Investing in Indonesia
Indonesia’s Positive Investment List: A Guide for Foreign Investors
Indonesia is a rapidly growing economy with a young and increasingly educated population. The government has been making significant efforts to attract foreign investment, and the positive investment list is one of the key tools in this effort.
The positive investment list identifies the business sectors that are open to foreign investment. It is divided into four categories :
1. Priority sectors :
These are sectors that the government has identified as being of strategic importance to the economy. Foreign investors can own 100% of the shares in companies operating in these sectors. Investors that invest in priority sectors will have access to facilities such as ease of business licensing, fiscal incentives, supporting facilities development, and work permit facilitations.
2. Business fields with specific requirements or limitations :
These are sectors where foreign investment is allowed, but there are certain requirements or limitations that must be met. For example, foreign investors may be required to form a joint venture with a local partner, or they may be limited to a certain percentage of ownership
3. Corporations with cooperatives and local MSMEs:
These are sectors where foreign investors can only invest if they form a corporation with a cooperative or local MSMEs. This is intended to promote the development of small and medium-sized enterprises in Indonesia.
4. Opened sectors :
These are business fields that are 100% open for foreigners.
The positive investment list is a dynamic document, and it is updated regularly. The most recent update was made in March 2021.
If you are considering investing in Indonesia, it is important to check the positive investment list to see if the sector you are interested in is open to foreign investment. You can find the positive investment list on the website of the Investment Coordinating Board (BKPM).
The positive investment list is a good starting point for foreign investors who are considering investing in Indonesia. However, it is important to do your own research to make sure that you understand the specific requirements and limitations that apply to the sector you are interested in.
Here are some of the benefits of investing in Indonesia :
Large and growing market :
Indonesia has a population of over 270 million people, and the economy is growing at a rapid pace
Attractive investment climate :
The government has been making significant reforms to improve the investment climate in Indonesia.
Competitive labor costs:
Competitive labor costs: Labor costs in Indonesia are relatively low, which can make it a cost-effective place to do business.
Strategic location :
Indonesia is located in a strategic location in Southeast Asia, which makes it a good base for exporting to other countries in the region.
If you are considering investing in Indonesia, the positive investment list is a good place to start your research. However, it is important to do your own research to make sure that you understand the specific requirements and limitations that apply to the sector you are interested in.