Maximum Share in Direct Foreign Investment in Indonesia

What is the maximum share in direct foreign investment? If you make investment in Indonesia, foreigner could not have 100 percent share in all types of investment. Some areas are closed to foreign investment and many areas are open.

The government of Indonesia has made regulation on this. It is clearly stated in the Presidential Decree No. 77 of 2007, which is amended by Presidential Decree No. 111 of 2007.

Basically, this regulation stated share limit of foreign investor in a foreign company. The rest of the share will be owned by local people or citizen of Indonesia.

The following is a list of business areas in which foreign investor has a share limit.

NO.
BUSINESS AREA
KBLI CODE
SHARE LIMIT
DEPARTMENT
1.
Offshore Oil and Gas Drilling Services
11200
95%
Energy and Mineral
2.
Engineering, Procurement and Construction Services
74140
Energy and Mineral
3.
Electric Power
40101
95%
Energy and Mineral
4.
Hotel 1-2 Star
55115
50%
Culture and Tourism
5.
Professional Convention Organizer (PCO)
63440
50%
Culture and Tourism
6.
Pharmaceutical Industry
24232
75%
Health Dept.
7.
Hospital Services
85113
65%
Health
8.
Testing, Calibration, and Maintenance Services of Health Equipment
74220
49%
Health
9.
Business Consulting and Management for Hospital
74140
65%
Health
10.
Leasing
65910
85%
Finance
11.
Life Insurance
66010
80%
Finance
12.
Telecommunication Network
64210
49%
General Work
13.
Construction Service (Site Preparation for Mine)
45100
55%
General Work
14.
Drinking Water
41001
95%
General Work
15.
Higher Education
74140
49%
Education
16.
Business and Management Consulting Service
74140
49%
Trade
17.
Direct Selling
52711
60%
Trade
18.
Transportation
49%
Transportation Dept.
19.
Agriculture
95%
Agriculture
20.
Labor Supply, Recruitment and Placement
74910
49%
Labor and Tourism


Related Link

Direct Foreign Investment in Indonesia

From Maximum Share for Foreign Investment to Home


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