The newly released Lexology Panoramic: Foreign Investment Review 2026 - Indonesia chapter features contributions from our Partners, Nathaniel Mangunsong and Avinash A. Panjabi along with associates, Muhammad Aditya Wijaya, Eugenia Rachel Wiyarta and Jorryn Alexander Rotty.

The chapter provides an overview of Indonesia’s foreign investment legal framework, including key laws, policies, and regulatory authorities governing investment activities. It highlights the principles underpinning Indonesia’s investment regime, such as equal treatment between domestic and foreign investors, while outlining sectoral restrictions, capital requirements, and the risk-based licensing system administered by the Indonesian Investment Coordinating Board (BKPM).

It also examines the regulatory landscape applicable to various investment structures, including incorporation of foreign investment companies (PMA companies), joint ventures, and share or asset acquisitions. The chapter discusses merger control requirements, notification obligations, and the roles of key authorities such as BKPM, the Financial Services Authority (OJK), and the Indonesian Competition Supervisory Commission (KPPU).

Additionally, the chapter addresses important procedural and substantive aspects of foreign investment review, including approval processes, jurisdictional thresholds, national interest considerations, and post-closing review powers. It further explores enforcement mechanisms, sanctions for non-compliance, and recent cases illustrating the application of merger control rules in practice.

We conclude the chapter with an analysis of recent regulatory developments and emerging trends, particularly in relation to Indonesia’s energy transition strategy, expansion of risk-based business licensing, and efforts to enhance investment attractiveness in key sectors.

If you have a Lexology subscription, please visit here to access the full publication: https://www.lexology.com/panoramic/tool/workareas/report/foreign-investment-review/chapter/indonesia

Otherwise, please find below the PDF version for your reference. 

This press release is reproduced with permission from Law Business Research Ltd. This content was first published in Lexology Panoramic: Loans & Secured Financing 2026. For further information, please visit https://www.lexology.com/panoramic.