The Indonesian Government has set a Positive Investment List (DPI) as stipulated in Presidential Regulation (Perpres) Number 10 of 2021 concerning the Investment Business Field that comes into effect on March 4th, 2021. The aim is to encourage the flow of capital of domestic investors and foreign investors into the country.

Perpres 10/2021 describes the DPI as consisting of three classifications:

1. Priority business fields with the criteria of being a national strategic project (PSN), capital-intensive, labor-intensive, high-technology, industry pioneer, export orientation, and I+D+i orientation. The Indonesian Government will provide additional incentives to these sectors, starting with tax allowance benefits. Non-fiscal incentives are also provided including ease of business licensing, provision of supporting infrastructure, guaranteed availability of energy and raw materials, immigration, and employment. The details of these incentives will be confirmed at a later stage.

2. Business fields allocated for domestic capitals with the criteria of business activities that do not use technology or use simple technology, with a special process, labor-intensive, and have a cultural heritage.

3. Business fields that are open or open with limitations based on certain requirements and business fields that can be undertaken by all types of investment, including cooperatives and MSMEs. Hundreds of business classifications will be open to investors in Indonesia that were previously closed.

The following table shows some of the business classifications or sectors that will be affected by the new Positive Investment List:

For more complete Positive Investment List please contact Double M.