News & Announcements

W&P Newsletter – Updates On Indonesia Investment List: A Mixed Bag

Following critics from certain groups to the Presidential Regulation No. 10 of 2021 on the Investment Business Activity (“PR 10/2021”) which opened investments in alcohol beverages manufacture sector, (you can click here to see our previous analysis on PR 10/2021), Mr. Joko Widodo issued Presidential Regulation No. 49 of 2021 on Amendment of PR 10/2021 (“PR 49/2021”) to bring back the restriction on alcoholic beverage industry. Trading (retail and wholesale) of alcoholic beverages, however, continues to open for private investments, subject to the investors meeting certain strict requirements as set out under the sectoral regulations.

Aside from the prohibition of private investments in alcoholic beverages business, PR 49/2021 also reserves food and beverage e-commerce for micro, small and medium enterprises (MSMEs) – thus, the sector is no longer open for foreign investments.

In the table below, we have set out some selected sectors on the limitation of foreign investment pursuant to PR 49/2021 and our observation points:


No Business Activities (KBLI) PR 10/2021 PR 49/2021

(retail trading conducted using internet as medium)

1 E-commerce of Food Beverages, Tobacco, Chemicals, Pharmaceutical, Cosmetics and Laboratory Devices (KBLI 47911)

Open for 100% foreign investments.

Reserved for MSMEs.

Note that:

·         E-commerce business for various products (KBLI  47914); and

·         E-commerce business for other products that have not been classified in the KBLIs 47911 – 47913 (KBLI 47919),

are not on the restrictive investment list and therefore considered to remain open for 100% foreign investments.

2 E-commerce of Textile, Clothes, Footwears and Personal Goods (KBLI 47912)
3 E-commerce of Households and Kitchen Equipment (KBLI 47913)
General Industry
4 Manufacture of Soy Sauce (KBLI 10771) Open 100% for foreign investments Open for 100% foreign investments but in partnership with MSME.
5 Manufacture of Spare Parts and Component of Machineries and Turbines (KBLI 28113)
6 Manufacture of Weapons and Ammunition – Main Equipment (KBLI 25200) Subject to prior approval of Minister of Defense Maximum 49% foreign investments. Higher percentage is possible if approved by Minister of Defense on the basis of strategic interest.


There appears to be an inconsistency between the provision of PR 49/2021 and that of the Omnibus Law with regards to this particular issue. Pursuant to the Omnibus Law, private investments in any amount are subject to a prior approval from Minister of Defense. By comparison, according to PR 49/2021 foreign investments are allowed up to a maximum of 49%, and that only if foreign investors would like to invest more than 49%, a prior approval from Minister of Defense is required.

7 Manufacture of War Vehicle (KBLI 30400) No foreign ownership limitation
8 Manufacture of Defense Radar for Weapon System (KBLI 26513)
9 Manufacture of Military Aircraft (KBLI 30300)
10 Manufacture of War Ships and Boats (KBLI 30111)
Postal and Telecommunications
11 Post Activities (KBLI 53100) Foreign investments: maximum 49% limit Open for 100% foreign investments
12 Community Radio Broadcasting (KBLI 60102)

Closed for foreign investments for new incorporation.

In case there are additional new shares issued by the company, total foreign investment in the company is subject to a maximum 20% limit.

13 Community Television Broadcasting and Programing (KBLI 60202)


If you have further inquiries about this newsletter, please reach out to us at or any of our lawyers.