Which Sector-Specific Licenses Do Foreign Investors Need in Indonesia?

Foreign investors establishing a business in Indonesia must secure sector-specific licenses, guided by the Indonesian Standard Industrial Classification (KBLI) 2025. These approvals are contingent upon the company's designated activities, risk evaluation, and sector-specific regulations. The Online Single Submission (OSS) platform provides a list of required licenses for various sectors, including industry, health, food and drugs, tourism, transportation, and agriculture.

Business compliance across these categories is essential to ensure smooth operations and legal adherence. Manufacturing in Indonesia mandates environmental approvals and adherence to product standards, with certain goods requiring registration or certification before manufacturing, importation, distribution, or sale. Health-related businesses, such as pharmaceuticals and medical devices, must obtain separate registrations for their operations and products.

In the financial sector, licenses are managed by the Financial Services Authority (OJK), regulating banking, insurance, and capital markets. The mining sector requires licenses from the Ministry of Energy and Mineral Resources, covering exploration to production. Telecommunications firms need permits from the Ministry of Communication and Information Technology.

Agricultural investors operate under the Ministry of Agriculture's approval process. The oil and gas sectors in Indonesia are heavily regulated, requiring coordination with SKK Migas, the government's regulatory body. Manufacturing firms must comply with industry-specific permits, often managed by the Ministry of Industry. Healthcare, pharmaceuticals, and food sectors require approvals from the National Agency of Drug and Food Control.

To navigate this complex licensing environment, foreign investors should seek local partnerships or legal counsel to ensure compliance and mitigate risks.