Foreign investors in Indonesia must obtain sector-specific approvals and licenses, such as environmental approvals and product standards, based on the KBLI classification and sector regulations to ensure compliance and successful operation.
Understanding Sector-specific Approvals for Foreign Investment in Indonesia
Foreign investors interested in establishing a company in Indonesia must navigate a regulatory environment that requires sector-specific approvals based on the Indonesian Standard Industrial Classification (KBLI) 2025. These approvals are determined by the company’s planned activities, assessed risk levels, and additional sector regulations. To successfully operate in Indonesia, it is crucial to obtain all necessary permissions specific to your business.
Additional Licensing and Approvals Required
Depending on the nature of your business activities, additional licenses and certifications may be necessary. This can include supporting business licenses, certificates, product approvals, and authorizations from relevant ministries. Ensure compliance with regulations across various sectors like industry, health, food and drugs, tourism, transportation, and agriculture through the Online Single Submission (OSS) platform to avoid legal challenges and facilitate smooth operations.
Compliance with Manufacturing and Product Standards
Manufacturing in Indonesia entails meeting specific requirements related to product type, production processes, and operational facilities. Environmental approvals, technical standards, and product conformity may be mandatory. Some products require registration, certification, or approval prior to manufacture, importation, distribution, or sale, emphasizing safety and quality within the market. It is essential for businesses, especially in health-related sectors, to complete necessary registrations for premises and goods before commencing operations or sales.
Source : Which Sector-Specific Licenses Do Foreign Investors Need in Indonesia?