Frequently Asked Questions: #businesssectors

Yes, specific licenses and permits are often required for certain business activities in Indonesia. The requirements can vary depending on the nature of the business. Here are some key points to consider:

• Basic Licenses: All companies, regardless of their business activity, need to obtain:

  • Business Identification Number (NIB), issued via the OSS system (this replaced the old company registration certificate, TDP)
  • Tax Identification Number (NPWP)
  • Risk-based business licenses via the OSS Risk-Based Approach (PP 28/2025), depending on the risk level of the business activity

  A separate domicile certificate is no longer a licensing requirement, although a registered office address is still needed as the company’s legal domicile.

• Sector-Specific Licenses: Depending on the industry, additional licenses may be required:

  • Trading companies may need an import license
  • Manufacturing companies often require industrial business licenses
  • Construction companies need construction services business licenses
  • Hotels and restaurants require tourism business licenses
  • Financial services companies need approval from the Financial Services Authority (OJK)

• Environmental Permits: Businesses that may have an environmental impact often need to obtain environmental permits or conduct environmental impact assessments (AMDAL).

• Location-Based Permits: Some regions or special economic zones may have additional licensing requirements.

• Professional Licenses: Certain professions (e.g., lawyers, doctors, architects) may need individual professional licenses in addition to company licenses.

• Online Business Permits: E-commerce businesses may require specific permits related to online transactions and data protection.

• Foreign Investment Considerations: PMA companies may face conditions in a small number of sectors under the Positive Investment List (Presidential Regulation 10/2021, as amended by 49/2021), which replaced the old Negative Investment List — most sectors are now open to 100% foreign ownership by default.

It’s important to note that licensing requirements can change, and it’s advisable to consult with a professional service provider or relevant government agencies to ensure compliance with the most up-to-date regulations for your specific business activity.

#specialLicenses   #businessRegistration   #regulatoryCompliance   #businessSectors   #investmentRestrictions  

The Negative Investment List (DNI) was Indonesia’s former list of business sectors closed or restricted to foreign investment. In 2021 it was replaced by the Positive Investment List (also called the Priority Investment List, Daftar Prioritas Investasi), issued under Presidential Regulation No. 10/2021 as amended by No. 49/2021. Key points for foreign investors:

• The default flipped: under the DNI, sectors were assumed restricted unless listed as open; under the Positive Investment List, all business sectors are open to 100% foreign ownership unless specifically listed otherwise.

• Closed sectors: only a small set of activities remains completely closed to investment — for example gambling and casinos, cultivation of class-I narcotics, capture of protected and endangered species, coral extraction, and chemical weapons production. The alcoholic beverage manufacturing industry also remains closed to new investment.

• Conditional sectors: a limited number of sectors keep foreign ownership caps or special requirements (for example postal services and domestic air transport), or are reserved for — or require partnership with — Indonesian cooperatives and micro, small, and medium enterprises (MSMEs).

• Priority sectors: several hundred business fields are designated as priority sectors and qualify for incentives such as tax holidays, tax allowances, and customs facilities.

• Impact on PMA companies:

  • Far more sectors are available for wholly foreign-owned PMA companies than under the DNI
  • Business activities are defined by 5-digit KBLI classification codes chosen at registration through the OSS (Online Single Submission) system
  • Compliance with the list is checked automatically during OSS registration

• Seeking professional advice:

  • Sector conditions still change from time to time, so it’s advisable to consult with experts like Okusi Associates for the most current information and guidance on how the Positive Investment List affects specific investment plans.

By understanding the Positive Investment List, foreign investors can confirm early whether their planned activities allow full foreign ownership and structure their PMA company accordingly.

#NegativeInvestmentList   #foreignInvestmentIndonesia   #investmentRestrictions   #PMAcompany   #businessSectors  

Okusi Associates provides sector-specific market analysis for various industries in Indonesia. Our specializations include:

• Tourism and Hospitality
• Real Estate and Property Development
• Creative Industries
• Digital and IT Services
• Health and Wellness
• Education and Training
• Manufacturing
• Renewable Energy
• Agriculture and Agribusiness
• Retail and E-commerce

Our market analysis services typically cover:

• Market size and growth potential
• Competitive landscape
• Regulatory environment and compliance requirements
• Consumer behavior and trends
• Investment opportunities and challenges
• SWOT analysis
• Economic and political factors affecting the sector

We tailor our analysis to the specific needs of each client, considering factors such as:

• The client’s business model and objectives
• Target market segments
• Geographic focus (e.g., specific regions or cities in Indonesia)
• Short-term and long-term business goals

Our team of experts utilizes various research methodologies, including:

• Primary research (interviews, surveys, focus groups)
• Secondary research (industry reports, government data, academic studies)
• Data analytics and trend analysis
• Benchmarking against industry best practices

To ensure the most accurate and up-to-date information, we:

• Regularly update our knowledge base on sector-specific regulations
• Maintain relationships with industry experts and government officials
• Monitor changes in the Positive Investment List (Perpres 10/2021 jo. 49/2021) and OSS risk-based licensing rules that may affect foreign investment in specific sectors

For detailed information on our market analysis services, including pricing and turnaround times, please refer to the Okusi Associates website or contact our office directly.

#marketIntelligence   #industryAnalysis   #investmentIndonesia   #businessSectors   #regulatoryCompliance