Frequently Asked Questions: #foreigner-100-percent-ownership-indonesia

In most business fields, yes. Since the 2021 investment reforms, Indonesia’s default position is that business fields are open to 100% foreign ownership unless a regulation says otherwise. The exceptions come in layers:

• Closed fields — a short list closed to all private investment (foreign and domestic alike)
• Fields reserved or partnered — activities reserved for cooperatives and small/medium enterprises, or requiring partnership with them
• Capped fields — sectors where a maximum foreign shareholding applies (for example, certain postal, broadcasting, and transport activities)
• Conditional fields — open, but with special licensing or location conditions

The controlling instrument is the investment list (BUPM, under Presidential Regulation 10/2021 as amended) read together with the KBLI business classification. The practical method is always the same: identify the exact 5-digit KBLI code for what you actually intend to do, then check its treatment. Two similar-sounding activities can have different ownership rules.

Two current cautions:

• Regional overlays exist. Bali closed OSS licensing access for new PMA companies in 18 KBLI codes in May 2026 — fields that remain 100% open elsewhere in Indonesia. National openness does not guarantee provincial welcome.
• Any foreign share makes it a PMA. Even 1% foreign ownership makes the company a PMA, bringing the full capital requirements with it. There is no “mostly local” discount.

Okusi Associates checks the KBLI treatment for every proposed activity before establishment — see PT.PMA for the establishment service.

#foreignOwnershipRestrictions   #PMAcompany   #businessSectors   #restrictedSectors