Draft Perpres on Business Fields for Capital Investment

The government is still in the process of finalizing the Draft Regulation of the President (“RPerpres”) on Business Fields for Capital Investment (Bidang Usaha Penanaman Modal - “BUPM”). This regulation is projected to become a key instrument in attracting high-quality investment in order to achieve the target of 8% economic growth.

“The drafting process of this RPerpres is currently in the final stage of technical coordination to ensure alignment between the classification of business fields and the latest fiscal incentive schemes, including tax holidays and super tax deductions, as well as protections for Micro-, Small-, and Medium Scales Enterprises (Usaha Mikro, Kecil, dan Menengah - “UMKM”),” said Andre Abraham, Head of the Legal Bureau of the Ministry of Investment and Downstreaming/Investment Coordinating Board.

Several key provisions regulated under this RPrepres include the recalibration of priority business fields, with an emphasis on the green industry and the electric vehicle ecosystem. This also covers adjustments to the 2025 Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia - “KBLI”) codes, making them more adaptive to digital business models and Artificial Intelligence (“AI”).