Establishing A University In Indonesia With Foreign Investment

A regulation issued in 2018 - Minister of Research and Higher Education ("MRHE") Regulation No. 53 of 2018 regarding Foreign Higher Education dated October 30, 2018 ("MRHE Regulation 53/2018") - has made it possible for foreign entities to establish a university in Indonesia, subject to certain conditions and restrictions, including cooperation with a local university.

Indonesia's higher education sector under the so-called Negative Investment List, or DNI, is open to foreign investment, subject to any limitations on such investment.

Pursuant to the 2017 Indonesian Standard Classification of Business Fields (Klasifikasi Baku Lapangan Usaha Indonesia or "KBLI"), the higher education sector falls under KBLI 85321. This KBLI number covers the establishment of an institution of higher learning, managed by a private institution, to engage in the areas of research, knowledge, technology and the arts. The KBLI is used to classify economic activities in Indonesia,