Indonesia’s Positive Investment List: Sectors Open and Restricted to Foreign Businesses
Indonesia’s Positive Investment List, introduced through Presidential Regulation No. 49 of 2021, liberalizes over 200 business sectors for foreign investment, including transportation, energy, and telecommunications. The regulation divides business fields into four categories: priority sectors (with incentives for labor-intensive, export-oriented, and advanced-technology industries), sectors with specific restrictions (like alcoholic beverages requiring licenses), sectors open to foreign investment through compulsory MSME partnerships (106 business lines), and fully open business fields (such as oil and gas, electricity, e-commerce, and hospitals).
Priority sector investments receive fiscal incentives (like tax reductions) and non-fiscal support (like simplified licensing). Six business sectors remain closed to all investment, such as narcotics, gambling, and certain environmentally harmful industries.