Fakta dan Angka

Indonesia’s investment policy adheres to Presidential Regulation No. 10/2021 concerning investments in the business fields. The regulation stipulates which business fields are closed and open with certain conditions.

Currently, there are only 6 closed fields namely businesses related to cultivation for and industry of type I narcotics, gambling, fishing of endangered species, utilization and retrieval of coral, manufacturing of chemical weapon and manufacturing of industrial chemicals and ozone depleting substances. Business fields limited to the Indonesian government are service activities or for the purpose of the defense or national security, such as weaponry systems and air navigation.

Business fields open to investment are further classified into five categories: 

• Priority business fields. There are 245 priority business fields related to national strategic projects, business fields that require significant investment, large number of employees, advanced technology, pioneering industry, export oriented, and those oriented in research and development. To attract investors, the government of Indonesia provides both fiscal and non-fiscal incentives for priority business fields. 
• There are 51 business fields subject to compulsory partnership with cooperation or SMEs.
• There are 46 business fields that are open under certain stipulations such as shareholders composition, or certain types of licensing.
• There are 112 business fields which are reserved for local cooperation and SMEs.
• For business fields not classified as the abovementioned classifications it is assumed that they are open for 100% foreign ownership.

Yes, metalogika helps companies entering the Indonesian market starting from market study, finding suitable partners, and finally setting up a PT PMA and obtaining the licenses. Our consultants are deeply knowledgeable and experienced in various sectors and have been working closely with European Small to Multinational companies, European chambers and embassies, Banking sectors, and various Indonesian ministries, including the Ministry of Investment. Our services start before the licensing process, starting from market research, developing strategies to enter the market, and finding local partners, to other services related to your business after the establishment of your company, such as HR related services, Taxation, stakeholders' analysis and IPO services.

OSS stands for Online Single Submission. It is an integrated licensing application online system which was created to streamline business licensing in Indonesia. OSS is based on the Regulation no 24 of year 2018 and was launched on 9 July 2018. Upon registration in the OSS companies shall obtain the Business Identity Number (Nomor Induk Berusaha - NIB) which serve as Company Registration Certificate (TDP), Importer Identification Number (API) and Customs Identification Number (NIK). Furthermore, upon fulfilment of necessary licenses based on your business risk listed in the OSS such as Location Permit (Izin Lokasi), Environmental Licenses (Izin Lingkungan), etc. the OSS shall grant the Business License (Izin Usaha)

Foreign investors have two options of legal entity of business in Indonesia:

• A Limited Liability Company with foreign shareholders (PT PMA – Perseroan Terbatas Penanaman Modal Asing)
• A Representative Office 

According to the law, any company with any percentage of shares owned by a foreigner is a foreign owned company or PT PMA. PT PMA has the same rights as local PT and it enables you to conduct any business transaction and sales, while a Representative Office is not allowed to conduct direct sales or generate any revenues. A Representative Office is more suitable as your first step when your first priorities are to identify business opportunities, conduct market research and build relations with your stakeholders.

Depending on the investment and business fields, the government of Indonesia offers corporate income tax reduction, tax holiday, tax allowance and import duty facilities as fiscal incentives and the provision of supporting infrastructure, simplified business licensing procedures, and the guaranteed energy supply or raw materials as non-fiscal incentives.

Pursuant to Law No. 13 of 2003 on Manpower, foreigner is not allowed to hold positions relation related to human resources such as Director of Human Resources, Career Advisor, Industrial Relation Manager. Ministerial Decree of Manpower No 10 of 2018 outlines positions that are prohibited to be held by non-Indonesian.

Once the PT PMA has its Business License, they can start hiring local and foreign expert. Foreign national are allowed to hold position where Indonesian national are not available or they do not meet the requirements to do the job. These experts can only work for certain positions and duration.