Government Incentives for Foreign Investors in Indonesia (2025 Update)

Indonesia, Southeast Asia’s largest economy, continues to attract foreign investors with a suite of incentives designed to foster economic growth and innovation. As of 2025, the Indonesian government has introduced and refined several programs to make the investment landscape more appealing. This article provides an in-depth look at the current incentives available to foreign investors, highlighting key opportunities across various sectors.​

1. Golden Visa Program: Long-Term Residency for Investors

Launched in 2024, Indonesia’s Golden Visa program offers long-term residency to foreign investors, aiming to boost economic development and attract high-quality investments.​

Key Features:

• Individual Investors:

  • 5-year visa: Establish a company in Indonesia with a minimum investment of $2.5 million.

  • 10-year visa: Establish a company with a minimum investment of $5 million.

  • Alternatively, invest $350,000 (5-year visa) or $700,000 (10-year visa) in government bonds, public company shares, or savings/deposits.​Global Trade Alert+4Reuters+4Jakarta Globe+4

• Corporate Investors:

  • 5-year visa: Invest $25 million in Indonesia.

  • 10-year visa: Invest $50 million.​investindonesia.co.id+5Reuters+5The Straits Times+5

Notably, for investments in the new capital city, Nusantara, the thresholds are significantly reduced:​Reuters+4ANTARA News+4Jakarta Globe+4

• 5-year visa: $5 million investment.

• 10-year visa: $10 million investment.​

Additionally, companies establishing branches or subsidiaries in Nusantara are exempt from turnover requirements at their parent companies .​ANTARA News+2Jakarta Globe+2investindonesia.co.id+2

Applications can be submitted online via the eVisa portal.​IMI Daily+4ANTARA News+4Jakarta Globe+4

2. Positive Investment List: Prioritized Sectors with Incentives

Indonesia’s Positive Investment List identifies sectors open to foreign investment, offering various incentives to encourage participation.​ASEAN Briefing

Priority Sectors Include:

• Renewable energy.

• Digital economy (e.g., data centers, hosting services).

• Pharmaceuticals.

• Automotive industry.

• Textiles and garments.​ASEAN Briefing+1Wikipedia+1

Incentives Offered:

• Tax Holidays: Up to 100% corporate income tax reduction for 5 to 20 years, depending on the investment amount.

• Tax Allowances: Reduction in taxable income by 30% of the total investment over six years.

• Loss Carry Forward: Tax losses can be carried forward for up to 10 years.

• Simplified Licensing: Streamlined business licensing procedures.​ASEAN Briefing

These incentives aim to attract investments that are labor-intensive, capital-intensive, export-oriented, or involve advanced technologies .​ASEAN Briefing

3. Danantara Sovereign Wealth Fund: Collaborative Investment Opportunities

Indonesia’s sovereign wealth fund, Danantara, established to attract foreign investment, has partnered with international entities to fund strategic projects.​Reuters+1investindonesia.co.id+1

Recent Developments:

• In April 2025, Danantara and the Qatar Investment Authority launched a $4 billion joint investment fund, with each contributing $2 billion.

• The fund focuses on investments in downstream industries, renewable energy, healthcare, and technology sectors .​Reuters

This collaboration underscores Indonesia’s commitment to sustainable development and industrial growth.​

4. Omnibus Law on Job Creation: Streamlining Business Operations

The Omnibus Law on Job Creation, enacted to improve the investment climate, introduces several reforms:​Wikipedia

• Corporate Tax Reduction: Gradual decrease of corporate income tax from 25% to 20% by 2025.

• Simplified Licensing: Centralized and streamlined business licensing processes.

• Labor Reforms: More flexible labor regulations to accommodate various business needs.​ASEAN Briefing

These changes aim to enhance Indonesia’s competitiveness and attract more foreign direct investment .​Wikipedia

5. Renewable Energy Incentives: Encouraging Sustainable Investments

To promote renewable energy projects, Indonesia has relaxed certain regulations:​Reuters

• Local Content Requirements: Eased for electricity projects financed by foreign investors, facilitating access to concessional loans from international development banks.

• Solar Power Projects: Permitted to use imported panels under specific conditions, such as ministerial approval and commitments to invest in local production facilities .​Reuters

These measures are part of Indonesia’s strategy to increase the share of renewables in its energy portfolio.​Reuters

Conclusion

Indonesia’s 2025 investment landscape offers a range of incentives for foreign investors across various sectors. From long-term residency options under the Golden Visa program to tax benefits and streamlined regulations, the country is positioning itself as a favorable destination for international business ventures.​

For personalized guidance on navigating Indonesia’s investment opportunities, consider partnering with local experts who can provide insights tailored to your business needs.​