What sector-specific licenses are required for foreign investors in Indonesia?

Foreign investors eyeing Indonesia must obtain specific sector approvals, licenses, and certifications, depending on the nature of their business activities, products, and risk levels. The requirements differ significantly across various industries, particularly healthcare, manufacturing, and regulated sectors.

To begin operations, an investor must identify the appropriate sector based on the Indonesian Standard Industrial Classification (KBLI) 2025. The sector classification determines the necessary permits and licenses, ensuring compliance with local regulations.

Depending on the business activity, foreign investors may need supporting licenses like the PB-UMKU, certificates, registrations, or product approvals issued by relevant ministries or regulators. The Online Single Submission (OSS) system offers a comprehensive list of PB-UMKU across various sectors, such as industry, health, food, tourism, transportation, communications, agriculture, and energy. This streamlined approach simplifies the licensing process for foreign investors.

Manufacturing enterprises must comply with sector-specific requirements, including environmental approvals, adherence to technical standards, and registration or certification of certain goods before production, importation, or sale. Similarly, healthcare and regulated industries, including pharmaceuticals and cosmetics, necessitate distinct approvals, registrations, or certifications to ensure safe and lawful operation.

In summary, foreign investors in Indonesia must navigate a complex web of sector-specific licenses and approvals. Thoroughly understanding and adhering to these requirements is crucial to successfully establish and operate a business in the country.