They include green energy, digital economy, EV, healthcare, tourism, fintech, and more.
As Southeast Asia’s largest economy, Indonesia is strategically positioning itself as a global investment magnet, especially through its priority business sectors for foreign investment in 2025.
This article will walk you through the key sectors Indonesia is opening up, the legal framework supporting foreign direct investment (FDI), and how you can strategically enter the Indonesian market backed by incentives and legal certainty.
Indonesia has consistently attracted strong FDI flows thanks to its vast consumer market, abundant natural resources, and supportive government policies. In recent years, the country has taken bold steps through the Omnibus Law and Presidential Regulation No. 10 of 2021 to further liberalize and modernize its investment climate.
In 2025, Indonesia’s focus is on sectors that drive sustainability, digital transformation, infrastructure, and local economic empowerment.
Foreign investment in Indonesia is governed by:
The Investment Coordinating Board (BKPM) or now known as the Ministry of Investment, is the main authority responsible for regulating and facilitating investments.
This regulation introduced the Positive Investment List (DPI), replacing the Negative List. It classifies business fields into:
Priority sectors are business areas that receive special treatment by the government due to their strategic importance in supporting:
These sectors are not only open to foreign ownership (often up to 100%), but they also enjoy incentives like tax holidays, investment allowances, and streamlined licensing processes.
With Indonesia aiming for net-zero emissions by 2060, the renewable energy sector is booming. Investment in solar, geothermal, hydropower, and biomass energy is highly encouraged, with government-backed power purchase guarantees and carbon credits.
Indonesia’s digital economy is projected to reach USD 146 billion by 2025. Investment opportunities include:
This is a key focus keyword sector for foreign investors due to its scalability and regulatory openness.
Indonesia holds the world’s largest nickel reserves, a core component of EV batteries. The government offers zero import duties, tax holidays, and industrial zone access for investors in:
Post-COVID recovery has boosted the demand for high-quality tourism and creative sector investments. The focus includes:
Tourism is a labor-intensive sector, hence a top priority.
Indonesia aims to reduce reliance on imported drugs and equipment. Priority sub-sectors include:
Food security remains a government priority. Sectors open for investment include:
Foreign companies with innovative agri-tech solutions are especially welcomed.
To support economic growth, massive infrastructure projects are underway, including:
Foreign investors can tap into PPP schemes and government guarantees.
Digital learning has become essential post-pandemic. Investment is open in:
Indonesia encourages foreign universities and institutions to establish campuses under local joint ventures.
Indonesia pushes for value-added production, especially in:
The downstream policy prohibits raw material exports, ensuring long-term investment prospects.
The fintech sector is booming with innovations in:
With Bank Indonesia and OJK modernizing regulations, foreign participation is welcomed under strict compliance.
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Foreign investors in priority sectors enjoy:
The Indonesian government offers a range of incentives, including:
Investors in Priority Business Sectors for Foreign Investment in Indonesia are given preferential treatment.
Local Partnerships
Some sectors still require joint ventures with local entities. Selecting a reliable local partner is crucial to navigate bureaucracy and maintain compliance.
Licensing and Compliance
Despite reforms, understanding licensing classifications, sectoral requirements, and local permits remains essential. Legal due diligence is highly recommended.
At Kusuma & Partners Law Firm, we have guided numerous foreign investors through the legal maze of Indonesian regulations. From establishing PT PMA (foreign-owned companies) to securing licenses, our clients appreciate our deep-rooted expertise, personal approach, and practical solutions. Investing in Indonesia is highly rewarding — but must be done right.
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Indonesia’s bold reforms and sectoral priorities for 2025 mark a golden opportunity for foreign investors. With a clear legal framework, digitalized systems, and strong government backing, the priority sectors for foreign investment in Indonesia are more accessible and lucrative than ever.
Are you ready to explore start your foreign investment in Indonesia? Make informed decisions with confidence, and let us guide your journey into Indonesia’s dynamic market.
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“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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