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Foreign Investment in Indonesia — What You Need to Know

Indonesia’s growing economy presents exciting opportunities for foreign investors,but it also requires a thorough understanding of local regulations.
Indonesia’s growing economy presents exciting opportunities for foreign investors, but it also requires a thorough understanding of local regulations. The country has made efforts to simplify the process, but foreign ownership still involves several legal steps that must be properly managed.

To begin, foreign entities must establish a PT PMA (Foreign-Owned Company) through the Online Single Submission (OSS) system. This structure allows foreign shareholders to own shares legally, provided the business activity is not on the Negative Investment List or its successor, the Positive Investment List.

There are capital requirements to meet, typically IDR 10 billion in investment, and specific licensing to obtain depending on the industry. Compliance with company establishment procedures, tax registration, and local labor rules is mandatory from the start.

Many foreign investors struggle with unclear classifications or delays due to incomplete documentation. These issues can be avoided with proper planning and a clear understanding of government expectations.

SatuSolusi offers hands-on assistance throughout the entire investment setup — from structure advice and legal filings to post-establishment compliance — ensuring a smooth and lawful entry into the Indonesian market.

Foreign Investment in Indonesia — What You Need to Know
SatuSolusi Consultancy, Jovita Larasati Poetri April 8, 2025
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