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Expanding Market Entry in Indonesia with PT PMA

PT PMA Foreign Ownership

Indonesia welcomes foreign investment through a clear policy framework called the Priority Business Field List (Daftar Bidang Usaha Prioritas). It is set under Presidential Regulation Number 49 Year 2021 concerning Indonesian Investment Business Sector, which amends Presidential Regulation No. 10 of 2021 on Investment Business Sectors. The list shows which sectors are open, which are priority, which require partnership with MSMEs or cooperatives, and which remain restricted. It also links certain priority sectors to tax and non-tax incentives, so you can plan ownership and structure with confidence.

Policy signals also show where the country wants capital to go, such as new and renewable energy, downstream industries, food security, semiconductors, digital economy and data centers, export-oriented manufacturing, healthcare, the new capital city (IKN), and education and vocational sectors. Aligning your plan with these priorities can improve your chance of getting incentives and smoother execution.

Putranto Alliance helps foreign investors comply with the rules, choose the right structure, and secure the licenses and incentives needed to operate in Indonesia.

Priority Business Field List for Foreign Ownership

Indonesia now follows a more “positive list” approach than before. The amending regulation refines which sectors are open, the caps that apply, and how incentives are granted.

The list does three important things for market entry:

  1. Names priority sectors and incentives: Certain KBLIs can qualify for tax holidays or allowances, import duty relief, and streamlined licensing if you meet the criteria.
  2. Clarifies openness and limits: Some business lines are fully open, others are open with conditions such as foreign ownership caps or local partnership requirements, and a few remain closed.
  3. Supports MSMEs and cooperatives: Some activities are reserved for or must partner with MSMEs or cooperatives. This affects your shareholding and operating model.

Where the Government Wants Investment Now

Policy makers have flagged nine strategic sectors for 2025 and beyond.

These signals help investors align projects with Indonesia’s direction and improve the chance of qualifying for incentives:

  1. New and renewable energy
  2. Industrial downstreaming
  3. Food security
  4. Semiconductors
  5. Digital economy and data centers
  6. Export-oriented manufacturing
  7. Healthcare
  8. The new capital city (IKN)
  9. Education and vocational development

Common Challenges for Foreign Investors

  1. Mapping ownership limits to real operations: The rules are sector-specific and tied to KBLI. Misreading them can cause long delays or force a restructuring after you start.
  2. Choosing the right KBLI: Your KBLI defines what you can do, what licenses you need, and whether caps or MSME partnerships apply. A wrong KBLI can block permits and incentives.
  3. Missing incentives: Priority sectors can access tax and non-tax incentives, but only if you meet the thresholds and file correctly. Many investors leave value on the table.
  4. Assuming 100% ownership: Some fields still have caps or conditions. Early planning avoids rework and extra cost later.

How to Apply the Rules to Your PT PMA Plan

  1. Confirm activity and KBLI: Define exactly what you will do in Indonesia and match it to the correct KBLI. This drives licensing, ownership caps, and incentive eligibility.
  2. Check the list and conditions: See whether your KBLI is priority, open, open with conditions, or closed. Note any MSME or cooperative obligations.
  3. Structure ownership and capital: Align shareholding with the caps. Prepare the PT PMA plan for minimum total investment of IDR 10 billion per KBLI (typically excluding land and buildings) and paid-up capital commonly IDR 2.5 billion at incorporation, so your NIB and sector permits move without queries.
  4. Plan licensing in OSS RBA: Your OSS RBA path depends on KBLI and risk. Map the permits you need now and the ones you will need after you start operating.
  5. Apply for incentives if eligible: If your KBLI is priority, prepare the incentive package and proofs that regulators expect.
  6. Keep compliance live: After you start, maintain licenses, file LKPM, register NPWP and PKP as needed, and enroll employees in BPJS. Update OSS RBA when your data changes.

How Putranto Alliance Helps

  1. DPI and Ownership Mapping: We translate Presidential Regulation No. 49 of 2021 into clear ownership options for your model, including any MSME or cooperative partnership rules.
  2. KBLI Selection and Licensing Plan: We match your activities to the right KBLI and build a permit roadmap through OSS RBA and sector regulators, so you avoid rework and downtime.
  3. Capital and Investment Readiness: We align your plan with IDR 10 billion per KBLI investment and IDR 2.5 billion paid-up capital benchmarks and prepare the evidence that authorities expect.
  4. Incentives Advisory: If your sector is priority, we prepare and file your tax and non-tax incentives and help you meet the criteria on day one.
  5. PT PMA Setup and Ongoing Compliance: From articles of association to NIB and sector licenses, then LKPM, tax, and BPJS, we manage the full process so you can focus on operations.

Warning: Without proper structuring, your application can be delayed for months or even rejected. Putranto Alliance makes sure your PT PMA complies from the start.

Start PT PMA in Indonesia

Foreign ownership in Indonesia is clearer and more welcoming under Presidential Regulation No. 49 of 2021. By aligning KBLI, ownership, capital, and incentives with the rules, you can set up a PT PMA that is compliant from day one and ready to scale.

Do not risk costly delays or rejected applications.

Contact Putranto Alliance today for a tailored plan.

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