to create a more competitive and transparent economic environment.