how to invest

How to Invest

New Investment or Expansion

Concerning the issuance of Government Regulation (GR) No. 24 of 2018 on Electronic Single Submission System (Online Single Submission/OSS), we herewith inform that all registration for new investment and business expansion is now done through One Stop Service Center website to serve investors who need information, assistance, and consultation.

How to use the OSS System

Representative Office

How to Establish a Foreign Representative Office

(Kantor Perwakilan Perusahaan Asing/KPPA)

​The required documents are mentioned on the Chairman of BKPM’s Regulation No. 6 of 2018 concerning the Guidelines on Investment Licensing and Facilities – which are as the followings:

  • Article of Association and/or Certificate of incorporation of your company which legalised by authorized institution in the designated country of origin;
  • For UK Company and to get documents legalised please follow this:
  • link;
  • Letter of Statement (LoS) from Head of KPPA in Indonesia which stated that Head of KPPA will live and only work as Head of KPPA in Indonesia without doing any other business activities in Indonesia, legalised by the Indonesian Embassy;
  • Letter of Appointment (LoA) & Letter of Intent (LoI) legalised by the Indonesian Embassy;
  • Indonesian Embassy legalisation documents (for UK Company) please follow this:
  • link;
  • Letter of Reference (LoR) from the Indonesian Embassy/Trade Attache or IIPC;
  • ID of Head of the KPPA in Indonesia (Copy of Passport);
  • Photos of Head of the KPPA in size 4×6 cm, 2 copies (coloured);
  • Power of Attorney, if needed.

To request the Letter of Reference from IIPC, please provide the following documents:

  • Official letter of request addressed to Director of IIPC London:
  • Indonesia Investment Promotion Centre (IIPC) London
  • Landmark Barbican 200 Aldersgate (South)
  • London, EC1A 4HD
  • United Kingdom
  • T: +44(0)20 3440 3830
  • D: +44 (0)20 3440 3831
  • Certificate of Incorporation issued by the relevant Government agency at the country of origin. For UK company issued by Companies House.
  • Artticle of Association legalised by the Notary Public or FCO
  • Company representative office license from BKPM (if it is for renewal)
Fiscal Incentives for Investment

Tax Allowance

(Government Regulation No.9/2016)

30% of investment value

Reduction of corporate net income tax for 6 years, 5% each year


  • Accelerated Depreciation & Amortization
  • Lower Tariff for Dividend Tax (up to 10%)
  • Longer period of Fiscal Loss Compensation (5-10 years)


business fileds eligible for tax allowance, expanded from 143 segments in the previous regulation

Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project  location (especially outside Java island).

Import Duty Facility

(MoF Regulation No. 176/PMK.011/2009 juncto No. 188/PMK.010/2015)

Free import duty

  • Machinery/equipment
  • Raw materials for production


  • 2 years import duty exemption or;
  • 4 years for companies using locally produced machines/equipment (min. 30%)

Given that the machines/equipment/materials:

  • Not produced in Indonesia
  • Have been produced in Indonesia, but have not met the requirement specification
  • Have been produced in Indonesia but the numbers are not enough

For any industries which produce goods; and for service industries, including:

  • Tourism and culture
  • Public transportation
  • Publich health services
  • Mining
  • Construction
  • Telecomunication
  • Port
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