2022 State Budget: Fiscal Policy and Structural Reform
Positive Investment List:
Improving the Investment Ecosystem in Indonesia
Changes in the licensing process and expansion of business fields for investment will be a game changer in accelerating investment and
opening new jobs
INVESTMENT
Changes in the Regulation of
the Investment Business Field
Presidential Regulation No
44 of 2016 "Indonesia
Negative Investment List"
List of Business Fields
Closed to Investment
20 business activities
Business Activities
Allocated for or Requiring
Partnership with
Cooperatives and MSMEs
145 business activities
Business Activities that
are Open with Certain
Requirements
350 business activities
Source: Coordinating Ministry for Economic Affairs
Presidential Regulation No.
49 of 2021 (PR 49/2021),
which amends PR 10/2021
"Investment Business Field"
Priority Business
Activities
246 business activities
Business Activities
Allocated for or Requiring
Partnership with
Cooperatives and MSMEs
182 business activities
Business Activities that are
Open with Certain
Requirements
37 business activities
• In principle, all business fields are open to investment, except
for business fields that are declared closed for investment or
activities that can only be carried out by the Central
Government.
• Investment value for FDI > IDR 10 billion. However, to
encourage technology-based startups in SEZS, FDI investment
value can be <= IDR 10 billion
Priority Business Activities with the following criteria:
National strategic project/program
Capital intensive
Labour intensive
High technology
Fiscal Incentives
1. Tax Incentives:
•
•
Tax Allowances
Tax Holidays
Investment Allowances
2. Customs incentives in the form of
import duty exemption for import of
machinery and goods for industrial
development and expansion
Pioneer industry
Export oriented
Oriented in research,
development, and
innovation activities
Non-Fiscal Facilities
1. Ease of obtaining business licenses
2. Provision of supporting infrastructure
3. Guarantees on availability of energy
and materials
4. Immigration
5. Manpower
6. Other non-fiscal supports
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