Investments in Indonesia 2025

Investment Coordinating Board (BKPM):

• BKPM is the primary government agency responsible for promoting and facilitating foreign investment.  
• BKPM provides information, assistance, and licensing services to foreign investors.

Online Single Submission (OSS):

• The OSS system streamlines the business licensing process.  
• It aims to simplify and expedite the issuance of business licenses and permits.  

Tax Holidays:

• Indonesia offers tax holidays for investments in specific sectors or regions.  
• Tax holidays provide exemptions or reductions in corporate income tax for a specified period.  
• The specific requirements and durations vary.

Tax Allowances:

• Tax allowances provide reductions in net income for specific investments.  
• These allowances may include accelerated depreciation or amortization.  
• Specific sectors and regions may qualify for tax allowances.  

Special Economic Zones (SEZs):

• SEZs offer various incentives to attract investment.  
• Incentives may include tax exemptions, import duty exemptions, and simplified licensing procedures.  
• Specific regulations apply to businesses operating in SEZs.

Priority Investment Sectors:

• The government designates priority investment sectors.  
• These sectors may receive preferential treatment or incentives.  
• The priority investment sectors are subject to change.

Investment Guarantee Agreements:

• Indonesia has investment guarantee agreements with numerous countries.
• These agreements aim to protect foreign investments from non-commercial risks.

Infrastructure Development:

• The Indonesian government is investing in infrastructure projects.  
• These investments aim to improve connectivity and facilitate economic growth.

Downstream Industries:

• The government is encouraging foreign investment in downstream industries.  
• This is being done to increase the added value of the nations raw material exports.

Regional Investment Incentives:

• Specific regional governments may offer investment incentives.  
• These incentives vary by region.

Bilateral Investment Treaties:

• Indonesia has bilateral investment treaties with several countries.  
• These treaties provide protections to foreign investors.

Danantara:

• The Indonesian government has created a state owned investment company, named Danantara.  
• This company aims to consolidate state owned enterprises, and drive investment into national strategic projects.