Why Foreign Investors Face Legal Challenges in Indonesia – and the Smart Way to Overcome Them
Indonesia is one of the most promising investment destinations in Southeast Asia, offering dynamic growth in sectors like manufacturing, renewable energy, digital economy, and infrastructure. However, many foreign investors still find it difficult to navigate the country’s legal and regulatory systems.
Here are four common legal obstacles faced by international investors:
1. Complex Licensing and Regulatory Procedures
Although Indonesia introduced the OSS-RBA system (Online Single Submission – Risk-Based Approach), understanding business classifications (KBLI), sector-specific requirements, and regional licensing nuances can be overwhelming without local insight.
2. Limited Access to Reliable Legal Information
Foreign investors often struggle to find accurate and up-to-date legal guidance in English, especially regarding changing regulations and sector-specific compliance.
3. Foreign Ownership Restrictions
Indonesia imposes foreign equity limits depending on the type of business and sector. Not understanding these limitations could lead to investment denials or future legal complications.
4. Expensive, Slow, and Language-Bound Legal Services
Traditional legal support can be costly, time-consuming, and difficult to access without Bahasa Indonesia proficiency or local contacts.
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MyLegal is to provide professional services for environmental and industrial permitting, mining, and legal affairs in Indonesia. The company specializes in helping clients obtain permits and comply with regulations related to environmental protection, mining operations, and other industrial activities.
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