Indonesia isn’t just offering tax holidays to attract foreign investment—it’s building a complete ecosystem to support business growth. From regulatory simplification and infrastructure development to streamlined immigration and licensing services, the country has expanded its support far beyond fiscal perks.
For global companies eyeing expansion into Southeast Asia, Indonesia now offers one of the region’s most comprehensive non-tax incentive frameworks.
Also read: Indonesia Investment Incentives: Government Support for Foreign Businesses
Non-Tax Incentives for Foreign Business
Indonesia understands that tax breaks alone aren’t enough to sustain investor interest. That’s why it has introduced key non-fiscal incentives aimed at lowering operational barriers and reducing business risk.
Foreign investors now benefit from 100% ownership rights in most sectors, thanks to Presidential Regulation No. 49/2021. This significantly simplifies operations and supports long-term strategic planning. The Job Creation Law (Omnibus Law) consolidates over 70 previous regulations, offering a cleaner and more predictable legal landscape.
Streamlined licensing via the Online Single Submission (OSS) system categorizes businesses by risk and tailors procedures accordingly. This approach reduces processing time and ensures that small and large enterprises receive services suited to their needs.
Government-Backed Infrastructure and Sector Support
Indonesia’s infrastructure agenda directly supports investor operations. New industrial parks like Batang Industrial Estate provide ready-to-use facilities, access to utilities, and logistics integration. Businesses can lease land at favorable rates or even qualify for free land use in strategic sectors.
In the ambitious Nusantara Capital City (IKN) project, investors gain access to custom facilities, land preparation services, and public-private partnership (PPP) opportunities. This massive initiative is engineered to global standards, with ample opportunities for foreign firms to contribute and profit.
Additionally, sector-specific support targets 246 prioritized industries including digital technology, renewable energy, and pharmaceuticals. These sectors receive fast-tracked environmental permits, technical assistance, and coordination with research bodies.
Also read: FDI Legal Protections in Indonesia: More Than Just Incentives
Administrative Efficiency and Investor Services
Beyond policies, Indonesia offers hands-on services through the Ministry of Investment/BKPM and its overseas Indonesia Investment Promotion Centers (IIPCs). These bodies help with planning, licensing, site selection, and regulatory navigation—making market entry smoother.
BKPM’s aftercare services ensure continued support after setup, providing a crucial safety net for foreign enterprises. Customized assistance is available depending on business size, industry, and geographic location.
Investor immigration is also being optimized. Indonesia offers simplified visa and KITAS processes for foreign executives and technical staff. This accelerates operational readiness, especially in sectors reliant on specialist personnel.
Also read; Indonesia vs Vietnam: Which Offers Better FDI Incentives?
How to Qualify for Indonesia’s Support
To access these non-tax incentives, investors must register through the OSS platform and align with Indonesia’s Positive Investment List. Strategic projects, particularly in designated economic zones or priority sectors, often receive expedited handling and additional perks.
Engaging with the Indonesia Investment Coordinating Board (BKPM) early helps align investment plans with national development goals, unlocking greater benefits. For optimal results, most companies seek assistance from local incorporation experts to navigate the legal landscape efficiently.
Also read: How to Apply for Indonesia Investment Incentives via OSS
Invest Smarter with InvestinAsia
Navigating Indonesia’s business setup process is easier when you have expert guidance. InvestinAsia offers comprehensive Indonesia company registration services tailored for foreign investors.
From securing OSS licenses to identifying sector-specific incentives, InvestinAsia helps streamline every step—so you can focus on growing your business. Our local expertise ensures compliance, clarity, and confidence in your Indonesian expansion.
As Indonesia’s premier company registration service, InvestinAsia offer:
- Foreign company / PMA registration in Indonesia
- Indonesia representative office registration
- PT PMDN Set Up
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses
- Indonesia Trademark Registration
- Indonesia Tax Consultant and Compliance Services
Our end-to-end guidance helps you capture the full value of Indonesia’s investment incentives—seamlessly and on time.
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
FAQs
What non-tax incentives does Indonesia offer to foreign investors?
Indonesia offers regulatory reform, 100% foreign ownership in most sectors, streamlined licensing (OSS), infrastructure access, and investor immigration facilitation.
How do I access Indonesia’s non-tax support mechanisms?
Register your business via the OSS system, comply with sector regulations, and consult with BKPM or a local service like InvestinAsia for guidance.
Is the Nusantara Capital City open to foreign investment?
Yes. Foreign investors can join the Nusantara project through PPP schemes, with access to custom facilities, land provisioning, and infrastructure perks.
Is a local partner required to establish a business in Indonesia?
In most sectors, no. Presidential Regulation No. 49/2021 allows 100% foreign ownership in many industries.
What role does BKPM play for investors?
BKPM coordinates investment approvals, offers aftercare support, and connects investors with relevant government and private stakeholders.
References:
- Indonesian Directorate General of Immigration. Investor Temporary-Stay Visa (Index E28A). https://www.imigrasi.go.id/wna/permohonan-visa-republik-indonesia/klasifikasi-visa-tinggal-terbatas-indeks-e28a?golden_visa=0
- BKPM. Indonesia Investment Guidebook. https://bkpm.go.id/storage/file/pdf/1683512273.pdf
