Indonesia Negative Investment List (DNI): Latest Update

Indonesia Negative Investment List (DNI)

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?

What is Indonesia Negative Investment List (DNI)
What is Indonesia Negative Investment List (DNI)

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

    These sectors are open to 100% foreign investment, with some fiscal and non-fiscal incentives available.

  • 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 (2023)

Indonesia Negative Investment List (DNI)
Indonesia Negative Investment List (DNI)

The following is a list of business sectors that are closed to foreign investment in Indonesia in 2023:

  • 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.

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