The Risks of Investment in Indonesia

Indonesia is the largest economy in South East Asia. Its estimated gross domestic product, as of 2017, is US$1.020 trillion while GDP in PPP terms is US$$3.257 trillion. It is the 16th largest economy in the world by nominal GDP  and is the 7th largest in terms of GDP (PPP). As of 2017, per capita GDPContinue Reading

Operating a Business of Over-the-Top (OTT) Service in Indonesia

The number of internet users in Indonesia has been rapidly growing over the past years. Google, Facebook, Twitter and Whatsapp have all seen Indonesia as a big market. As of March this year, the number of Twitter accounts reached 328 million globally, representing a 14% increase from the same period last year. Indonesia emerged asContinue Reading

Multi-Asset Investment Fund in the Form of Collective Investment Contract

In order to support infrastructure development and maximize the role of capital market as a source of long term financing, the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) regulated OJK Regulation No. 4/POJK.04/2017 (“POJK 4/2017”) regarding Multi-Asset Investment Fund in the form of Collective Investment Contract. The regulation focuses on the collection of fundsContinue Reading

Change of Paradigm in Indonesia’s Foreign Investment Policy

Indonesia Investment Coordinating Board or Badan Koordinasi Penanaman Modal (BKPM) is in the process of revising the Investment Negative List or Daftar Negative Investasi (DNI). The decision to revise the list is mainly to reduce Indonesia’s dependency toward import goods. Indonesia is known to have an investment policy that heavily protects domestic entrepreneur and smallContinue Reading

Foreign Investment and Restriction of Foreign Ownership in Mining Sector

Foreign investors must have an Indonesian vehicle to conduct mining business activities in the form of an Indonesian limited liability company established in the framework of foreign investment to Law No. 25 of 2007 on Investment (known as Foreign Investment Company / Perusahaan Penanaman Modal Asing or “PMA”). Although mining sector is generally open toContinue Reading

Foreign Investment in Telecommunication Tower Business

Pursuant to Regulation of Ministry of Information and Communication, construction of telecommunication tower may be performed by (i) telecommunication operator; (ii) tower provider or; (iii) tower contractor/developer. Unless it is performed by a telecommunication operator, which business is allowed to have 65% of foreign ownership, construction service provider building tower for special purpose is closedContinue Reading


The new Investment Negative List is issued to create legal certainty as well as one of the pursuits to attract investors in order to invest in Indonesia. Investment Negative List is the implementation of the transparency in order that investors can easily acknowledge the list of close business fields to foreign investment or open businessContinue Reading


The Ministry of Communication and Informatics of the Republic of Indonesia issued the recent regulation on Telecommunication Equipment And Apparatus Certification by Regulation of the Minister of Communication and Informatics Number 18 of 2014 (“MCI Regulation No. 18/2014”). By the issuance of MCI Regulation No. 18/2014 which is effective on 25 June 2014, the RegulationContinue Reading

Local Content Requirement in Indonesian Oil and Gas Industry

Local content (Tingkat Komponen Dalam Negeri/TDKN) under Indonesian laws means the assessment of local product component being used on goods, services and combination of goods and services. Therefore local content can be categorized as; (i) local content of goods, (ii) local content on services and (iii) local content combination. In relation to oil and gasContinue Reading

Requirements on Vessel Operator in Indonesian Oil and Gas Industry

Vessel Ownership Vessel ownership under Indonesian Law is specified under Procedures for Foreign Ship Decree No 48 in which Article 1 (1) states that foreign vessel is a flagged vessel other than Indonesian flag and is not registered under Indonesian Ships Registration list. The same regulation provides the opportunity for foreign vessel to operate inContinue Reading

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