1 PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER: 36 OF 2010 ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT WITH THE GRACE OF GOD THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering: a. that, to implement Article 12 paragraph (4) and Article 13 paragraph (1) of Law Number 25 of 2007 on Investment, Presidential Regulation Number 77 of 2007 on List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment as amended by Presidential Regulation Number 111 of 2007; b. that, in order to increase investment activities in Indonesia and for the purpose of implementing Indonesia’s commitment with respect to the Association of Southeast Asian Nations/ASEAN Economic Community (AEC), it is necessary to rework the provisions on the list of business fields closed to investment and business fields open, with conditions, to investment; c. that, in connection with the matters as referred to in paragraphs a and b above, it is necessary to stipulate a Presidential Regulation on the List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment. In view of: 1. Article 4 paragraph (1) of the 1945 Constitution of the Republic of Indonesia;
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1
PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER: 36 OF 2010
ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND
BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT
WITH THE GRACE OF GOD THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering: a. that, to implement Article 12 paragraph (4) and Article 13
paragraph (1) of Law Number 25 of 2007 on Investment,
Presidential Regulation Number 77 of 2007 on List of Business
Fields Closed to Investment and Business Fields Open, with
Conditions, to Investment as amended by Presidential
Regulation Number 111 of 2007;
b. that, in order to increase investment activities in Indonesia and
for the purpose of implementing Indonesia’s commitment with
respect to the Association of Southeast Asian Nations/ASEAN
Economic Community (AEC), it is necessary to rework the
provisions on the list of business fields closed to investment and
business fields open, with conditions, to investment;
c. that, in connection with the matters as referred to in paragraphs
a and b above, it is necessary to stipulate a Presidential
Regulation on the List of Business Fields Closed to Investment
and Business Fields Open, with Conditions, to Investment.
In view of: 1. Article 4 paragraph (1) of the 1945 Constitution of the Republic
of Indonesia;
2
2. Law Number 25 of 1992 on Cooperatives (State Gazette of the
Republic of Indonesia of 1992 Number 116, Supplement to the
State Gazette of the Republic of Indonesia Number 3502);
3. Law Number 32 of 2004 on Regional Government (State
Gazette of the Republic of Indonesia of 2004 Number 125,
Supplement to the State Gazette of the Republic of Indonesia
Number 4437) as amended most recently by Law Number 12
of 2008 on Second Amendment to the Law Number 32 of 2004
on Regional Government (State Gazette of the Republic of
Indonesia of 2008 Number 59, Supplement to the State
Gazette of the Republic of Indonesia Number 4844);
4. Law Number 25 of 2007 on Investment (State Gazette of the
Republic of Indonesia of 2007 Number 67, Supplement to the
State Gazette of the Republic of Indonesia Number 4724);
5. Law Number 40 of 2007 on Limited Liability Company (State
Gazette of the Republic of Indonesia of 2007 Number 106,
Supplement to the State Gazette of the Republic of Indonesia
Number 4756);
6. Law Number 20 of 2008 on Micro, Small and Medium
Enterprises (State Gazette of the Republic of Indonesia of
2008 Number 93, Supplement to the State Gazette of the
Republic of Indonesia Number 4866);
7. Government Regulation Number 44 of 2007 on Partnership
(State Gazette of the Republic of Indonesia of 1997 Number
91, Supplement to the State Gazette of the Republic of
Indonesia Number 3718)
8. Presidential Regulation Number 76 of 2007 on Criteria and
Requirements for Setting Up Business Fields Closed and
Business Fields Open, with Conditions, to Investment;
9. Presidential Regulation Number 27 of 2009 on One Stop
Services of Investment;
3
DECIDES:
To stipulate: PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT
Article 1
(1) Closed business fields are certain business fields that are prohibited
from conducting any investment activities.
(2) The list of closed business fields as referred to in paragraph (1) are as
set out in Appendix I of this Presidential Regulation.
Article 2 (1) Business fields open, with conditions, are certain business fields that
may conduct investment activities under certain requirements, that is,
licensed businesses reserved for Micro, Small and Medium Enterprises
and Cooperatives, licensed businesses requiring establishment under a
partnership, licensed businesses requiring certain capital ownership,
licensed businesses requiring a certain location, and licensed
businesses requiring special permits.
(2) The list of business fields open, with conditions, as referred to in
paragraph (1) shall be as set out in Appendix II of this Presidential
Regulation.
Article 3 (1) Investment in business fields open, with conditions, as referred to in
Article 2 must meet requirements of location as provided herein and
meet regulations applicable in spatial and environment sectors.
(2) In the case of locations of business for a investment license as referred
to in paragraph (1) it has been determined that the investor is willing to
extend his business by engaging in the same business activities outside
the location determined in the investment license, then the investment
shall meet the requirements of location as referred to in paragraph (1).
4
(3) In order to meet the requirements of location as referred to in paragraph
(2), investors are not obliged to establish new business entities or obtain
new business licenses, except where otherwise stipulated by Law,
Article 4 Provisions as referred to in Articles 1 and 2 shall not be applicable for non-
direct investment, or whose portfolio transaction is made through a domestic
capital market. Article 5
In the event that a change occurs to the capital ownership resulting from a
merger, acquisition, or amalgamation of a company engaged in the same
business field, the following requirements shall apply:
a. A limitation of capital ownership from a foreign investment in the
merging company shall be as set out in the approval letter of the company.
b. A limitation of capital ownership from a foreign investment in the
acquiring company shall be as set out in the approval letter of the
company.
c. A limitation of capital ownership from a foreign investment in a new
company resulting from an amalgamation shall be in compliance with the
provisions applied when the new company was formed from that
amalgamation.
Article 6 (1) In the event that a foreign investor expands his business activities in the
same business sector and the expansion of his business activities
requires additional capital through a rights issue and domestic investors
are unable to participate in the said additional capital, then requirements
of right issues will be applied for domestic investment, in accordance
with the laws and regulations in the sector of a limited liability company.
(2) In the event additional capital, as referred to in paragraph (1) results in
total ownership of foreign capital to exceed the maximum limit set out in
the Approval Letter, then within a period of two (2) years, the exceeding
5
total ownership of foreign capital investment may be adjusted from the
minimum limit included in the approval letter, by means of:
a. the foreign investor sells the excess of shares in good will to
domestic investor;
b. the foreign investor sells the excess of shares through a general
tender conducted by a company whose shares are owned by
the foreign investor in a domestic capital market; or
c. the company, as referred to in paragraph (2) sub-paragraph b,
purchases the excess shares owned by the foreign investor and
treats the shares as treasury
stocks, subject to Article 37 of Law Number 40 of 2007 on Limited
Liability Company.
Article 7 Provisions of this Presidential Regulation shall not pressure the obligation of an
investor to comply with terms and conditions in conducting business activities
issued by:
a. Ministry/Non-Ministry Governmental Institutions which are technically
authorized as to the scope of the investment; and
b. Regional Regulation
Article 8 Provisions as referred to in Articles 1 and 2 herein shall not be applicable for an
investment approved in certain sectors prior to the stipulation of this
Presidential Regulation as included in the Approval Letter, except if such
provisions are more beneficial to the referred investment.
Article 9
When this Presidential Regulation comes into effect, any laws and regulations
subordinate to this Presidential Regulation shall remain applicable to the extent
that they are not contradictory to this Presidential Regulation.
Article 10
When this Presidential Regulation comes into effect, implementing regulation of
Presidential Regulation Number 77 of 2007 on List of Business Fields Closed to
6
Investment and Business Fields Open, with Conditions, to Investment as
amended by Presidential Regulation Number 111 of 2007, shall remain
applicable to the extent that it is not contradictory and has not been regulated
with a new implementing regulation based on this Presidential Regulation:
Article 11
With the enforcement of this Presidential Regulation, Presidential Regulation
Number 77 of 2007 on List of Business Fields Closed to Investment and
Business Fields Open, with Conditions, to Investment as amended by
Presidential Regulation Number 111 of 2007 shall be revoked and declared as
no longer applicable.
Article 12
This Regulation shall come into force as of the stipulation date.
Stipulated in Jakarta
On the date of 25 May 2010
PRESIDENT OF THE REPUBLIC OF INDONESIA
signed
DR. H. SUSILO BAMBANG YUDHOYONO
Original Copy
Deputy Cabinet Secretary
Legal Division
Signed by
Dr. M. Imam Santoso
7
APPENDIX LIST
REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA
NUMBER 36 YEAR 2010
No. APPENDIX TITLE PAGE
1. APPENDIX I List of Business Fields Closed to Investment 1
2. APPENDIX II List of Business Fields Open, with Conditions, to Investment 4
1. Agriculture Sector 4
2. Forestry Sector 19
3. Maritime and Fishery Sector 24
4. Energy and Mineral Resources Sector 28
5. Industrial Sector 31
6. Defense Sector 44
7. Public Works Sector 46
8. Trade Sector 60
9. Culture and Tourism Sector 66
10. Transportation Sector 75
11. Communication and Informatics Sector 83
12. Financial Sector 88
8
13. Banking Sector
14. Manpower and Transmigration Sector
90
92
15. Education Sector 95
16. Health Sector 98
17. Security Sector 104
9
APPENDIX I
REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA
NUMBER : 36 OF 2010
DATE : 25 MAY 2010
LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT
NO. SECTOR BUSINESS FIELDS KBLI
1. Agriculture Marijuana Cultivation 01289
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.
01701
03119
03119
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:
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 20. Coral Raising/Cultivating 01702 - - √ - - - - - - - Maximum
49% - -
21. Nature Tourism Business such as
Facility, Activity and Ecotourism
Business in Forest Areas:
- Water Tourism
- Nature Adventure Tourism
- Cave Tourism
- Other interests tourism
93241
to
93243
93249
93223
93222
93229
- - √ - - - - - - - Maximum
51% - -
22. Capturing and Propagating Plants
and Wildlife (TSL) from Natural
Habitats except reptiles (snake,
lizard, turtle, soft shell turtle and
crocodile)
01701 - - - - √ - - - - - - Recommendation
from the Minister of
Forestry
23. Development of Technology use
on plant and wildlife genetics
02409 - - - - √ - - - - - - Statement on
partnership with
accredited
institution/ national
institution in
research and
28
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e
2. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then
provisions as referred to in Appendix II is only applicable to the business fields stated in the column of business fields.
33
3. 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 Cooperatives.
4. In the event that a business field covered in Indonesia’s commitment to ‘ASEAN Economic Community’ is not stated in Appendix
II column j of this Presidential Regulation but stated in other columns, then the capital originating from ASEAN may be invested
based on the requirements as referred to in the columns.
5. *) = Stated also in forestry sector
34
4. Energy and Mineral Resources Sector
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 1. Power Plant (< 1 MW) 35101 √ - - - - - - - - - - - -
2. Small Scale Power Plant (1-10
MW)
35101 - √ - - - - - - - - - - -
3. Operation and Maintenance
Service of Geothermal Facility
06202 - - √ - - - - - - - - Maximum
90% -
4. Geothermal Drilling Service 06202 - - √ - - - - - - - - Maximum
95% -
5. Geothermal Power Plant 06202 - - √ - - - - - - - - Maximum
95% -
6. Oil and Gas Drilling Service
Offshore Outside of Eastern
Indonesia Territory
09100 - - √ - - - - - - - - Maximum
95% -
7. Oil and Gas Drilling Service on
Land
09100 - - √ - - - - - - - - Maximum
95% -
8. Operation and Maintenance
Service of Oil and Gas Facility
09100 - - √ - - - - - - - - Maximum
95% -
9. Power Plant Maintenance and
Operation Installation Service
35104 - - √ - - - - - - - - Maximum
95% -
10. Power Plant (> 10 MW) 35101 - - √ - - - - - - - - Maximum
95% -
11. Nuclear Power Plant 35101 - - √ - - - - - - - - Maximum
95% -
a. Reserved for
Micro, Small,
Medium
Enterprises and
Cooperatives
b. Partnership c. Foreign Capital
Ownership
d. Certain location
e. Special license f. 100% local
capital
g. Foreign Capital
and Location
ownership
h. Special license
and foreign
capital
ownership i. 100% local
capital and
special license j. Foreign capital
ownership
35
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 12. Power Plant Transmission 35102 - - √ - - - - - - - - Maximum
95% -
13. Electricity Distribution 35103 - - √ - - - - - - - - Maximum
95% -
14. Constructing and Installing
Electricity Service
43211 - - √ - - - - - - - - Maximum
95% -
15. Engineering Procurement
Construction (EPC) Service
71100 - - √ - - - - - - - - Maximum
95% -
16. Electricity Consultation Service 71100 - - √ - - - - - - - - Maximum
95% -
17. Technology Development of
Electricity Supplied Equipment
72102 - - √ - - - - - - - - Maximum
95% -
18. Radio Active Mineral Mining 07210 - - - - √ - - - - - - - Recommendation
from BATAM
requirement
and/or location
for capital
investment from
ASEAN
countries
Recommendation
from BATAN
Note:
1. √ = Following the column requirement
2. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then
provisions as referred to in Appendix II is only applicable to the business fields stated in the column of business fields.
3. 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.
36
4. In the event that a business field covered in Indonesia’s commitment to ‘ASEAN Economic Community’ is not stated in Appendix
II column j of this Presidential Regulation but stated in other columns, then the capital originating from ASEAN may be invested
based on the requirements as referred to in the columns.
37
5. Industrial Sector
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 1. Salting/drying fish and other water
biota industry and smoked fish
industry
10211
10214
√ - - - - - - - - - - - -
2. Processed Food from seeds and
roots, sago, Gnetum gnemon nut
and copra industry
10391
10392
10792
10793
10794
√ - - - - - - - - - - - -
3. Roots Peeling and Cleaning
Industry
10616 √ - - - - - - - - - - - -
4. Palm Sugar 10722 √ - - - - - - - - - - - -
5. Thread coloring from natural and
artificial fiber to be
patterned/dipped/tied thread,
performed by hand work tools
13122 √ - - - - - - - - - - - -
6. Cloth printing industry especially
Batik and traditional patterns
13133 √ - - - - - - - - - - - -
7. Hand painted batik industry 13134 √ - - - - - - - - - - - -
8. Knitted cloth industry especially
Lace
13911 √ - - - - - - - - - - - -
a. Reserved for
Micro, Small,
Medium
Enterprises and
Cooperatives
b. Partnership
c. Foreign Capital
Ownership
d. Certain location
e. Special license
f. 100% local
capital
g. Foreign Capital
and Location
ownership
h. Special license
and foreign
capital
ownership
i. 100% local
capital and
special license
38
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 9. Handy craft industry that carries
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 24. Construction material made from
clay industry, goods made from
lime industry and goods made
from cement industry:
- Brick and Clay/Ceramic
Industry
- Other goods made of
clay/ceramic industry,
- Lime Industry,
- Goods made from cement
industry,
- Goods made from lime industry,
- Other goods made from Cement
and Lime industry
23921
23939
23942
23951
23952
23959
- √ - - - - - - - - - - -
25. Nail, nuts and bolts industry,
Component and spare parts to start
up motor industry, pump and
compressor industry, components
and two and three wheels vehicles
accessories industry, bike and
becak accessories industry
25952
28113
28120
30912
30922
- √ - - - - - - - - - - -
42
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 26. Agricultural machinery industry
using medium technology such as
rice peeler, corn peeler and hand
tractor
28210 - √ - - - - - - - - - - -
27. Maritime tourism, wooden ship
and fish catching industry
including its tools and equipment
30111
30113
- √ - - - - - - - - - - -
28. Silver jewelry industry:
- Made of gold, valuable goods
jewelry for personal use
industry
- Made of gold, valuable jewelry
goods not for personal use
industry
32112
32113
- √ - - - - - - - - - - -
29. Other hand craft industries
- Jewelry goods not for personal
use and not made of gold
industry
- Gem stone industry
- Handy craft industry that is not
classified in other locations
32120
32111
32903
- √ - - - - - - - - - - -
43
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e
- Other processing industries that are
not classified in other locations 32909
30. Non metal recycle goods 38302 - √ - - - - - - - - -
31. Car maintenance and repair 45201 - - √ - - - - - - - Maximum
49% - -
- 32. Cigarette industry:
- Clove cigarette industry
- Regular cigarette industry
- Other cigarette industries
12011
12012
12019
- - - - √ - - - - - -
Required to obtain
recommendation
from the Minister
of Industry for:
1) Cigarette
company having
industrial
business license
that is
expanding; or 2) Small and
medium scale
cigarette
industry that
partners with
large scale
cigarette
industry that has
industrial
business license
for similar
business sector.
Formatted: Font: 11 pt
Formatted: Font: 11,5 pt
44
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 33. Pulp industry (from wood) 17011 - - - - √ - - - - - - Raw material is
from Industrial
Forest Plant (HTI)
or from imported
Chip if the domestic
raw material is
insufficient
34. Valuable paper industry such as
Bank Note Paper, Cheque Paper,
Watermark Paper
17013 - - - - √ - - - - - - 1) Required to
obtain
operational
license from
BOTASU
PAL/BIN
2) Required to
obtain
recommendation
from the
Minister of
Industry
35. Special Printing Industry/Security
Documents such as stamp, stamp
duty, valuable paper, passport,
demography documents and
holograms
18112 - - - - √ - - - - - - 1) Required to
obtain
operational
license from
BOTASU
PAL/BIN
2) Required to
obtain
recommendation
Formatted: Font: 8,5 pt
45
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e
from the
Minister of
Industry
36. Money Printing Industry 18112 - - - - √ - - - - - - 1) Required to
obtain
operational
license from
BOTASU
PAL/BIN
2) Required to
obtain
recommendation
from the
Minister of
Industry
37. Cyclamate and saccharin industry 20119 - - - - √ - - - - - - According to the
requirement
stipulated by
BPOM and the
Minister of Trade
38. Special Ink Industry 20293 - - - - √ - - - - - - 1) Required to
obtain
operational
license from
BOTASU
PAL/BIN
2) Required to
obtain
46
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e
17. Other Hospital Service 86109 - - - - - √ - - - - - - -
ASEAN countries
96
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 18. Basic Health Service Facility 86109 - - - - - √ - - - - - - -
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 24. Dental Clinic 86203 - - - - - - √ - - - Maximal
67% Can be
conducted
all over
Indonesia
-
- - - - - - √ - - - Maximal 49%
Can be
conducted
all over
Indonesia
- 25. Nursing Service/CPC 93191)
86901
- - - - - - - - - √ Maximal 51%
Medan
and
Surabaya
-
26 Supporting Health Services
(Medical Equipment Rental)
86903 - - - - - - √ - - - Maximal 49%
Can be
conducted
all over
Indonesia
-
27. Supporting Health Service:
- Laboratory Clinic
- Medical Check Up Clinic
86903
86903
- - - - - - √ - - - Maximal 67%
Can be
conducted
all over
Indonesia
-
Note:
1. √ = Following the column requirement
2. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then
provisions as referred to in the Appendix II is only applicable to the business fields stated in the column of business fields.
98
3. 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.
4. In the event that a business field covered in Indonesia’s commitment to ‘ASEAN Economic Community’ is not stated in Appendix
II column j of this Presidential Regulation but stated in other columns, then the capital originating from ASEAN may be invested
based on the requirements as referred to in the columns.
99
17. Security Sector
No. Business fields KBLI Conditions Details of Conditions Remark a b c d e f g h i j c d e 1. Security Consulting Service 74909 - - - - - - - √ - - Maximal