Indonesia Positive Investment List: Clearer Open Sectors and Smarter Ownership Rules

In day-to-day planning, the Positive Investment List is a master reference for what a foreign investor can own and what structure is required. It connects directly to KBLI codes, which function as the legal identity of the activity you register in OSS and the anchor for any foreign ownership rule that applies. As multiple sources stress, “open” does not mean automatic entry. You still need to select the correct KBLI code, confirm the ownership percentage allowed, and secure the licenses required by OSS risk-based rules and sector regulators. Some business fields remain accessible only with conditions, such as mandatory special approvals, investment capital requirements, or foreign ownership limits that may be waived under specific circumstances.

Open Sectors, Priority Fields, and What “100%” Really Means

Several sources summarise the general rule in the new framework as: business sectors are open to 100% foreign ownership unless explicitly limited. One article notes the elimination or raising of foreign ownership caps in over 200 business lines. The government also prioritises specific fields for facilities under the priority sector classification, described as including 245 business fields such as manufacturing, renewable energy, digital economy, infrastructure, healthcare, and pharmaceuticals. But investors should avoid oversimplifying the message into “everything is 100% open.” The framework still includes capped or conditional lines, and sector-specific rules can add operational requirements even when the ownership limit looks permissive on paper.

For investors assessing incentives, the sources list both fiscal and non-fiscal facilities tied to priority criteria. Fiscal examples include a 50% corporate income tax reduction for investments between IDR 100 billion and IDR 500 billion for five years, and a 100% corporate income tax reduction for investments over IDR 500 billion for periods ranging from five to twenty years. Other items include a 30% reduction in taxable income for six years, a special withholding tax rate on dividends at 10%, and tax loss carry-forward for up to 10 years. Qualification can depend on criteria such as being labor intensive (employs at least 200 workers and labor costs at least 15% of production costs) or being capital intensive (at least IDR 100 billion investment capital), among other listed conditions.

It is also important to separate ownership rules from implementation updates. As of 2025, sources state the ownership framework remained unchanged, even as implementing rules focused on licensing mechanics and risk-based supervision. As of 2026, the main rules are still PR 10/2021 and PR 49/2021, and one source highlights a notable operational change: in October 2025, BKPM Regulation No. 5 of 2025 reduced the minimum paid-up capital for a PT PMA from IDR 10 billion to IDR 2.5 billion, described as a 75% reduction. In terms of investment momentum cited in the sources, Indonesia’s total direct investment in 2024 reached IDR 1,714.2 trillion, with FDI at IDR 900.2 trillion, while Q1 2025 FDI was approximately US$13.67 billion, a 12.7% increase compared to the same period last year.