Indonesia Introduces New Business Classification to Enhance Digital Economy Taxation

Improved Tax Recording for Emerging Sectors

The Indonesian Central Statistics Agency (BPS) has officially launched the 2025 Indonesian Standard Business Classification (KBLI 2025), marking a significant update from the previous 2020 version ¹

. This new classification system includes specific codes for emerging digital economy activities, particularly for content creators such as video podcasters and audio podcasters.

Key Features of KBLI 2025

The updated classification introduces several important changes:

1. Specific codes for digital content creators, including video and audio podcasting activities
2. More detailed categorization of economic activities
3. Better accommodation of new digital economy business models
4. Enhanced statistical recording capabilities

Tax Implications and Potential

The introduction of KBLI 2025 is expected to have significant tax implications for Indonesia's digital economy. According to Ariawan Rahmat from the Indonesia Economic Fiscal (IEF) Research Institute, the new classification could help unlock substantial tax potential from content creators, estimated to be around Rp 30 trillion ³

.

Regulatory Context and Implementation

The update is part of BPS's regular five-year revision cycle, ensuring that Indonesia's business classification remains aligned with global economic developments and technological advancements ¹

. The new classification will help address previous challenges in taxing digital economy activities that were not properly categorized under the old system.