Indonesia’s Positive Investment List gives foreign businesses a simpler starting point. Most business sectors are open to investment unless specific rules state otherwise.
This policy represents a major shift from the old Negative Investment List approach. Previously, investors had to check restricted sectors first.
For foreign entrepreneurs, property developers, startup founders, and international companies, this framework brings great news.
However, open investment does not mean quick setup. Investors still must match their ownership structure, KBLI code, capital plan, and other business licensing.
What is the Positive Investment List (DPI)?
The Positive Investment List, known in Indonesian as Daftar Positif Investasi (DPI), replaced the former Negative Investment List in 2021.
Its basic concept remains simple. Specifically, the government opens business fields to foreign investment unless regulations explicitly restrict or reserve them.
Indonesia categorizes business opportunities into three main DPI groups:
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1. Priority Sectors (100% Open + Incentives)
High-impact industries allow 100% foreign ownership. Furthermore, the government offers tax holidays, tax allowances, and import duty exemptions for these sectors.
For instance: Renewable energy projects, digital infrastructure like data centers, large-scale healthcare, and major tourism developments.
2. Open Sectors (100% Foreign Ownership Allowed)
Many commercial sectors allow 100% foreign shareholding through a foreign-owned company/PT PMA setup.
For instance: Real estate development and property holding (buying, building, and leasing real estate), star-rated hotel operations, property/villa management, F&B/restaurant chains, software development, and management consultancies.
3. Sectors Reserved for Domestic Market or Partnerships
A narrow list of business activities remains reserved for local Indonesian ownership. Alternatively, some sectors require mandatory joint partnerships with local MSMEs to protect local enterprises.
For instance: Traditional retail kiosks, local travel agencies, traditional craft manufacturing, and non-star budget accommodations.
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PT PMA Capital Rules for Indonesia Positive Investment List
Under Regulation of Indonesia Investment Coordinating Board No. 5 of 2025, BKPM treats a PT PMA as a large enterprise. Therefore, the total investment value must exceed IDR 10 billion per 5-digit KBLI code and project location, excluding land and buildings.
To qualify for foreign direct investment in Indonesia, foreign companies must meet two main capital criteria:
• Minimum Total Investment Value: The Ministry of Investment / BKPM requires a total investment value exceeding IDR 10 billion (excluding land and buildings) per KBLI code.
• Minimum Paid-Up Capital: Under BKPM Regulation No. 5/2025, the government sets a minimum paid-up capital of IDR 2.5 billion. Investors must inject and deposit this capital into the company’s Indonesian bank account.
Streamlining PT PMA Setups with Seven Stones Indonesia
Entering Indonesia’s growing markets should be an exciting venture instead of administrative hurdles.
Understanding foreign capital requirements is crucial before committing funds. Partnering with Seven Stones Indonesia helps foreign businesses avoid common structural mistakes through comprehensive corporate support:
• Matching business ideas to the correct KBLI codes under the DPI
• Structuring paid-up capital and OSS-RBA compliance
• Managing full PT PMA incorporation and tax setup
• Handling ongoing corporate advisory and KBLI/other business licensing updates
For international investors looking to establish a solid, fully compliant legal footprint in Indonesia, getting in touch with Seven Stones Indonesia ensures every step aligns smoothly with government regulations.