Take into consideration that some business activities require Indonesian citizens or legal entities to hold shares alongside foreigners.  PT PMA is the only allowed form of foreign investment in Indonesia.

Company Law

Indonesian company law makes a clear differences between a locally-owned companies (PT) and foreign-owned companies (PT PMA). There is also a negative investment list, or also known as Daftar Negatif Investasi (DNI).

This list regulates the specific sectors that are open and closed to foreign investment. The DNI also regulates the specific proportion of equity that a foreign investor may have in a specific line of business.

Indonesia has been going through bureaucratic reforms to improve the efficiency of its internal processes to encourage foreign direct investment. This has resulted in an amendment of the DNI and the recent creation of an online process, also known as the Online Single Submission (OSS), which is currently managed by the Coordinating Ministry for Economic Affairs.

The Negative Investment List is compiled by the Indonesia Investment Coordinating Board, BKPM. It stipulates which sectors are open to foreign investment in Indonesia