# Which Sector-Specific Licenses Do Foreign Investors Need in Indonesia?

- Link: https://www.thailand-business-news.com/asean/328338-which-sector-specific-licenses-do-foreign-investors-need-in-indonesia
- Published: 2026-09-20T10:45:52+07:00
- Author: ASEAN Briefing

**Foreign investors in Indonesia need sector-specific approvals and licenses based
on the KBLI classification, risk level, and sector rules. Requirements include environmental
approvals, product standards, and ministry authorizations.**

## Sector-specific Approvals for Foreign Investors in Indonesia

Foreign investors aiming to establish a company in Indonesia must navigate a regulatory
landscape requiring sector-specific approvals, dictated by the Indonesian Standard
Industrial Classification (KBLI) 2025. These requirements are intricately linked
to the company’s designated activities, assessed risk levels, and additional sector-
specific regulations. Navigating these waters requires understanding the particular
demands of your business and ensuring all necessary permissions are obtained to 
commence operations.

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## Additional Licensing and Approvals Needed

Depending on your business activities, additional licenses and certification may
be necessary. These can include supporting business licenses (PB-UMKU), certificates,
product approvals, and authorizations from relevant ministries. The Online Single
Submission (OSS) platform lists available PB-UMKU across various sectors such as
industry, health, food and drugs, tourism, transportation, and agriculture, among
others. Businesses must ensure compliance is achieved across these categories to
facilitate smooth operation and avoid legal challenges.

## Manufacturing and Product Standards Compliance

Manufacturing in Indonesia has its own set of requirements, hinging on the type 
of products, production processes, and operational facilities involved. Environmental
approvals and adherence to technical or product standards may be mandated. Certain
goods necessitate registration, certification, or approval prior to manufacturing,
importation, distribution, or sale. Health-related businesses, like pharmaceuticals
and medical devices, often require separate registrations for their premises and
products before operations or sales can legally begin. This regulatory structure
ensures safety and quality standards within the market.

Which Licenses Do Foreign Investors Need for Specific Sectors in Indonesia?

Foreign investors looking to operate in Indonesia must navigate a range of sector-
specific licenses to ensure compliance with local regulations. Key sectors requiring
licenses include finance, mining, telecommunications, agriculture, and energy. For
the financial sector, licenses are governed by the Financial Services Authority (
OJK), which oversees banking, insurance, and capital markets. In the mining sector,
licenses are issued by the Ministry of Energy and Mineral Resources, covering activities
from exploration to production. Telecommunications firms must secure permits from
the Ministry of Communication and Information Technology, while agricultural investors
deal with the Ministry of Agriculture for necessary approvals.

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Energy, particularly the oil and gas sectors, is tightly regulated, necessitating
cooperation with SKK Migas, the government’s regulatory body. Additionally, foreign
entities in manufacturing need to comply with specific industry-related permits,
often coordinated by the Ministry of Industry. Healthcare, pharmaceuticals, and 
food sectors require approvals from the National Agency of Drug and Food Control.
Navigating this licensing landscape necessitates a firm understanding of Indonesian
laws and regulatory bodies, often benefiting from local partnerships or legal counsel
to streamline the process and mitigate risks.

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  |  This article was first published by _[ASEAN Briefing](https://www.aseanbriefing.com) _, which is produced by [Dezan Shira & Associates](https://www.dezshira.com/). The firm assists foreign investors throughout Asia from offices [across the world](https://www.dezshira.com/office), including in in [China](https://www.dezshira.com/office/china), [Hong Kong](https://www.dezshira.com/office/hong-kong.html), [Vietnam](https://www.dezshira.com/office/vietnam), [Singapore](https://www.dezshira.com/office/singapore.html), and [India](https://www.dezshira.com/office/india) . Readers may write to [info@dezshira.com](https://www.thailand-business-news.com/asean/info@dezshira.com) for more support. |

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