Indonesia has introduced a significant regulatory update to its business classification system through Regulation of the Central Statistics Agency (Peraturan Badan Pusat Statistik) No. 7 of 2025, which revises the Indonesian Standard Industrial Classification (KBLI).
This update brings major structural changes to Business Code Division 68 – Real Estate Activities, replacing the previously broad classifications with more detailed and activity-specific business codes. The change directly impacts property developers, landlords, real estate operators, and property management companies, particularly in licensing and compliance under the OSS (Online Single Submission) system.
The regulation is issued by Badan Pusat Statistik (BPS) and will be used as the new reference for business registration, licensing, and statistical reporting going forward.
Background: The Previous KBLI Framework
Under the previous KBLI regime, most property-related activities were grouped into very broad classifications, often combining development, ownership, leasing, and operations under a single code.
Business Code 68111 – Real Estate Owned or Leased
This category previously covered:
- Purchase and sale of real estate
- Leasing and operation of owned or leased properties
- Residential and non-residential buildings (apartments, houses, warehouses, malls, shopping centers)
- Furnished or unfurnished residential rentals (monthly or yearly)
- Sale of land plots without development
- Development of buildings for own operation
- Operation of residential areas and movable housing sites
While practical, this structure lacked precision, making it difficult for regulators to distinguish between developers, landlords, and operators.
Similarly, Business Code 68200 – Real Estate Activities on a Fee or Contract Basis combined:
- Real estate agents and brokers
- Property management
- Valuation services
- Consulting and intermediary services
What Has Changed: A More Granular Classification System
Under BPS Regulation No. 7 of 2025, real estate activities are now clearly separated based on their economic function. This represents a fundamental shift in regulatory philosophy, aligning Indonesia more closely with international best practices.
New KBLI Structure for Real Estate Activities (Division 68)
1. Business 68111 – Residential Building and Land Development Activities
This classification now focuses exclusively on development and sale, covering:
- Purchase and sale of residential buildings (apartments, houses)
- Development of houses, flats, or apartments (furnished or unfurnished) for long-term use
- Development of residential mobile-home sites as primary residences
- Development of residential projects intended for sale.
📌 Important Note:
This KBLI is intended for property developers, not landlords or rental operators.
2. KBLI 68112 – Leasing of Owned or Rented Residential Buildings and Land
This category specifically covers:
- Leasing and operation of residential real estate
- Rental of residential properties owned or leased by the business
📌 Important Note:
Businesses that generate income from residential rentals must now use this KBLI, separate from development activities.
Fee-Based and Contractual Real Estate Services: New Distinctions
The former KBLI 68200 has been split into more targeted classifications, separating residential management from other fee-based real estate services.
3. KBLI 68292 – Residential Property Management on a Fee or Contract Basis
This KBLI covers professional management of residential properties, including:
- Supervision and coordination of residential operations
- Maintenance and repair management
- Preparation and collection of residential service charges
- Budgeting and financial planning for residential management
- Drafting and enforcement of residential house rules
📌 Important Note:
This code is intended for property management companies handling residential assets on behalf of owners.
4. KBLI 68299 – Other Fee-Based or Contractual Real Estate Activities (YTDL)
This residual category includes:
- Rent collection agencies
- Management of non-residential real estate (e.g., commercial or mixed-use properties under shared ownership)
- Real estate consultancy services related to buying, selling, or leasing
- Other real estate services provided on a fee or contract basis are not classified elsewhere.
📌 Important Note:
This KBLI applies to consultants, agents, and non-residential property managers.
Why This Update Matters for Businesses and Investors
This regulatory change is not merely administrative. It has direct implications for:
- Business licensing under OSS
- Foreign ownership structures (PMA companies)
- Compliance with sectoral regulations
- Tax classification and reporting
- Future audits and regulatory reviews
Businesses currently registered under legacy KBLI codes may be required to update or realign their business activities to match the new classifications.
Transition Timeline and OSS Deadline
Under BPS Regulation No. 7 of 2025, the updated KBLI classifications apply immediately to new businesses. Existing companies must update their KBLI registration in the OSS system by 18 June 2026 (six months from the regulation’s issuance).
Businesses that fail to complete the update by this deadline may face delays in license amendments, renewals, or future OSS approvals.
Companies are therefore advised to review their current KBLI alignment early and submit any required OSS updates well before the deadline to ensure regulatory continuity.
Regulatory Highlights
- Indonesia has introduced a more detailed, activity-based KBLI framework for real estate under BPS Regulation No. 7 of 2025.
- Real estate development, leasing, and management activities are now regulated under separate KBLI codes, replacing the previous broad classifications.
- New business registrations must apply the updated KBLI immediately, while existing companies are granted a transition period.
- All existing businesses must complete KBLI updates in the OSS system by 18 June 2026 (six months from the issuance of the regulation).
- Failure to align KBLI classifications within the transition period may result in licensing delays or regulatory complications.
How We Can Assist
Our consulting team assists clients with:
- KBLI mapping and restructuring
- OSS licensing updates
- Foreign investment (PMA) compliance
- Real estate regulatory strategy
If your business operates in Indonesia’s real estate sector, now is the right time to review your KBLI classification and ensure alignment with BPS Regulation No. 7 of 2025.
📩 Contact us to assess how this regulatory update affects your business.
1 Comment
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