New BKPM Regulation to Obtain Fiscal Incentives

The Ministry of Investment and Downstream/Investment Coordinating Board (“ BKPM ”) is issuing a regulation that requires investors to partner with Micro-, Small-, and Medium-scale Enterprises (“ MSME ”). The Head of Legal Bureau of BKPM, Andre Abaraham, explained that the partnership is intended for large companies that receive fiscal incentives, aimed at strengthening national downstream through collaboration with MSME.

“The harmonization process has been completed. It should be issued in the first week of September,” said Andre to Hukumonline.

The obligation for large companies that receive incentives to partner with MSMEs is stipulated in Regulation of the Minister of Investment/Head of BKPM No. 1 of 2022 on Procedures for the Implementation of Partnerships within the Investment Sector Between Large-Scale Enterprises and Micro-, Small-, and Medium-Scale Enterprises in Regions, as amended by Regulation of the Minister of Investment/Head of BKPM No. 3 of 2025 (collectively referred to as “ PerBKPM 1/2022 ”). Business actors may partner with MSMEs that are proposed by ministries and agencies, regional governments, or business associations. If the proposed MSMEs do not meet the required competencies,large-scale enterprisesmay recommend their own prospective MSME partners.