Indonesia’s Positive Investment List flipped the old, restrictive model on its head: as of March 4, 2021, all business sectors are open to 100% foreign investment unless a regulation explicitly restricts or closes them, replacing the long-standing DNI (Negative Investment List) under Perpres 10/2021, as amended by Perpres 49/2021. Below are the key points you need, framed as questions with direct answers up front.
It’s Indonesia’s pro-investment regime that replaced the Negative Investment List on March 4, 2021 and significantly broadened market access through Perpres 10/2021 as amended by Perpres 49/2021.
Compared to the previous, restrictive approach, the new policy follows the principle: “All sectors are open unless explicitly closed or restricted.” It liberalizes 200+ business lines, including strategic areas like transportation, energy, and telecommunications.
Its goal is to increase Indonesia’s attractiveness, drive growth, enable businesses of all sizes, and provide legal certainty. Specifically, it aims to:
The general rule is openness: most sectors are open to 100% foreign investment unless otherwise restricted. Examples of sectors liberalized under the new regime include:
They fall into three categories: Priority Sectors, Sectors for/with MSME partnerships, and Sectors with Specific Requirements. This framework clarifies where incentives apply, where MSME participation is required, and where special ownership/capital rules exist.
Priority Sectors (246 business lines in Annex I) offer fiscal incentives to accelerate investment. Incentives can include:
Annex II identifies 106 business lines that are reserved for or require partnerships with cooperatives/MSMEs to integrate smaller players into national supply chains. Representative areas include:
Only a small set remains closed, plus sectors reserved exclusively for the central government (often for defense/sovereignty reasons). The six closed sectors include:
It means easier market entry, clearer rules, and potential incentives—ultimately supporting Indonesia’s stability and growth. Practically, the list can simplify company establishment while unlocking relevant incentives for qualifying sectors and investments.
Permitindo supports investors end-to-end with sector classification, eligibility mapping for Priority incentives, structuring in line with MSME-partnership or specific-requirement rules, and company incorporation, so your plan aligns with the Positive Investment List from day one.
If you’d like help assessing your KBLI fit, potential incentives, or partnership needs, email [email protected] or fill out the contact form below, and we’ll guide you through the next steps.