Indonesia flag Indonesia: Investing in Indonesia

Investment framework and opportunities in Indonesia

Procedures Relative to Foreign Investment

Freedom of Establishment
Not guaranteed in all sectors. Indonesia restricts foreign investment in some sectors through a Negative Investment List.
Acquisition of Holdings
A majority holding interest in the capital of an Indonesian company is legal, except in certain sectors of activity.
Obligation to Declare
The Investment Coordination Board, or BKPM, acts as an investment promotion agency, regulatory body and agency responsible for approving planned investments in Indonesia. Consequently, it is the first point of contact for foreign investors, particularly in the manufacturing, industrial and non-financial services sectors.
Competent Organisation For the Declaration
Agency for the control of food and drugs (BPOM)
Bureau for the coordination of investments (BKPM)
Requests For Specific Authorisations
Restrictions on FDI are outlined in Presidential Decree No.44/2016. The Negative Investment List aims to consolidate the restrictions on FDI resulting from numerous decrees and regulations, in order to create more certainty for foreign and domestic investors. The 2016 revision of the list has relaxed restrictions in a number of previously closed or limited fields.
Among the partially open sectors for foreign investment, there are:

  • A construction services business is open for up to 67% foreign investment (70% if the foreign investor is from an ASEAN nation).
  • A distribution business that is not affiliated with a manufacturing business is open for up to 67% foreign investment; however, the distribution business becomes open to 100% foreign investment if it is affiliated with the manufacturer.
  • An insurance business is open for up to 80% foreign investment.

Before conducting business in the abovementioned sectors , approval must be obtained from the competent organization BKPM.

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Investment Opportunities

Investment Aid Agency
Tenders, Projects and Public Procurement
Tenders Info, Tenders in Indonesia
Asian Development Bank, Procurement Plans in Asia
Other Useful Resources
Indonesian Chamber of Commerce and Industry

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Latest Update: July 2024