Investment Openness
All business activities are open to 100% foreign ownership, except for 37 business activities subject to specific requirements as listed in Presidential Regulation No. 49/2021. This revised regulation lifts restrictions on 350 business activities for Foreign Direct Investment (FDI), including those in the ICT (Information and Communications Technology), healthcare, transportation, energy and mineral resources, plantation and agriculture, and construction sectors.
Open Policy for Foreign Direct Investment (FDI)
All business activities are open to 100% foreign ownership, except for 37 business activities subject to specific requirements as listed in Presidential Regulation No. 49/2021. This revised regulation lifts restrictions on 350 business activities for FDI, including those in the ICT, healthcare, transportation, energy and mineral resources, plantation and agriculture, and construction sectors. FDI companies are required to establish a limited liability company (PT) with a minimum paid-up capital of IDR 10 Billion (~US$700,000).
Simplification of Investment Regulations and Licensing
In 2020, Indonesia enacted the Job Creation Law, a breakthrough in the country's legal system that revised 77 laws through a single piece of legislation ("omnibus law"). The objective is to create broad employment opportunities by improving the investment climate and legal certainty, aligning central-regional policies, and simplifying regulations. To implement this law, several regulations have been issued, including Presidential Regulation No. 49/2021, which revoked the negative investment list.
End-to-End Services and Customized Facilities
As the frontline in improving the ease of doing business, the Ministry of Investment/BKPM is authorized to issue business licenses and investment facilities on behalf of other technical ministries and government agencies. The Ministry is empowered to provide end-to-end services, including customized facilities tailored to each investor, especially during these challenging times. Supported by State-Owned Enterprises (SOEs), the nation is also developing a new integrated industrial estate in Batang, Central Java, which offers highly competitive land lease rates—and even free rent under certain conditions.