Indonesia Negative List of Investment

This Negative List is intended to accelerate both foreign and domestic investments distributed across Indonesia and to develop the country’s competitiveness in the international market.

Indonesia Negative List of Investment (a Concise Guide)

Effectively since 18 May 2016, the Indonesian Government through Presidential Regulation (PR) No.44 Year 2016 (PR-44) has stipulated the new Negative List of Investment (NLI). This PR-44 revokes the previous PR on NLI (i.e. PR No.39 Year 2014/PR-39). The issuance of this new NLI is based on the 10th Economic Policy Package announced by the Coordinating Minister for Economic Affairs in February 2016 and is intended to accelerate both foreign and domestic investments distributed across Indonesia and to develop the country’s competitiveness in the international market. At the same time, this new NLI is also aimed at protecting national strategic businesses, as well as nurturing Indonesian small and medium enterprises (SMEs).

On 2 February 2021, the President of the Republic of Indonesia issued Presidential Regulation No. 10 of 2021 on Investment Lines of Businesses (“New Positive List”) and it will take effect on 4 March 2021.

Conditions that annul requirements for business lines open for investment

PR-44 stipulates that business lines open with specific requirements will be completely open for investment if they meet the following conditions:

  • the investment is made indirectly or through a portfolio the transactions of which are conducted in the domestic capital market; or
  • the investment is conducted in Special Economic Zones, except for those businesses reserved for SMEs.

Changes in capital ownership

PR-44 also sets out the limit of capital ownership by a foreign investor in the event of a merger, acquisition or consolidation. Moreover, PR-44 also sets provisions for the actions that may be conducted by a foreign investor when its capital ownership exceeds the maximum limits due to capital increase for the purpose of business
expansion.

Grandfathering clause

The implementation of investments on business lines regulated in PR-44 is not applicable for investments which have been approved prior to the issue of PR-44, unless that provision is more beneficial for the investment.

List of business fields regulated in the Indonesia Negative List of Investment

Below are the details in the NLI that are relevant to foreign direct investment into Indonesia:

No.

Business Field

ISIC

Sector

1

Growing of Marijuana

01289

Agriculture

2

Fishing of species of fish listed in Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

10719

Forestry

3

Salvage of valuable artifacts from shipwrecks

52229

Marine Affairs and Fisheries

4

Gathering (taking) of coral from nature for construction materials/lime/calcium and souvenirs/jewellery as well as living coral or dead coral (recently dead coral) from nature

03117

Marine Affairs and Fisheries

5

Manufacture of chloro alkali with mercury process

20111

Industry

6

Manufacture of active ingredients of pesticides: Dichloro Diphenyl Trichloroethane (DDT), Aldrin, Endrin, Dieldrin, Chlordane, Heptachlor, Mirex, dan/and Toxaphene.

20211

Industry

7

Manufacture of industrial chemicals and Manufacture of Ozone Depleting Substances

20119

Industry

8

Manufacture of chemicals listed in the Chemical Weapons Convention as provided in Law Number 9 of 2008 concerning Use of Chemicals and Prohibition on Use of Chemicals as Chemical Weapons

20119

Industry

9

Manufacture of alcoholic hard liquor

11010

Industry

10

Manufacture of alcoholic beverages: Wine

11020

Industry

11

Malt beverages

11031

Industry

12

Provision and operation of terminals for passenger land transport

52211

Transportation

13

Provision and operation of weigh stations

52219

Transportation

14

Telecommunications/aids to shipping navigation and vessel traffic information system (VTIS)

52221

Transportation

15

Provision of air navigation services

52230

Transportation

16

Performance of testing of types of motor vehicles

71203

Transportation

17

Management and operation of radio frequency spectrum and satellite orbit monitoring stations

61300

Communications and Informatics

18

Governmental museums

91021

Education and Culture

19

Historical and archaeological remains (temples, Sultan’s palaces, inscriptions, ruins, ancient buildings, etc.)

91023

Education and Culture

20

Gambling/casinos

92000

Tourism and Creative Economy

No.

Business Field

ISIC

Conditions

Sector

 

Growing of staple food crops with an area of more than 25 Ha:

1

Rice

01121 01122

Reserved for MSMBC

Agriculture

2

Corn

01111

Reserved for MSMBC

Agriculture

3

Soybeans

01113

Reserved for MSMBC

Agriculture

4

Groundnuts

01114

Reserved for MSMBC

Agriculture

5

Green beans

01115

Reserved for MSMBC

Agriculture

6

Other food crops (cassava and sweet potatos)

01135

Reserved for MSMBC

Agriculture

 

Plantation breeding with an area of less than 25 Ha:

7

Jatropha curcas

01299

Reserved for MSMBC

Agriculture

8

Other sweetener crops

01137

Reserved for MSMBC

Agriculture

9

Sugar cane

01140

Reserved for MSMBC

Agriculture

10

Tobacco

01150

Reserved for MSMBC

Agriculture

11

Textile raw materials and cotton

01160

Reserved for MSMBC

Agriculture

12

Other crops not elsewhere classified

01299

Reserved for MSMBC

Agriculture

13

Cashews

01220

Reserved for MSMBC

Agriculture

14

Coconut palms

01261

Reserved for MSMBC

Agriculture

15

Oil palms

01262

Reserved for MSMBC

Agriculture

16

Beverage crops (tea, coffee and cocoa)

01270

Reserved for MSMBC

Agriculture

17

Peppercorns

01281

Reserved for MSMBC

Agriculture

18

Cloves

01282

Reserved for MSMBC

Agriculture

19

Essential oil crops

01284

Reserved for MSMBC

Agriculture

20

Medicinal/pharmaceutical crops (other than horticulture)

01285 01286

Reserved for MSMBC

Agriculture

21

Other spice crops

01289

Reserved for MSMBC

Agriculture

22

Rubber and other trees for extraction of sap

01291

Reserved for MSMBC

Agriculture

 

Plantation farming with an area of less than 25 Ha:

23

Other sweetener crops

01137

Reserved for MSMBC

Agriculture

24

Sugar cane

01140

Reserved for MSMBC

Agriculture

25

Tobacco

01150

Reserved for MSMBC

Agriculture

26

Textile raw materials and and cotton

01160

Reserved for MSMBC

Agriculture

27

Cashews

01220

Reserved for MSMBC

Agriculture

28

Coconut palms

01261

Reserved for MSMBC

Agriculture

29

Oil palms

01262

Reserved for MSMBC

Agriculture

30

Beverage crops (tea, coffee and cocoa)

01270

Reserved for MSMBC

Agriculture

31

Peppercorns

01281

Reserved for MSMBC

Agriculture

32

Cloves

01282

Reserved for MSMBC

Agriculture

33

Essential oil crops

01284

Reserved for MSMBC

Agriculture

34

Medicinal/pharmaceutical crops (other than horticulture)

01285 01286

Reserved for MSMBC

Agriculture

35

Other spice crops

01289

Reserved for MSMBC

Agriculture

36

Rubber and other trees for extraction of sap

01291

Reserved for MSMBC

Agriculture

37

Other plantation farming

01299

Reserved for MSMBC

Agriculture

 

Manufacture with specific capacities:

38

Manufacture of dried clove buds

01630

Reserved for MSMBC

Agriculture

39

Manufacture of crude vegetable and animal oils (edible oils)

10490

Reserved for MSMBC

Agriculture

40

Manufacture of copra, fiber, coconut shell charcoal, dust, nata de coco

10421

Reserved for MSMBC

Agriculture

41

Manufacture of coconut oil

10422

Reserved for MSMBC

Agriculture

42

Manufacture of palm oil

10431

Reserved for MSMBC

Agriculture

43

Manufacture of cotton fiber

01630

Reserved for MSMBC

Agriculture

44

Manufacture of cotton seeds

10490

Reserved for MSMBC

Agriculture

45

Manufacture of peeling, cleaning, drying, and sorting of plantation products (cocoa beans and coffee beans)

10399

Reserved for MSMBC

Agriculture

46

Manufacture of cashews for dried cashew nut and cashew nut shell liquid (CNSL)

10614

Reserved for MSMBC

Agriculture

47

Manufacture of peppercorns for dried white peppercorns and dried black peppercorns

10614

Reserved for MSMBC

Agriculture

48

Manufacture of cane sugar, sugar cane top and sugar cane bagasse

10721

Reserved for MSMBC

Agriculture

49

Manufacture of black tea/green tea

10763

Reserved for MSMBC

Agriculture

50

Manufacture of dried tobacco leaves

12091

Reserved for MSMBC

Agriculture

51

Manufacture of rubber for sheets, concentrated latex

22122

Reserved for MSMBC

Agriculture

52

Manufacture of rude jatropha oil

20294

Reserved for MSMBC

Agriculture

53

Breeding and raising of swine (pigs) of less than or equivalent to 125 in number

01450

Reserved for MSMBC

Agriculture

54

Breeding and raising of native chickens, and crossbreeding

01463

Reserved for MSMBC

Agriculture

55

Operation of other plantation forests (inter alia, sugar palms, candlenuts, tamarind seeds, charcoal raw materials, cinnamon)

02119

Reserved for MSMBC

Forestry

56

Gathering (processing) of forest products: Oleo pine resin

02303

Reserved for MSMBC

Forestry

57

Gathering (processing) of forest products: Bamboo

02308

Reserved for MSMBC

Forestry

58

Production of swallow nests in nature

01469

Reserved for MSMBC

Forestry

59

Sawmiling and planing of wood (production capacity of up to 2000 M3/year)

16101

Reserved for MSMBC

Forestry

60

Processing of rattan (Primary industry)

16104

Reserved for MSMBC

Forestry

61

Forest production: rattan

02131

Partnership

Forestry

62

Forest production: oleo pine resin

02132

Partnership

Forestry

63

Forest production: bamboo

02134

Partnership

Forestry

64

Forest production: shorea javanica

02135

Partnership

Forestry

65

Forest production: agarwood

02136

Partnership

Forestry

66

Production of shellac, alternative food crops (sago), gums, and honeybee farming

02139

Partnership

Forestry

67

Production of silkworm cocoon (natural silk farming)

01492

Partnership

Forestry

68

Hatchery of sea fish

03212

Partnership

Marine Affairs and Fisheries

69

Hatchery of brackishwater fish

03252

Partnership

Marine Affairs and Fisheries

70

Hatchery of freshwater fish

03236

Partnership

Marine Affairs and Fisheries

71

Rearing of sea fish

03211

Partnership

Marine Affairs and Fisheries

72

Rearing of brackishwater fish

03251

Partnership

Marine Affairs and Fisheries

73

Rearing of freshwater fish

03221

Partnership

Marine Affairs and Fisheries

74

Processing of fishery products (Fish Processing Units): Salting/drying of fish and biota from other waters

10211

Partnership

Marine Affairs and Fisheries

75

Processing of fishery products (Fish Processing Units): Smoking of fish and biota from other waters

10212

Partnership

Marine Affairs and Fisheries

76

Processing of fishery products (Fish Processing Units): Fish yeasting/fermentation and other, cooked products (for extraction and fish jelly)

10215 10779

Partnership

Marine Affairs and Fisheries

77

Processing of fishery products (Fish Processing Units): Processing of minced fish and surimi

10216

Partnership

Marine Affairs and Fisheries

78

Marketing, distribution, wholesale, and export of fishery products

46206

Partnership

Marine Affairs and Fisheries

79

Processing of fish: boiling of fish

10214

Reserved for MSMBC

Industry

80

Manufacture of soybean fermented foods in cake form

10391

Reserved for MSMBC

Industry

81

Manufacture of soybean curds

10392

Reserved for MSMBC

Industry

82

Manufacture of perishable prepared cakes (deep-fried, boiled or steamed cakes)

10792

Reserved for MSMBC

Industry

83

Manufacture of foods from soybeans and beans (leguminous), other than soy sauce, tempe (soybean fermented cakes) and tahu (soybean curds)

10793

Reserved for MSMBC

Industry

84

Manufacture of krupuk (crackers), keripik (flakes), peyek (biscuits fried in spiced flour) and the like

10794

Reserved for MSMBC

Industry

85

Manufacture of palm sugar/Javanese sugar/red sugar

10722

Reserved for MSMBC

Industry

86

Milling (peeling and cleaning) of roots and tubers

01630

Reserved for MSMBC

Industry

87

Dyeing of yarns of natural fibers or man-made fibers for dyed/imprinted yarns, ikat, with handlooms

13122

Reserved for MSMBC

Industry

88

Printing of fabrics

13133

Reserved for MSMBC

Industry

89

Manufacture of hand-drawn batik

13134

Reserved for MSMBC

Industry

90

Manufacture of knitted/crocheted fabrics, especially lace

13911

Reserved for MSMBC

Industry

91

Embroidery

13912

Reserved for MSMBC

Industry

92

Plaiting materials of rattan and bamboo

16291

Reserved for MSMBC

Industry

93

Plaiting materials of plants other than rattan and bamboo

16292

Reserved for MSMBC

Industry

94

Manufacture of wood carving, except furniture

16293

Reserved for MSMBC

Industry

95

Manufacture of kitchenware of wood, rattan and bamboo

16294

Reserved for MSMBC

Industry

96

Products of wood, rattan, cork not elsewhere classified

16299

Reserved for MSMBC

Industry

97

Manufacture of traditional musical instruments

32201

Reserved for MSMBC

Industry

98

Manufacture of mukena, scarves, headscarves, and other traditional apparel

14111

Reserved for MSMBC

Industry

99

Smoking of rubber

22121

Reserved for MSMBC

Industry

100

Manufacture of clay household goods, specifically for earthenware

23932

Reserved for MSMBC

Industry

101

Manufacture of hand tools for agricultural hand tools for land preparation, production process, harvesting, post-harvest, and cultivation, except mattocks and spades

25931

Reserved for MSMBC

Industry

102

Carpentry and cutting hand tools, with manual or semi-mechanical process

25932 25933 25934

Reserved for MSMBC

Industry

103

Maintenance and repair of motorcycles other than those integrating with sale of motorcycles (agents / distributors)

45407

Reserved for MSMBC

Industry

104

Repair of personal and household goods

95220 95240 95290

Reserved for MSMBC

Industry

105

Manufacture of copra

10421

Partnership

Industry

106

Manufacture of pickled fruits and vegetables

10311

Partnership

Industry

107

Manufacture of soy sauce

10771

Partnership

Industry

108

Manufacture of powdered and sweetened condensed milk

10520

Partnership

Industry

109

Manufacture of stamped batik

13134

Partnership

Industry

110

Manufacture of processed rattan

16104

Partnership

Industry

111

Manufacture of preserved rattan, bamboo and the like

16103

Partnership

Industry

112

Manufacture wooden goods (builders’ carpentry and joinery) (manufacture of mouldings and construction material components)

16221

Partnership

Industry

113

Manufacture of essential oils

20294

Partnership

Industry

114

Manufacture of dried tobacco and processed tobacco

12091

Partnership

Industry

115

Manufacture of clay/ceramic bricks

23921

Partnership

Industry

116

Manufacture of other clay/ceramic products

23939

Partnership

Industry

117

Manufacture of lime

23942

Partnership

Industry

118

Manufacture of articles of cement

23951

Partnership

Industry

119

Manufacture of articles of lime

23952

Partnership

Industry

120

Manufacture of other articles of cement and lime

23959

Partnership

Industry

121

Manufacture of nails, bolts and nuts

25952

Partnership

Industry

122

Manufacture of components and parts of engines/ turbines (prime movers)

28113

Partnership

Industry

123

Manufacture of pumps and compressors

28130

Partnership

Industry

124

Manufacture of two-and three-wheeled motor vehicle components and fittings

30912

Partnership

Industry

125

Manufacture of bicycle and pedicab fittings

30922

Partnership

Industry

126

Manufacture of agricultural machine tools with medium technology such as paddy threshers, corn shellers, and hand tractors

28210

Partnership

Industry

127

Manufacture of wooden ships for marine tourism and fishing

30111 30120

Partnership

Industry

128

Manufacture of devices and fittings of wooden ships for marine tourism and fishing

30113

Partnership

Industry

129

Manufacture of jewelry articles of precious metal for personal use

32112

Partnership

Industry

130

Manufacture of jewelry articles of precious metal for non-personal use

32113

Partnership

Industry

131

Manufacture of jewelry articles of non-precious metal for non-personal use

32120

Partnership

Industry

132

Manufacture of precious stones

32111

Partnership

Industry

133

Manufacture of handicraft not elsewhere classified

32903

Partnership

Industry

134

Recovery of non-metal materials

38302

Partnership

Industry

135

Manufacture of cane sugar (white sugar, refined sugar and raw sugar) from sugar cane, through partnership, in a nucleaus-plasma system, with 20% of farmland area

10721

Partnership

Industry

136

Construction services (construction contractors) with simple and medium technology and/or small and medium risks and/or work value of up to Rp50,000,000,000

00000

Reserved for MSMBC

Public Works

137

Business services/construction consultancy services with simple/medium technology and/or small/medium risks and/or work value less than Rp10,000,000,000

00000

Reserved for MSMBC

Public Works

138

Retail sale via mail order houses and via internet

47911 47912 47913 47914

Partnership

Trade

139

Travel agents

79111

Reserved for MSMBC

Tourism and Creative Economy

140

Homestays

55130

Reserved for MSMBC

Tourism and Creative Economy

141

Art studios

90001

Reserved for MSMBC

Tourism and Creative Economy

142

Tour guides

79921

Reserved for MSMBC

Tourism and Creative Economy

143

Radio and television community broadcasters

60102 60202

Reserved for MSMBC

Communications and Informatics

144

Home and building cable wiring

43212

Reserved for MSMBC

Communications and Informatics

145

Internet cafés

61994

Reserved for MSMBC

Communications and Informatics

There are 16 business fields that are open under specific conditions: 

  1. Agriculture
  2. Forestry
  3. Marine Affairs and Fisheries
  4. Energy and Mineral Resources
  5. Industry
  6. Defense and Security
  7. Public Works
  8. Trade
  9. Tourism and Creative Economy
  10. Transportation
  11. Communications and Informatics
  12. Finance
  13. Banking
  14. Employment
  15. Education
  16. Health

Kindly find the details in the table below.

List of Business Fields That are Open under Specific Conditions:

 

 

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