Investment is one of the factors that plays a crucial role in increasing economic growth in Indonesia. Besides creating new job opportunities, investment also has many impacts from one economic sector to another. The realization of investment in Indonesia has also shown improved performance compared to previous years. Therefore, the Indonesian government offers attractive investment opportunities for foreign investors who want to invest in Indonesia. However, before deciding to invest, foreign investors must understand the regulation of foreign investment in Indonesia.
Foreign Investment Regulations in Indonesia
The Indonesian government has regulated foreign investment, which is the main regulation has regulated in Law No. 25/2007 regarding Investment. This law regulates foreign investment as well as the rights and obligations of foreign investors in making investments in Indonesia. Before making investments in Indonesia, one of the requirements for foreign investors is to obtain an investment permit by fulfilling the requirements set by the BPKM. The BPKM referred to here is a government institution that responsible for facilitating and overseeing investments in Indonesia. Foreign investment in Indonesia also has regulations regarding the limits on how much foreign investors are allowed to own. There are also several sectors that are prohibited for foreign investors.
This is very important for foreign investors to know and understand the regulations before investing in Indonesia. You can contact us for further information and we will gladly to assist you regarding investment for your business.