Revision of the Perpres on BUPM Aims to Open Up Greater Opportunities for Foreign Investors

The Ministry of Investment and Downstreaming Industry/Investment Coordinating Board (“BKPM”) is currently finalizing a draft regulation of the president on the amendment to Regulation of the President No. 10 of 2021 on Investment Business Fields (Badan Usaha Penanman Modal - “BUPM”), as amended by Regulation of the President No. 49 of 2021 (collectively referred to as “Perpres 10/2021”) .

Ichsan Zulkarnaen, Deputy for Investment Planning at BKPM, revealed that the draft draft regulation of the president is currently being refined with reference to the 2025 Indonesian Standard Industrial Classification (“KBLI”).

“So, we expect the Perpres on BUPM to be aligned with the new KBLI. The draft has been completed, but we are still making adjustments,” he told Hukumonline.

According to Ichsan, the Perpres on BUPM is intended to serve as the primary gateway for foreign investors entering Indonesia. Accordingly, the Government is seeking to make the new regulations more open and investor-friendly. Alignment with the 2025 KBLI is important in determining the requirements, obligations, and restrictions applicable to foreign investors in each business sector.

The proposed amendments are also intended to ensure that restrictions applicable to foreign parties do not become a factor that discourages or causes investors to hesitate to invest in Indonesia. The Government also seeks to promote technology transfer through foreign investment entering Indonesia.

“We must ensure that these restrictions do not discourage them from entering Indonesia or cause them to hesitate to do so,” he said.