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ARTICLE · 01 DECEMBER 2025

New Indonesian Investment Rules 2025

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

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The Indonesian government recently issued a series of new investment and licensing guidelines for direct investment, replacing a set of similar regulations issued in 2021.

IndonesiaGovernment, Public Sector

The Indonesian government recently issued a series of new investment and licensing guidelines for direct investment, replacing a set of similar regulations issued in 2021.

The new regulations provide more certainty for investors in identifying their required business licences and timelines. They also relax certain investment requirements (e.g. lower minimum paid-up capital for foreign investment) and enhance government supervision and enforcement measures.

Summary

The new regulations are Government Regulation No. 28 of 2025 on the Processing of Risk-based Business Licences (GR 28/2025) and Indonesia Investment Coordinating Board (BKPM) Regulation No. 5 of 2025 on Guidelines and Procedures for Processing Risk-Based Business Licences and Investment Facilities through the Online Single Submission System (BKPM Reg 5/2025) (together, the New Regulations).1

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