Classification of Business Fields: Definition and History

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YOGYAKARTA - In simple terms, the classification of business fields is an important instrument used to organize economic activities. Organizing is important so that economic activities can be analyzed, compared, and used as a basis for decision-making. To understand more about the classification of business fields, read the following article.

Understanding the Classification of Business Fields

In the book entitled Classification of Indonesian Business Fields (KBLI) 2020 from the Central Statistics Agency, it is explained that classification is a grouping system used in economic communication and the statistical processes contained therein.

In classification, all data will be grouped into homogeneous classes according to the rules or standards that have been established. For example, grouping is carried out on the similarity of business activity characteristics, especially in terms of the production process, the type of goods or services produced, even the purpose of economic activities.

After the classification is carried out, identification can be carried out. That way, the activities of analyzing and recording economic activities can be carried out.

In practice, this field classification activity is used by many parties, especially the government, or statistical agencies, researchers, even business actors. For the government and statistical agencies, classification can be used as a basis for compiling economic indicators such as Gross Domestic Product (GDP) or Gross Regional Domestic Product (GRDP).

For business actors and academics, classifications can be used as a reference in licensing, business planning, and determining objects and variables of economic research.

The classification of business fields in Indonesia is not formed instantly, but through a long development process.

The business field classification system was first introduced through the Indonesian Business Field Classification (KLUI) in 1977. At that time, KLUI was compiled by referring to the international standard International Standard Industrial Classification (ISIC) Revision 2.

Along with changes in the economic structure and the emergence of various types of new business activities, a number of revisions and adjustments to the classification were carried out.

Changes and improvements to the classification of business fields will certainly continue. Starting from the KLUI 1983 and 1990, then transformed into the Indonesian Basic Classification of Business Fields (KBLI) in 2000 and 2005.

After that, KBLI was again updated through several editions, namely KBLI 2009, KBLI 2015, and finally KBLI 2020. Each update was carried out to ensure that the classification of business fields would remain relevant to the development of economic activities, including the modern industrial sector and technology-based services.

Understanding the classification of the business field of the instrument is very important to avoid errors in licensing, business registration, to determining the economic sector. Therefore, the use of business field classifications such as KBLI must be applied carefully, consistently, and thoroughly so that the economic data generated really reflect the actual business conditions. In addition, it can also be used in planning and decision-making.

In addition to related business field classifications, visit VOI.id to get other interesting information.