Indonesia’s Omnibus Law: Positive Investment List and the Liberalization of Business Sectors

In the first of ASEAN Briefing’s Indonesia’s Omnibus Law series, we analyze Presidential Regulation 10 of 2021 (PR 10/2021) on business fields open to investment — also dubbed as the positive investment list. The regulation comes into effect on March 4, 2021.

PR 10/2021 replaces Presidential Decree No.36/2010 (Indonesia’s negative investment list) and is part of the government’s ongoing economic reforms through the issuance of the Omnibus Law.

Important sectors that had previous foreign ownership restrictions, which have now been lifted include, among others:

The government has classified business fields into four categories.

To classify as a priority sector, business enterprises must meet the following criteria:

There are 245 business fields under this category that can be found under Exhibit 1 of the positive investment list. Moreover, businesses in priority sectors are…