For any foreign investor, one document defines the shape of a lawful market entry: the Positive Investment List (Daftar Positif Investasi). It is Indonesia's sovereign expression of where foreign capital is welcomed, where genuine local partnership is required, and where certain sectors are kept for Indonesians. Reading it correctly — and respecting what it reserves — is the starting point of investing in Indonesia in good faith.
A national policy, not a hurdle
Indonesia historically used a Negative Investment List that spelled out what was restricted. The current framework opens most sectors by default, while a defined set of activities remains conditional, restricted, or reserved. These limits are deliberate and legitimate: they protect strategic sectors, encourage real partnership with Indonesian businesses, and ensure that foreign investment strengthens rather than displaces the domestic economy.
How participation is defined
Every business activity in Indonesia maps to a KBLI code (the standard business classification). The level of foreign participation is tied to that code. Broadly, an activity may be:
- Fully open — up to 100% foreign ownership
- Conditionally open — subject to requirements such as local partnership, location, or licensing
- Capped — a defined maximum foreign share, with the remainder held by Indonesian partners
- Reserved — kept for domestic investors or specific national priority schemes
Why the KBLI classification matters
Two companies can describe themselves identically yet fall under different KBLI codes — with different rules. Identifying the correct classification is simply how an investor stays within the bounds Indonesia has set, accurately and in good faith.
The list is not an obstacle to work around. It is Indonesia telling you clearly where your capital is welcome — and where it is right to partner with, or make way for, local participation.
Reading it properly before you commit
- Identify the exact KBLI code(s) for your intended activity
- Confirm the level of foreign participation allowed for each code
- Where local partnership is required, treat it as a genuine partnership, not a formality
- Check any conditional requirements (minimum capital, location, licensing)
The Positive Investment List reflects a clear and reasonable bargain: Indonesia opens most of its economy to foreign capital while reserving the right to protect what is strategic to its people. Investors who respect that balance — partnering sincerely where asked and staying within the limits set — build ventures that are welcome, lawful, and durable. Grafasco maps your activity to the correct KBLI codes and structures your entry to honour both your objectives and Indonesia's rules.