Why global investors need more than licenses. They need a license to lead.
Big opportunity?
Indonesia remains one of ASEAN’s most attractive investment destinations, with
realized investment exceeding IDR 900 trillion (USD 53.34 billion) in 2025.
The government targets IDR 3,414.82 trillion in annual investment by 2029 to support 8%
economic growth.
What attracts investors?
BKPM survey:
- 68,3%: domestic market growth
- 30%: market proximity
- Others: regulation, skilled labor, natural resources, infrastructure, cost, clusters, ecosystem.
Market is the magnet. Regulation is not (yet) the differentiator.
“Market is the magnet. Regulation is not (yet) the differentiator”
Where complexity happens?
Key friction points for foreign investors:
- Multi-layered licensing (central, provincial, regency)
- Different interpretations between OSS RBA and local authorities
- Incomplete spatial plans (RDTR) and KKPR delays
- Uneven AMDAL/UKL-UPL capacity and timelines
Result: shifting timelines, higher costs, and uncertainty in project location and execution.
Sector highlights
High-potential sectors for 2026–2029:
- EV, batteries, downstream mining and base metals
- Renewable energy & carbon solutions
- Digital economy & data centers
- Healthcare & medical devices
- Agriculture, food processing & climate tech
- Manufacturing, logistics, and industrial services
All share one thing in common: they sit in highly regulated, technically complex spaces.
License to Operate vs License to Lead: Regulatory compliance gives you a license to operate.
Regulatory compliance gives you a license to operate, but to succeed in Indonesia, global companies also need:
- Social legitimacy with local communities
- Credible narratives that align global standards with local realities
- Stakeholder trust across government, regulators, and society
That’s the license to lead.
#LiaAlizia