Draft Regulation of the President of 2021

With the exception of the various business sectors which are specifically closed to investment and activities which may only be conducted by the central government, all business sectors are now open to investment, as follows:
1) Priority business sectors;
2) Business sectors which are allocated to or which are partnering with cooperatives and micro-, small- and medium-scale enterprises ("SME");
3) Business sectors that meet certain requirements; and
4) Various business sectors that do not fall into any of the above categories.

Priority business sectors comprise businesses that meet the following criteria:
1) Must be included as a part of nationally strategic programs/projects;
2) Must be capital intensive;
3) Must be labor-intensive;
4) Must utilize advanced technologies;
5) Must be categorized as pioneering industries;
6) Must engage in export orientation/import substitution; and/or
7) Must be oriented towards research and development, and towards innovative activities. All investors which invest in priority business sectors may be granted fiscal and/or non-fiscal incentives.

Business sectors that are allocated or which are partnering with cooperatives and SME are to be determined based on the following criteria:
1) The relevant business activities must not utilize any advanced technologies or must utilize simple technologies;
2) Business activities that have a specific process, are labor-intensive and that have a special and hereditary cultural heritage; and
3) Business capital for the relevant activities must not exceed IDR 10 billion, excluding any land and buildings which are used as business premises.

Foreign investors can only carry out business activities in large-scale enterprises that have investment values of more than IDR 10 billion, excluding any land and buildings which are used as business premises. However, this provision does not include foreign investments in technology-based startups that are undertaken within special economic zones, which are permitted to amount to less than or equal to IDR 10 billion.