From Restriction to Opportunity: Positive Investment List<\/h2>\n![\"Indonesia\u2019s](\"http:\/\/investinasia.id\/blog\/wp-content\/uploads\/2025\/07\/shipbuilding3.webp\")
Indonesia\u2019s Omnibus Law: InvestinAsia’s Guide for Foreign Investors, Businesses, and Employers (pexels.com)<\/figcaption><\/figure>\nBefore 2020, Indonesia maintained a Negative Investment List<\/a> that restricted foreign participation in many industries. The Omnibus Law reversed this approach through the Positive Investment List<\/a>, identifying which sectors are now open for 100% foreign ownership.<\/p>\nPriority sectors, such as renewable energy, infrastructure, healthcare, and technology, also benefit from tax holidays<\/a>, simplified licensing, and import incentives.<\/p>\nThis change allows investors to explore industries previously off-limits, giving multinational companies<\/a> and startups greater flexibility in establishing or expanding their operations.<\/p>\nAlso read:<\/strong> Top Foreign Investment Sectors in Indonesia<\/a><\/strong><\/p>\nSimplified Company Formation and Structure<\/strong><\/h2>\nThe Omnibus Law overhauled the process of company formation:<\/p>\n
\n- Minimum capital requirement removed:<\/strong> Investors can now determine authorized capital freely for limited liability companies (Perseroan Terbatas\u00a0or “PT”<\/a>).<\/li>\n
- Single-shareholder PT (One-Person Company)<\/strong> introduced for small enterprises.<\/li>\n
- PT PMA<\/strong><\/a> remains the preferred structure for foreign-owned entities, offering limited liability and 100% ownership<\/a> in eligible sectors.<\/li>\n<\/ul>\n
This makes Indonesia\u2019s company setup process more aligned with global business practices, reducing entry barriers for new market entrants.<\/p>\n
Also read: The Types of Companies and Business Entities in Indonesia<\/a><\/strong><\/p>\nRisk-Based Licensing through OSS-RBA<\/strong><\/h2>\nLicensing has shifted to a risk-based framework under the OSS-RBA (Online Single Submission \u2013 Risk-Based Approach)<\/a>.<\/p>\n\n- Low-risk businesses<\/strong> only need a Business Identification Number (NIB).<\/li>\n
- Medium-risk businesses<\/strong> must meet standard compliance criteria.<\/li>\n
- High-risk sectors<\/strong> require full permits, environmental assessments, and certification.<\/li>\n<\/ul>\n
This digital system integrates environmental and spatial planning databases, ensuring faster processing and transparent monitoring\u2014critical for real estate, manufacturing, and energy projects.<\/p>\n
Also read:<\/strong> Why Indonesia\u2019s OSS System Still Confuses Foreign Investors<\/a><\/strong><\/p>\nEmployment and Labor Law Reforms<\/strong><\/h2>\n![\"Indonesia\u2019s](\"http:\/\/investinasia.id\/blog\/wp-content\/uploads\/2025\/06\/employee.webp\")
Indonesia\u2019s Omnibus Law: InvestinAsia’s Guide for Foreign Investors, Businesses, and Employers (pexels.com)<\/figcaption><\/figure>\nThe Manpower Cluster within the Omnibus Law redefines employment in Indonesia:<\/p>\n
\n- Fixed-term contracts extended<\/strong> from 3 to 5 years.<\/li>\n
- Outsourcing expanded<\/strong> to cover all business functions.<\/li>\n
- Regional minimum wages<\/strong> now linked to local economic indicators.<\/li>\n
- Unemployment insurance (JKP)<\/strong> introduced for job loss protection.<\/li>\n<\/ul>\n
Employers hiring foreigners must secure RPTKA<\/a> approval from the Ministry of Manpower, except for shareholders or high-level management roles. However, HR-related positions remain closed to expatriates.<\/p>\nThese changes give employers more flexibility while maintaining worker protection and regulatory oversight.<\/p>\n
Also read:<\/strong> Indonesia Labour Law & Employment Regulations: Complete Guide<\/a><\/strong><\/p>\nOngoing Legal Adjustments and Compliance<\/h2>\n
The Omnibus Law has faced judicial reviews and amendments, notably after the Constitutional Court\u2019s conditional ruling in 2021. Subsequent updates in Law No. 6 of 2023 and various implementing regulations continue refining investment, licensing, and labor provisions.<\/p>\n
For foreign investors, this means that compliance is a moving target, staying informed and partnering with local experts is crucial to avoid legal and operational risks.<\/p>\n
Also read; What Happens If You Operate a Business in Indonesia Without a Proper License?<\/a><\/strong><\/p>\nPartnering with Experts for Seamless Market Entry<\/strong><\/h2>\nAs Indonesia\u2019s legal and regulatory environment evolves, foreign investors need a reliable local partner to ensure smooth setup, compliance, and strategic growth.<\/p>\n
At InvestinAsia<\/strong>, we help you establish and expand your business in Indonesia with end-to-end services, from company registration and business licensing to visa, work permit, and investment advisory.<\/p>\nOur expert team navigates the complexities of the Omnibus Law, OSS-RBA, and Positive Investment List on your behalf\u2014so you can focus on scaling your business confidently.<\/p>\n
Learn more about InvestinAsia’s complete services<\/strong><\/a>:<\/p>\n\n- PMA registration in Indonesia (Foreign Company)<\/a><\/li>\n
- Representative office registration in Indonesia<\/a><\/li>\n
- Indonesia Local PT PMDN Set Up<\/a><\/li>\n
- Indonesian Virtual office setup<\/a><\/li>\n
- Business registration number in Indonesia<\/a><\/li>\n
- Business Licenses in Indonesia<\/a><\/li>\n
- Trademark Registration in Indonesia<\/a><\/li>\n
- Franchise License in Indonesia<\/a><\/li>\n
- Indonesia Visa and Stay Permits Application<\/a><\/li>\n
- Indonesia Tax Consultant and Compliance<\/a><\/li>\n<\/ul>\n
Before 2020, Indonesia maintained a Negative Investment List<\/a> that restricted foreign participation in many industries. The Omnibus Law reversed this approach through the Positive Investment List<\/a>, identifying which sectors are now open for 100% foreign ownership.<\/p>\n Priority sectors, such as renewable energy, infrastructure, healthcare, and technology, also benefit from tax holidays<\/a>, simplified licensing, and import incentives.<\/p>\n This change allows investors to explore industries previously off-limits, giving multinational companies<\/a> and startups greater flexibility in establishing or expanding their operations.<\/p>\n Also read:<\/strong> Top Foreign Investment Sectors in Indonesia<\/a><\/strong><\/p>\n The Omnibus Law overhauled the process of company formation:<\/p>\n This makes Indonesia\u2019s company setup process more aligned with global business practices, reducing entry barriers for new market entrants.<\/p>\n Also read: The Types of Companies and Business Entities in Indonesia<\/a><\/strong><\/p>\n Licensing has shifted to a risk-based framework under the OSS-RBA (Online Single Submission \u2013 Risk-Based Approach)<\/a>.<\/p>\n This digital system integrates environmental and spatial planning databases, ensuring faster processing and transparent monitoring\u2014critical for real estate, manufacturing, and energy projects.<\/p>\n Also read:<\/strong> Why Indonesia\u2019s OSS System Still Confuses Foreign Investors<\/a><\/strong><\/p>\n The Manpower Cluster within the Omnibus Law redefines employment in Indonesia:<\/p>\n Employers hiring foreigners must secure RPTKA<\/a> approval from the Ministry of Manpower, except for shareholders or high-level management roles. However, HR-related positions remain closed to expatriates.<\/p>\n These changes give employers more flexibility while maintaining worker protection and regulatory oversight.<\/p>\n Also read:<\/strong> Indonesia Labour Law & Employment Regulations: Complete Guide<\/a><\/strong><\/p>\n The Omnibus Law has faced judicial reviews and amendments, notably after the Constitutional Court\u2019s conditional ruling in 2021. Subsequent updates in Law No. 6 of 2023 and various implementing regulations continue refining investment, licensing, and labor provisions.<\/p>\n For foreign investors, this means that compliance is a moving target, staying informed and partnering with local experts is crucial to avoid legal and operational risks.<\/p>\n Also read; What Happens If You Operate a Business in Indonesia Without a Proper License?<\/a><\/strong><\/p>\n As Indonesia\u2019s legal and regulatory environment evolves, foreign investors need a reliable local partner to ensure smooth setup, compliance, and strategic growth.<\/p>\n At InvestinAsia<\/strong>, we help you establish and expand your business in Indonesia with end-to-end services, from company registration and business licensing to visa, work permit, and investment advisory.<\/p>\n Our expert team navigates the complexities of the Omnibus Law, OSS-RBA, and Positive Investment List on your behalf\u2014so you can focus on scaling your business confidently.<\/p>\n Learn more about InvestinAsia’s complete services<\/strong><\/a>:<\/p>\nSimplified Company Formation and Structure<\/strong><\/h2>\n
\n
Risk-Based Licensing through OSS-RBA<\/strong><\/h2>\n
\n
Employment and Labor Law Reforms<\/strong><\/h2>\n
\n
Ongoing Legal Adjustments and Compliance<\/h2>\n
Partnering with Experts for Seamless Market Entry<\/strong><\/h2>\n
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