One of the critical aspects that foreign investors need to understand when considering investments in Indonesia is the Negative Investment List, commonly referred to as DNI (Daftar Negatif Investasi). This list plays a pivotal role in determining which industries and sectors are open for foreign investment and to what extent.
In this article, we will delve into the intricacies of the Negative Investment List in Indonesia, shedding light on its significance and implications for investors.
Also read: Investing in Indonesia: Great Opportunity for Global Investors
What is Negative Investment List (DNI) in Indonesia?
Daftar Negatif Investasi (DNI) or the Negative Investment List in Indonesia is a list of business sectors in which foreign investment is either prohibited, permitted, or conditionally permitted. The most recent DNI was authorized via Presidential Regulation No. 49 of 2021, which modifies Presidential Regulation No. 10 of 2021.
The DNI is divided into four categories:
Priority sectors
Many sectors are open to 100% foreign investment, with several fiscal and non-fiscal incentives available (depending on the business line).
Business fields with specific requirements
These sectors are open to foreign investment, but subject to certain requirements, such as minimum investment thresholds, local content requirements, or partnerships with Indonesian companies.
Business fields open to large enterprises with compulsory partnerships
These sectors are open to foreign investment, but only in the form of joint ventures with Indonesian companies.
Business fields closed to investment
These sectors are closed to both domestic and foreign investment.
Also read: What to Invest in Indonesia: 7 Best Sectors for Foreigner
Business Sectors Closed to Foreign Investment in Indonesia
The following is a list of business sectors that are closed to foreign investment in Indonesia:
- Narcotics
- Psychotropics
- Precursors and hazardous chemicals
- Gambling
- Pornography
- Weapons and ammunition
- Explosives
- Nuclear energy
- Certain defense industries
- Certain types of mining
Includes the mining of gold, silver, copper, nickel, and bauxite. - Certain types of forestry
Includes the logging of natural forests and the cultivation of certain types of trees, such as teak and sandalwood. - Certain types of fishing
Includes the fishing of certain types of fish, such as tuna and lobster. - Certain types of agriculture
Includes the cultivation of certain types of crops, such as rice, corn, and soybeans. (read: Top 10 Agriculture Companies in Indonesia) - Certain types of transportation
Includes the operation of certain types of transportation services, such as taxis, buses, and shipping lines. - Certain types of telecommunications
Includes the operation of certain types of telecommunications networks, such as cellular networks and fixed-line networks. - Certain types of media and publishing
Includes the publication of certain types of media, such as newspapers and magazines. - Certain types of financial services
Includes the operation of certain types of financial institutions, such as banks and insurance companies. - Certain types of professional services
Includes the provision of certain types of professional services, such as law and accounting.
Also read: Where to Invest in Indonesia: 7 Best Cities and Locations
It is important to note that the DNI is subject to change at any time. The Indonesian government has announced plans to further liberalize the DNI in the future, but it is not clear when these changes will take effect.
Foreign investors keen on investing in Indonesia should engage with the Indonesia Investment Coordinating Board (BKPM) or qualified investment advisors to confirm whether a particular business sector is open to foreign investment and to learn about any specific requirements that may apply.
InvestinAsia is among the companies that specialize in aiding you with company registration in Indonesia. We boast a team of seasoned experts who can guide you throughout the process of:
- PMA Company Registration in Indonesia
- Representative office registration in Indonesia
- Indonesia Local PT PMDN Set Up
- Indonesian Virtual office setup
- Business registration number in Indonesia
- Business Licenses in Indonesia
- Trademark Registration in Indonesia
- Franchise License in Indonesia
In addition to that, we can also assist you with the Indonesia Investor Visa / KITAS Application.
FAQ about Indonesia Negative Investment List
What is the Indonesia Negative Investment List (DNI)?
The DNI (Daftar Negatif Investasi) is the official list that sets out which business sectors are open, conditionally open, or closed to foreign investment in Indonesia. It determines the extent of foreign participation allowed and any special requirements such as minimum investment thresholds or local partner rules.
How is the DNI structured and what do the categories mean?
The DNI is divided into categories: sectors open to 100% foreign ownership (often with incentives), sectors open but subject to requirements (e.g., minimum investment, local content), sectors only allowed via mandatory joint ventures with Indonesian partners, and sectors closed to investment. Each category defines the regulatory conditions investors must meet.
Which business sectors are typically closed or restricted under the DNI?
Closed or restricted sectors commonly include narcotics-related activities, gambling, weapons and explosives, certain defense and nuclear activities, specific types of mining, selective forestry and fisheries activities, some agricultural lines, certain transport and telecom services, and particular media and financial services. Exact restrictions depend on the current Presidential Regulation and can change over time.
How can a foreign investor confirm whether a specific sector is allowed and what requirements apply?
Investors should consult the latest Presidential Regulation (e.g., PR No. 49/2021 and related texts), check BKPM (Indonesia Investment Coordinating Board) guidance and official DNI publications, and seek professional advice. Confirm specifics like minimum capital, local content rules, and required licenses before proceeding.
What are practical options if the DNI shows a sector is restricted or closed?
If a sector requires a local partner, consider forming a compliant joint venture or structuring investment via a PMA (foreign-owned company) where permitted. If a sector is fully closed, direct investment is not allowed; investors should explore adjacent permissible activities, service partnerships, or consult BKPM and legal advisors for lawful alternatives.
