Foreign Investment Law

Overview

Foreign investment in Indonesia is regulated under Law Number 25 of 2007 concerning Investment and sectoral regulations, including the prevailing Positive Investment List. The regulatory framework determines ownership limitations, licensing requirements, and operational obligations for foreign investors.

Establishing and operating a Foreign Investment Company (PMA) requires careful structuring to comply with capital requirements, sectoral restrictions, and reporting obligations imposed by the Ministry of Investment / BKPM and other authorities.

Luthfi Yazid DHH Law Firm advises multinational corporations, private investors, and joint venture partners in structuring secure and compliant investment vehicles within Indonesia’s regulatory landscape.

How We Can Help

• Establishing and structuring PMA companies.
• Advising on foreign ownership limitations and sectoral restrictions.
• Drafting joint venture agreements and cross-border investment contracts.
• Conducting regulatory feasibility and compliance assessments.
• Assisting with licensing through OSS and BKPM.
• Advising on nominee structure risks and mitigation strategies.
• Managing post-investment compliance and reporting obligations.

Our Approach

We prioritize legal security, transparency, and regulatory certainty. Our approach ensures that foreign investment structures are commercially effective while fully compliant with Indonesian investment laws and sector-specific regulations.