BUSINESS PROSPECTS

Business prospects in Indonesia

Many countries believe that doing business in Indonesia is challenging. With a population of 240 million people, Indonesia has a large domestic market to offer, over 50% of which lives in urban areas and adopt a modern lifestyle. Below are list of business fields closed to investment, as well as business fields open to investment, with condition.

LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT BUSINESS FIELDS
(Presidential Regulation Number 36/2010)
1. Agriculture: Marijuana Cultivation
 
2. Forestry:
1) Capturing of Fish Species as Stated in Appendix I Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
2) The use (removal) of coral/atoll from nature for construction material/lime/calcium and souvenir/jewelry, also live or dead coral (recent dead coral) from nature.
 
3. Industry:
1) Alcohol Beverage Industry (Liquor, Wine, and Malt Containing Beverages)
2) Mercury processed Chlorine Alkali Maker Industry
3) Chemical Material Industry that can damage the environment, such as: - Halon and others - Penta Chlorophenol, Dichloro Diphenyl Tricholoro Elhane (DDT), Dieldrin, Chlordane, Carbon Tetra Chloride, Methyl Choloroform, Methyl Bromite, Chloro Fluoro Carbon (CFC)
4) Chemical Material Industry Schedule 1 Chemical Weapon Convention (Sarin, Soman, Tabun Mustard, Levisite, Ricine, Saxitoxin, VX, etc)
 
4. Transportation:
1) Providing and Implementation of Land Terminals
2) Implementation and Operation of Weight Stations
3) Implementation of Motor Vehicle Type Tests
4) Implementation of Motor Vehicle Periodic Tests
5) Telecommunication/Supporting Facility of Shipping Navigation
6) Vessel Traffic Information System (VTIS)
7) Air Traffic Guiding Service
 
5. Communication and Informatics
Management and Implementation of Radio Frequency and Satellite Orbit Spectrum Monitoring Stations
6. Culture and Tourism
1) Public Museums
2) Historical and Ancient Heritage (temple, castle, epigraphy, remains, ancient buildings, etc)
3) Residential/Traditional Environment
4) Monuments
5) Gambling/Casinos
 
Note:
1. Business Fields Closed to Investment can be used for non-commercial purposes such as: research and development, and may obtain approval from institutions which are responsible for developing business fields.
2. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then provisions as referred here are only applicable to the business fields stated in the column of business fields.

LIST OF BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT

1. Agriculture sector
1) Main crop plant cultivation (corn, soy, peanuts, green beans, rice, cassava, sweet potato), for an area less than or equal to 25 Ha.
2) Other crop plant cultivation (for a land that is less or equal to 25 Ha)
3) Crop plant cultivation for an area less than 25 Ha:
- Other Sweetening Plant Cultivation and sugar cane
- Tobacco Plantation Cotton Plantation Textile Raw Material Crop Plantation
- Cashew Plantation
- Coconut Plantation
- Palm Plantation
- Beverage material crop
- Plantation (Tea, Coffee and Cocoa)
- Peppercorn Plantation
- Clove Plantation
- Essential Oil crop Plantation
- Medicinal/Pharmaceutical crop Plantation
- Other spices crop plantation
- Rubber and other producing latex plantation
- Other crop plantation that is not classified in other location
4) Seeding plantation business for a land area that is less than 25 Ha:
- Jatropha Curcas Plantation
- Other sweetening plants and sugar cane
- Tobacco Plant
- Textile Raw Material Plant
- Cotton Plant
- Other Plants that are not classified in other location
- Cashew Plant
- Coconut Plant
- Palm Plant
- Plants for beverage material (Tea, Coffee and Cocoa)
- Peppercorn Plant
- Clove Plant
- Essential Oil Plant
- Medicinal/pharmaceutical plant
- Other spice plants
- Rubber and Other Latex Producing Plants
5) Pig Breeding and Farming in a quantity less than or equal to 125
6) Free-range chicken and its cross Breeding and Farming
7) Plantation Processing Product Business Industry below certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment:
Dry Clove Flower Industry - Crude Oil Industry (edible oil) from Vegetable and Animal - Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry - Coconut Oil Industry - Palm Oil Industry - Fiber and Seed Cotton Industry - Peeling, Cleaning and Sorting Coffee Industry
- Peeling, Cleaning and Drying Cocoa Industry - Peeling and Cleaning Seed other than Coffee and Cacao Industry - Cashew to be dry seed cashew and Cashew Nut Shell Liquid (CNSL) Industry - Peppercorn to be dry white pepper and dry black pepper industry - Sugar, sugar cane and sugar cane residue Industry - Black Tea / Green Tea Industry - Dry Tobacco Leaves Industry - Rubber to be sheet, thick latex, crumb rubber Industry - Raw Castor Oil Industry
8) Pig Breeding and Farming (for quantity of more than 125)
9) The use of Genetic Agriculture Resources
10) The use of GMO Products (Genetic Engineering)
11) Main crop cultivation (corn, soy, peanuts, green beans, rice, cassava, sweet potato), in an area of more than 25 Ha
12) Main crop plant culturing medium/nursery business (corn, soy, peanuts, green beans, rice, cassava, sweet potato
13) Other crop culturing medium/nursery businesses
14) Other plant cultivation for an area of more than 25 Ha
15) Plantation business for an area of 25 Ha or over, up until a certain area according to Regulation of Minister of Agriculture Number 26 of 2007, without a processing unit:
- Jatropha curcas plantation
- Other Sweetening Plant and Sugar Cane Plantation
- Tobacco Plantation
- Raw Material Textile Crop Plantation
- Cotton Plantation
- Other Crop Plantations that are not classified in Other Locations
- Cashew Plantation
- Coconut Plantation
- Palm Plantation
- Crop Plantation For Beverage Material (Tea, Coffee and Cacao)
- Peppercorn Plantation
- Clove Plantation
- Essential Oil Crop Plantation
- Medicinal/Pharmaceutical Crop Plantation
- Other Spice Crop Plantations
- Rubber and Other Latex Producing Plantation
16) Plantation business for an area of 25 Ha or over, until a certain area according to Regulation of Minister of Agriculture Number 26 of 2007, without processing unit:
- Jatropha curcas plantation - Other Sweetening Plants and Sugar Cane Plantations - Tobacco Plantation - Raw Material Textile Crop Plantation - Cotton Plantation - Other Crop Plantations that are not classified in Other Locations - Cashew Plantation - Coconut Plantation - Palm Plantation - Crop Plantation For Beverage Material (Tea, Coffee and Cacao - Peppercorn Plantation - Clove Plantation - Essential Oil Crop Plantation - Medicinal/Pharmaceutical Crop Plantation - Other Spice Crop Plantations - Rubber and Other Latex Producing Plantations
17) Product processing plantation business industry (similar capacity or exceeding a certain capacity, according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment):
- Crude Oil Industry (edible oil) from Vegetable and Animal
- Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry
- Coconut Oil Industry - Palm Oil Industry - Peeling, Cleaning and Sorting
- Coffee Industry - Peeling, Cleaning and Drying
- Cocoa Industry
- Peeling and Cleaning Seeds other than Coffee and Cacao Industry
- Sugar, sugar cane and sugar cane residue Industry
- Black Tea / Green Tea Industry - Dry Tobacco Leaves Industry - Raw Castor Oil Industry - Fiber and Seed Cotton Industry
- Rubber to be sheet, thick latex, crumb rubber Industry
- Cashew to be dry seed cashew and Cashew Nut Shell Liquid (CNSL) Industry
- Peppercorn to be dry white pepper and dry black pepper industry
- Dry Clove Flower Industry
18) Plantation business for 25 Ha area of land or more, integrated to the processing unit by the same capacity or exceeding a certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment):
- Cashew Plantation and dry cashew seed industry and Cashew Nut Shell Liquid (CNSL) Peppercorn plantation and dry white peppercorn and dry black peppercorn industry
- Jatropha Plantation and Jatropha curcas oil industry Sugar Cane Plantation, Sugar Industry, Sugar Cane, and Sugar Cane Residue.
- Tobacco Plantation and Dry Tobacco Leaves Industry Cotton Plantation and Cotton Fiber and Seed Industry
- Coconut Plantation and Coconut Oil Industry Coconut Plantation and Copra, Fiber, Coconut Charcoal, Dust, Nata De Coco Industry
- Palm Plantation and Palm Oil Industry (CPO) Cacao Plantation and Peeling Cleaning and Drying Cacao Industry
- Tea Plantation and Black/Green Tea Industry Clove Plantation and Dry Flower Clove Industry
- Essential Oil Crop Plantation and Essential Oil Industry Essential Oil Crop Plantation and Essential Oil Industry
- Rubber Plantation and Sheet, Thick Latex Industry and Crumb Rubber Industry
- Seeds Plantation other than Coffee and Cacao and Seeds other than Coffee and Cacao Peeling and Cleaning Industry
 
2. Forestry Sector
1) Capturing and Propagating Plant and Wildlife (TSL) from Natural Habitat except reptiles (snake, lizard, turtle, soft shell turtle and crocodile)
2) Other Forest Plantation Businesses (Sugar Palm, Pecan, Tamarind Seed, Charcoal Raw Material, Cinnamon etc)
3) Forest Processing Prime Product Industry other Log (Pine Sap, Bamboo)
4) Swallow’sNest businessin Nature
5) Saw Mill Industry (production capacity up to 2000M3/year)
6) Rattan Processing Prime Industry
7) Mangrove Semi Finished Goods
- Art carving industry except furniture
- Kitchen appliances industry
- Goods industry that is not classified in other location
8) Rattan business
9) Pine Sap business
10) Bamboobusiness
11) Resinbusiness
12) Eaglewoodbusiness
13) Shellacbusiness
14) Alternative crop plant business (sago)
15) Bee Business
16) Latexbusiness
17) Silk wormcocoon/chrysalis business (natural silk)
18) Hunting business in Hunting Parks and Hunting Blocks
19) Raising Wildlife and Plants
20) Coral Raising/Cultivating
21) Nature Tourism Business such as Facility, Activity and Ecotourism Business in Forest Areas:
Water Tourism, Nature Adventure Tourism, Cave Tourism, Other interest tourism
22) Capturing and Propagating Plants and Wildlife (TSL) from Natural Habitats except reptiles (snake, lizard, turtle, soft shell turtle and crocodile)
23) Development of Technology use on plant and wildlife genetics
24) Usage (taking) and distributing coral/decorative coral from nature for aquariums *)
25) Usage (taking) and distributing decorative coral/atoll of recent dead coral from transplantation/propagation results
26) Saw mill industry with production capacity above 2000M3/year
27) Veneer industry
28) Ply wood industry
29) Laminated veneer lumber (LVL) industry
30) Wood chip industry
31) Wood pellet industry
32) Veneer industry
33) Supplying and distributing forest plant’s seed and seeding (forest plant’s seed and seeding export and import)
34) Water environment use service business in forest area

Note:
What is meant by Micro, Small, Medium Enterprises and Cooperatives (UMKMK) in this Presidential Regulation is individual or business entities that fulfill the criteria as meant in Law Number 20 of 2008 on Micro, Small, Medium Enterprises and
Cooperatives and Law Number 25 of 1992 on Cooperative

 

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