Positive List of Indonesian Investments (DPI) With the passing of Law Number 11 of 2020 concerning “Cipta Kerja” or what is known as the Omnibus Law, the Indonesian government introduced two main things related to the implementation of business activities, i.e;  a positive list of investment and risk-based business licensing. The government has established a Positive Investment List (DPI) as regulated in Presidential Regulation (Perpres) Number 10 of 2021 concerning the Investment Business Field.

Presidential Regulation (Perpres) Number 10 of 2021 replaces and revokes provisions regarding the previous negative list of investments, namely Presidential Regulation Number 44 of 2016 (negative list of Indonesian investment).

This new concept in the conduct of business activities was established with the aim of increasing investment in Indonesia and simplifying the flow of business licensing to make it more effective. Opening up more business fields for both domestic (local) and foreign investors. Small, Medium and Large.

In this article, we will discuss, simplify and provide you with a broader and better understanding of the Positive List of Indonesian Investments.

General Principles of the Positive Investment List

The positive investment list is that the business sector is open to 100% foreign investment unless it is subject to certain types of restrictions. This regulation is one of the biggest liberalizations in limiting foreign ownership in Indonesia to protect investment.

The Positive List of Regulated Investments Includes

  1. Priority business fields include national strategic programs/projects, capital intensive, labor intensive, high technology, industrial pioneer, export orientation, and/or orientation in research, development and innovation activities.
  2. Allocated business fields or partnerships with cooperatives and Micro, Small and Medium Enterprises (MSMEs).
  3. Business fields with certain requirements.
  4. Other business fields that all investment can undertake.

4 Categories of Classification of Positive Investment List Business in Indonesia

Positive Investment
List Categories
Business Lines Open
to Foreign Investments
Priority sectors245 business lines
open to foreign
Business fields that set
specific requirements
or limitations
46 open business
Business fields open
to large companies,
including foreign
investors, but subject
to mandatory
partnerships with
cooperatives and micro,
small and medium
enterprises (MSMEs)
51 open lines of
Business fields
designated for
cooperatives and
MSMEs (not open
to foreign investment)
112 business fields

Indonesia Priority Sectors

In an effort to spur domestic (local) and foreign investment, Indonesia has designated 245 industries as (“priorities”) and will offer incentives to attract capital to these sectors. These incentives are regulated in Presidential Regulation (PP) Number 10 of 2021 concerning the Investment Business Field. This rule is set by the President.

Indonesian Investments

Article 4 Paragraph 1 states that businesses that enter into priority business fields must meet several criteria, such as:

  1. National strategic project (PSN);
  2. Capital intensive;
  3. Labor intensive;
  4. High technology;
  5. Pioneer industry;
  6. Export orientation; and
  7. Research activities.

In addition, businesses in priority sectors are entitled to a variety of fiscal and non-fiscal incentives.

1. Fiscal Incentives

Fiscal incentives include a 50% reduction in corporate income tax for investments between IDR 100 billion and IDR 500 billion for a 5 year period and a 100% reduction for investments above IDR 500 billion for a period of between 5 and 20 years.
In addition, there is a tax allowance in the form of a reduction in taxable income by 30% of the total investment for 6 years, a special rate of withholding tax on dividends of 10%, and tax losses incurred for up to 10 years.

Fiscal incentives consist of:

Tax incentives. There are three types, i.e:

  1. Income tax incentives for investment in certain business fields and/or in certain areas (tax allowance).
  2. Reduction of corporate income tax (tax holiday).
  3. Reduction of corporate income tax and facilities for reducing net income for investment and reduction of gross income for certain activities (investment allowance).

This includes a reduction in net income tax on new investment or business expansion in certain business fields that are labor-intensive industries; and/or reduction in gross income for implementing work practice activities, apprenticeship and/or learning in the framework of fostering and developing certain competency-based human resources.

In addition, there are customs incentives in the form of exemption from import duty on imports of machinery and goods and materials for industrial development or development in the context of investment.

2. Non-fiscal Incentives

Includes ease of business licensing, provision of supporting infrastructure, guaranteed energy availability, guaranteed availability of raw materials, and incentives for immigration, employment, and other conveniences in accordance with the provisions of laws and regulations.

Additional information:

For priority sectors, 245 will receive tax incentives. Of the total 245 divided into several types of tax incentives, i.e:

  • 183 business lines are eligible to get tax allowances;
  • 18 get a tax holiday;
  • 44 get investment allowances;

Business Fields that Set Specific Requirements or Limitations

Business fields in this category are open to all investors but have the following requirements:

  1. Requirements for investment capital for domestic (local) or investors
  2. Limited investment capital requirements for foreign investors. These limits can be waived for the following:
  • Investment is indirect investment made through the Indonesia Stock Exchange (IDX).
  • Investments are made in special economic zones (SEZ). Special Economic Zones. Investments in Special Economic Zones are not subject to foreign ownership restrictions and special conditions that apply to certain business sectors. As of February 11, 2021, there are 11 Special Economic Zones that are already operating in Indonesia, and 4 are under construction. Visit https://kek.go.id/peta-sebaran-kek  for more details on the location and designation of these Special Economic Zones.
  • Investors who have been granted special rights based on an agreement between their country and Indonesia.
  • Investments are made prior to the promulgation of the draft regulation.
  1. Investments that require a special license.

Under this category, the business fields are open to foreign investment but are subject to the following types of restrictions:

  1. A business line is provided for domestic (local) investors;
  2. Business lines that are subject to foreign ownership restrictions; and
  3. Business lines that require special permits.

There are a total of 46 business lines. For more details, see Appendix III of the Copy of Presidential Decree Number 10 of 2021.

The Business Field is Open to Foreign Investors but is Subject to Mandatory Partnerships with MSMEs

Business fields in this category are open to foreign investors or large-scale companies through mandatory partnership agreements with MSMEs.

This category includes businesses that are generally carried out by MSMEs and/or sectors that have the potential to enter into a larger supply chain. Partnerships can be in the form of operational cooperation, profit sharing, subcontracting, outsourcing, or distribution.

Open to Foreign Investors

Business fields allocated or requiring partnerships with MSMEs have this category related to business fields allocated or requiring partnerships with SMEs. This category is divided into

  1. Business fields designated for cooperatives or SMEs; and
  2. Business fields that involve large-scale companies are required to establish partnerships with cooperatives or SMEs.

For Point 1 Determined by The Following Criteria:

  1. The capital required for business activities should not exceed 10 billion rupiah. This does not include land and property.
  2. Business fields must not take advantage of advanced technology.
  3. The business sector must be labor intensive and characterized by a special cultural heritage.

For Criteria for Point 2 are as Follows:

  1. Business fields that are mostly undertaken by cooperatives and MSMEs
  2. This sector has the potential to be upgraded to enter a larger supply chain.

The Business Sector is Designated for Cooperatives and MSMEs 

This category stipulates that the business sector is reserved for local MSMEs and is not open to foreign investment.


  1. Foreign investors can only carry out business activities in large enterprises with an investment value of more than Rp. 10,000,000,000.00 (ten billion rupiah) excluding the value of land and buildings/ property values.
  2. Foreign investment must be in the form of a company limited based on Indonesian law and domiciled in the territory of the Republic of Indonesia, unless otherwise stipulated by law.

Closed Business Activities for Investment in Indonesia

Based on this regulation, there are 6 business fields closed for investment, both for domestic (local) companies and for foreign companies. As follows:

  1. Class-I narcotics and cultivation.
  2. Catching fish species listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
  3. Utilization (Taking) of Coral/Coral from Nature for: Building Materials/Lime/Calcium, Aquariums, and Souvenirs/Jewelery, as well as Live or Dead Coral (recent death coral) from Nature.
  4. All Gambling/Casino Activities.
  5. Industrial ozone-depleting substances industries and industrial chemicals.
  6. Chemical weapons production.

Important Notice: 

This regulation will take effect as of March 4, 2021. The aim is to encourage the flow of capital from local investors and foreign investors to Indonesia.


Find out firsthand what is needed to expand into Indonesia. For more details, you can contact us Indoservice regarding the establishment of Companies in Indonesia. Indoservice, a secretarial and licensing services consulting firm that can assist you in setting up a company in Indonesia and business-related licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs. Contact us now for special offers at +62818-1881-1887 & +62877-1449-8500 or admin@indoservice.co.id


Submit a Comment

Your email address will not be published.