Foreign Investment
Your Legal Gateway to Investing in Indonesia.
Overview
Indonesia is one of Southeast Asia's most attractive destinations for foreign investment — offering a large market, rich natural resources, and a growing consumer class. But navigating Indonesia's investment regulations requires expert legal guidance to avoid costly errors and delays.
Law Firm Benjamin Seran Jr & Partners has a well-established reputation for assisting foreign investors and international companies establish and operate in Indonesia. We have guided investors through PMA establishment, licensing procedures, and ongoing compliance for years.
Approval Stages of Investment
Foreign investment companies (PMA) operating in Indonesia may be structured as 100% foreign-owned or as a joint venture with Indonesian partners, in the form of a Limited Liability Company (PT) domiciled in Indonesia.
Before proceeding, investors must review the Negative List of Investment (Daftar Negatif Investasi), which identifies restricted business sectors for both domestic and foreign investment. Certain sectors are conditionally open to foreign investors under specific requirements — such as partnership with state companies, medium-scale, or small-scale entrepreneurs, or operations in designated locations.
Investment approval (SPPM) may be issued through the Investment Coordinating Board (BKPM) in Jakarta, provincial investment offices (BPPMD), or Indonesian government representative offices abroad. The full evaluation and approval process typically takes 10 working days.
Implementation Licensing
Following initial approval, investors must obtain additional permits including the Foreign Workers Staffing Plan (RPTKA), import approval for capital goods and raw materials, and various local government permits such as Location Permits (Izin Lokasi), Building Permits (IMB), and Expatriate Working Permits (IKTA/IMTA).
Amendments and Expansion
Once a PMA company is operational, amendments to investment provisions — including expansion into new business lines or increases in capital — may be submitted to the original issuing authority. Applications must include all active original permit documentation.
Representative Offices
Foreign companies seeking to establish a Regional Representative Office (KPWPA) in Indonesia must obtain approval from the Head of BKPM. Required documents include a letter of appointment from the parent company, certified copies of the parent company's incorporation documents, and a declaration of intent from the proposed head of the representative office.