Indonesia's foreign ownership rules are determined by Presidential Regulation No. 10/2021, commonly called the Positive Investment List. Here is how it works and what it means for foreign investors.
Under the Positive Investment List, business sectors in Indonesia fall into three categories from a foreign investment perspective:
| Category | Description | Examples |
|---|---|---|
| Closed to Investment | No private investment allowed at all (state monopoly) | Cannabis cultivation, certain weapons manufacturing |
| Reserved for Domestic Investors | Open for investment but only by Indonesian nationals or entities | Certain small-scale retail, traditional arts, specific agriculture |
| Open with Conditions | Foreign investment allowed up to a maximum ownership percentage | Banking (up to 99%), insurance (up to 80%), toll roads (up to 100%), fintech (varies) |
Any sector not listed in the above categories is open to 100% foreign ownership without restriction.
The 2021 overhaul significantly liberalized foreign ownership rules compared to the previous 2016 Negative Investment List. Several sectors that previously had ownership caps — including e-commerce, cold chain logistics, and certain manufacturing categories — were fully opened to foreign ownership.
The change reflects Indonesia's strategy to attract foreign direct investment, particularly in labor-intensive manufacturing, technology, and green energy.
| Sector | Max Foreign Ownership | Notes |
|---|---|---|
| Manufacturing (general) | 100% | Some sub-sectors may have conditions |
| E-commerce / Digital platforms | 100% | Fully open since 2021 |
| Banking | 99% | Requires OJK licensing |
| Insurance | 80% | Requires OJK licensing |
| Fintech lending / payment | 85% | Subject to OJK Regulation |
| Healthcare / hospitals | 67% | Higher in certain regions |
| Renewable energy | 100% (IPP) | Through independent power producer scheme |
| Logistics / warehousing | 100% | Fully open |
| Mining | Varies (up to 100%) | Divestment obligations apply post-production |
Ownership limits are only one layer of the picture. Even 100%-open sectors can require sector-specific licenses, government approvals, or local partner arrangements for operational or practical reasons. A sector brief covers the full picture.
A research brief confirming the applicable ownership limits, licensing requirements, and any practical constraints for your specific sector and investment structure.
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