How to Invest in Indonesia

Rules and Regulations

Indonesia is one of the most attractive destinations as an investment centre owing to the vast natural resources, its land mass and availability of a major workforce. The country has been working on investment friendly policies and the reduction in bureaucracy in order to attract more investment.

Indonesia does not impose restrictions on the transfer of foreign exchange and in several sectors there are attractive tax incentives.

Before considering investing in Indonesia, it is advisable to go through the "Negative Investment List" (Daftar Negatif Investasi/DNI). This contains the full list of the business sectors that are closed to investment, being it foreign or domestic.

Special provisions or terms for certain fields of business open to capital investment must be observed by investors, both in applying for and in conduction capital investment activities in the country, as outlined in the Capital Investment Implementation Technical Guidance (Petunjuk Teknis Pelaksanaan Penanaman Modal/PTPPM).

 

Negative Investment List: Top 10

The "Negative Investment List" (Daftar Negatif Investasi/DNI) is a list of business sectors that are partly or fully closed to foreign investment.

The list was last revised in 2010. Below are some businesses closed to FDI. For the full list, please consult here.

  • Alcoholic Beverage Industry
  • Fisheries
  • Telecommunications Towers
  • Chemical Materials
  • Culture and Tourism, such as Casinos.