Market Entry Checklist
Indonesia Market Entry Checklist: What Every Foreign Investor Needs to Do
A structured checklist covering the full market entry process — from initial sector assessment through company incorporation, licensing, and first-year compliance obligations.
Phase 1: Pre-Entry Assessment
- Confirm the sector is open to foreign investment (Positive Investment List check)
- Determine applicable maximum foreign ownership percentage
- Identify the appropriate Indonesian Business Classification Code (KBLI) business classification code
- Assess whether a wholly-owned PT PMA or a joint venture structure is more appropriate
- Evaluate available tax incentives (pioneer industry, SEZ, super deduction)
- Identify applicable sector regulator (OJK, BPOM, ESDM, etc.)
- Assess capital requirements against the Rp 10 billion minimum
Phase 2: Company Incorporation
- Reserve company name through Ministry of Law and Human Rights
- Engage a licensed Indonesian notary for the Deed of Establishment
- Obtain Ministry of Law ratification (Ministry of Law and Human Rights)
- Register on the OSS portal and obtain NIB
- Deposit minimum paid-up capital in a company bank account
- Register for corporate taxpayer ID (Tax Identification Number (NPWP))
- Register as VAT-taxable entrepreneur (VAT-registered entrepreneur (PKP)) if applicable
Phase 3: Sector Licensing
- Apply for sector-specific licenses through OSS (if medium-high or high risk)
- Submit for technical ministry verification if required
- Obtain environmental permit (AMDAL or UKL-UPL) if required
- Apply for location permit / building permit if establishing physical premises
- Register with sector regulator (OJK, Bank Indonesia, BPOM, etc.) if applicable
Phase 4: Operational Compliance
- Set up quarterly and annual Investment Activity Report (LKPM) investment activity reporting to BKPM
- Implement Personal Data Protection Law compliance (privacy policy, DSAR process, DPA with vendors)
- Establish employment contracts complying with Manpower Law and Job Creation Law
- Register employees for social security programs (National Social Security (Employment) and National Social Security (Health))
- Set up monthly tax filing and remittance obligations
- Comply with import/export licensing if applicable
This checklist covers the standard process. Requirements vary significantly by sector, location, investment size, and structure. A Market Entry Brief provides a checklist and analysis tailored specifically to your situation.
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A structured research memo covering the specific requirements, timeline, and risks for your sector and investment structure — not a generic checklist, but analysis built around your situation.
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