Indonesia has tightened its investment playbook with the enactment of <a href="https://cptcorporate.com/six-new-business-sectors-open-for-licensing-under-indonesias-pp-28-2025/">Government Regulation No. 28/2025 (PP 28/2025)</a>, which establishes risk-based business licensing as the sole framework for companies entering the market. The regulation replaces earlier rules and centralizes approvals under the OSS digital platform, prohibiting local governments from imposing additional requirements. Officials say the move is designed to give foreign and domestic investors greater certainty, faster processing, and fewer bureaucratic hurdles.

The timing of the reform is strategic. Indonesia is seeking to attract global capital into priority industries—chiefly renewable energy and the digital economy—as part of its wider growth agenda. By aligning licensing with international standards and streamlining approvals, PP 28/2025 signals that the government is serious about creating a more predictable investment environment.

The new licensing framework sits at the heart of Indonesia’s push to align with global economic shifts. National targets for carbon reduction and sustainability are opening the door to large-scale solar, wind, and hydropower projects, while digitalization programs are fueling the rapid rise of e-commerce, fintech, and online services. For investors, these industries are not only buoyed by strong demand but also underpinned by reforms that promise to cut through red tape.

Green energy is emerging as one of Indonesia’s most promising growth areas. Incentives for renewable projects and international partnerships reflect the government’s determination to position the country as a hub for sustainable infrastructure. Under PP 28/2025, approvals for environmental permits are now subject to standardized criteria and fixed timelines, reducing uncertainty that has long been a barrier for foreign developers.

Indonesia already boasts more than 200 million internet users, making it one of the world’s largest digital markets. E-commerce platforms, fintech services, and digital wallets are expanding rapidly, driven by a young and tech-savvy population. Yet the sector’s scale brings regulatory scrutiny. The centralized standards under PP 28/2025 aim to harmonize rules that were once fragmented across regions, giving investors more clarity in areas such as data protection and financial licensing.

Beyond energy and technology, healthcare, tourism, and infrastructure remain vital pillars. Healthcare demand is rising with a growing middle class, while tourism is rebounding strongly as destinations outside Bali, such as Labuan Bajo and Lake Toba, attract international attention. Infrastructure modernization under the “Making Indonesia 4.0” initiative continues to support manufacturing and logistics. Each of these sectors now operates under the unified risk-based licensing system, which limits the risk of delays from overlapping local approvals.

While PP 28/2025 represents a significant step forward, its success will depend on execution. Transitioning to centralized licensing requires coordination across ministries and consistent enforcement at the local level. For international companies, the opportunity is considerable, but so is the need for careful compliance planning.

Specialist advisory firms such as CPT Corporate highlight that <a href="https://cptcorporate.com/company-registration-indonesia/">company registration</a>, permits, and sector-specific approvals remain essential steps. Missteps in navigating the new framework could still delay otherwise promising projects, even as the system promises faster outcomes.

Indonesia’s bet is clear: by coupling structural reforms with <a href="https://cptcorporate.com/indonesias-fastest-growing-sectors-for-foreign-investment-in-2025/">high-growth sectors</a>, it hopes to cement its place as Southeast Asia’s most dynamic investment destination. With PP 28/2025 at the center of this effort, the country is signaling to global markets that opportunity comes with a clearer path to entry—provided investors are ready to engage with a system that is still evolving in practice.

Indonesia has tightened its investment playbook with the enactment of <a href="https://cptcorporate.com/six-new-business-sectors-open-for-licensing-under-indonesias-pp-28-2025/">Government Regulation No. 28/2025 (PP 28/2025)</a>, which establishes risk-based business licensing as the sole framework for companies entering the market. The regulation replaces earlier rules and centralizes approvals under the OSS digital platform, prohibiting local governments from imposing additional requirements. Officials say the move is designed to give foreign and domestic investors greater certainty, faster processing, and fewer bureaucratic hurdles.The timing of the reform is strategic. Indonesia is seeking to attract global capital into priority industries—chiefly renewable energy and the digital economy—as part of its wider growth agenda. By aligning licensing with international standards and streamlining approvals, PP 28/2025 signals that the government is serious about creating a more predictable investment environment.The new licensing framework sits at the heart of Indonesia’s push to align with global economic shifts. National targets for carbon reduction and sustainability are opening the door to large-scale solar, wind, and hydropower projects, while digitalization programs are fueling the rapid rise of e-commerce, fintech, and online services. For investors, these industries are not only buoyed by strong demand but also underpinned by reforms that promise to cut through red tape.Green energy is emerging as one of Indonesia’s most promising growth areas. Incentives for renewable projects and international partnerships reflect the government’s determination to position the country as a hub for sustainable infrastructure. Under PP 28/2025, approvals for environmental permits are now subject to standardized criteria and fixed timelines, reducing uncertainty that has long been a barrier for foreign developers.Indonesia already boasts more than 200 million internet users, making it one of the world’s largest digital markets. E-commerce platforms, fintech services, and digital wallets are expanding rapidly, driven by a young and tech-savvy population. Yet the sector’s scale brings regulatory scrutiny. The centralized standards under PP 28/2025 aim to harmonize rules that were once fragmented across regions, giving investors more clarity in areas such as data protection and financial licensing.Beyond energy and technology, healthcare, tourism, and infrastructure remain vital pillars. Healthcare demand is rising with a growing middle class, while tourism is rebounding strongly as destinations outside Bali, such as Labuan Bajo and Lake Toba, attract international attention. Infrastructure modernization under the “Making Indonesia 4.0” initiative continues to support manufacturing and logistics. Each of these sectors now operates under the unified risk-based licensing system, which limits the risk of delays from overlapping local approvals.While PP 28/2025 represents a significant step forward, its success will depend on execution. Transitioning to centralized licensing requires coordination across ministries and consistent enforcement at the local level. For international companies, the opportunity is considerable, but so is the need for careful compliance planning.Specialist advisory firms such as CPT Corporate highlight that <a href="https://cptcorporate.com/company-registration-indonesia/">company registration</a>, permits, and sector-specific approvals remain essential steps. Missteps in navigating the new framework could still delay otherwise promising projects, even as the system promises faster outcomes.Indonesia’s bet is clear: by coupling structural reforms with <a href="https://cptcorporate.com/indonesias-fastest-growing-sectors-for-foreign-investment-in-2025/">high-growth sectors</a>, it hopes to cement its place as Southeast Asia’s most dynamic investment destination. With PP 28/2025 at the center of this effort, the country is signaling to global markets that opportunity comes with a clearer path to entry—provided investors are ready to engage with a system that is still evolving in practice.

HR / Recruitment

Legal / Patent / Intellectual Property

Foreign companies

Startups

Indonesia Bets on Green Energy and Digital Economy to Attract Foreign Capital

As Southeast Asia intensifies its competition to attract global talent and capital, Indonesia is raising the stakes with a revamped Golden Visa program. Introduced in 2023 and expanded in 2025, the policy now sits in direct comparison with the long-standing Investor KITAS, sparking debate among foreign entrepreneurs and High-Net-Worth Individuals (HNWIs) over which residency pathway offers the better deal. The outcome of this policy shift could shape Indonesia’s position in the region’s visa race, where neighboring countries such as Singapore and Malaysia have already established strong investor residency schemes.

The Indonesia <a href="https://cptcorporate.com/golden-visa-5-10-years-vs-investor-kitas-which-is-better-for-founders-and-hnwis-in-2025/">Golden Visa</a> offers residence permits valid for five or ten years, designed for investors, company founders, and wealth holders who meet the government’s minimum thresholds. Beyond its extended validity, the program aims to project Indonesia as a hub for innovation and high-value capital. Holders of the Golden Visa are entitled to live, work, and invest in the country without additional permits, while also being able to sponsor their dependents. For many foreign executives and HNWIs, the Golden Visa represents not only convenience but also a mark of prestige. It reflects Indonesia’s intent to align itself with other regional players such as Singapore’s EntrePass and Malaysia’s MM2H program, both of which are positioned as magnets for global talent.

By contrast, the Investor KITAS has long served as the standard route for foreigners establishing companies in Indonesia. The KITAS is valid for one or two years and grants investors the right to live in the country and manage their businesses without needing a separate work permit. Its biggest appeal has been accessibility. The program requires a smaller upfront investment compared to the Golden Visa, and it is directly tied to shareholding in a PT PMA, Indonesia’s foreign-owned company structure. For early-stage entrepreneurs or those testing the waters of the Indonesian market, the Investor KITAS has been a practical way to begin operations without committing too heavily. Yet the administrative cycle of renewals and extensions, often every one or two years, can become burdensome, particularly for HNWIs and executives who prioritize streamlined residency solutions.

The question of which program is better in 2025 depends largely on the profile of the applicant. For company founders, the Golden Visa provides stability during a crucial growth phase, allowing them to focus on scaling operations without worrying about visa disruptions. The Investor KITAS, meanwhile, remains useful for entrepreneurs at an earlier stage, who may prefer to keep commitments modest until their businesses have gained traction. For HNWIs, the Golden Visa is a clear winner. Its long validity, prestige, and freedom from frequent renewals align with the priorities of wealth holders who view time and convenience as paramount. The Investor KITAS, while functional, appears more restrictive and less aligned with the lifestyle expectations of this group.

More broadly, the expansion of the Golden Visa reflects a deliberate policy shift by Indonesia. Across Southeast Asia, governments are fine-tuning residency frameworks not only to attract investment but also to secure global talent in sectors such as technology, energy, and finance. By offering a decade-long residence permit, Indonesia has placed itself in closer competition with Singapore’s five-year passes and Malaysia’s long-stay programs. This shift suggests that Indonesia is no longer content to serve as a secondary market for capital inflows, but rather aims to position itself as a long-term hub where global wealth and innovation can thrive.

Despite these developments, both the Golden Visa and the Investor KITAS involve complex regulatory requirements. From structuring shareholdings and meeting capital thresholds to navigating documentation and timelines, foreign investors face a number of challenges. Missteps in compliance can lead to costly delays or even revocation of permits. This is where professional support becomes crucial. Firms such as CPT Corporate, which specialize in <a href="https://cptcorporate.com/immigration-service/">visa immigration services</a>, help entrepreneurs, investors, and HNWIs manage their applications efficiently while ensuring compliance with Indonesian authorities. Their expertise provides not only smoother processing but also strategic guidance for aligning residency choices with long-term business and personal goals.

As Southeast Asia intensifies its competition to attract global talent and capital, Indonesia is raising the stakes with a revamped Golden Visa program. Introduced in 2023 and expanded in 2025, the policy now sits in direct comparison with the long-standing Investor KITAS, sparking debate among foreign entrepreneurs and High-Net-Worth Individuals (HNWIs) over which residency pathway offers the better deal. The outcome of this policy shift could shape Indonesia’s position in the region’s visa race, where neighboring countries such as Singapore and Malaysia have already established strong investor residency schemes.The Indonesia <a href="https://cptcorporate.com/golden-visa-5-10-years-vs-investor-kitas-which-is-better-for-founders-and-hnwis-in-2025/">Golden Visa</a> offers residence permits valid for five or ten years, designed for investors, company founders, and wealth holders who meet the government’s minimum thresholds. Beyond its extended validity, the program aims to project Indonesia as a hub for innovation and high-value capital. Holders of the Golden Visa are entitled to live, work, and invest in the country without additional permits, while also being able to sponsor their dependents. For many foreign executives and HNWIs, the Golden Visa represents not only convenience but also a mark of prestige. It reflects Indonesia’s intent to align itself with other regional players such as Singapore’s EntrePass and Malaysia’s MM2H program, both of which are positioned as magnets for global talent.By contrast, the Investor KITAS has long served as the standard route for foreigners establishing companies in Indonesia. The KITAS is valid for one or two years and grants investors the right to live in the country and manage their businesses without needing a separate work permit. Its biggest appeal has been accessibility. The program requires a smaller upfront investment compared to the Golden Visa, and it is directly tied to shareholding in a PT PMA, Indonesia’s foreign-owned company structure. For early-stage entrepreneurs or those testing the waters of the Indonesian market, the Investor KITAS has been a practical way to begin operations without committing too heavily. Yet the administrative cycle of renewals and extensions, often every one or two years, can become burdensome, particularly for HNWIs and executives who prioritize streamlined residency solutions.The question of which program is better in 2025 depends largely on the profile of the applicant. For company founders, the Golden Visa provides stability during a crucial growth phase, allowing them to focus on scaling operations without worrying about visa disruptions. The Investor KITAS, meanwhile, remains useful for entrepreneurs at an earlier stage, who may prefer to keep commitments modest until their businesses have gained traction. For HNWIs, the Golden Visa is a clear winner. Its long validity, prestige, and freedom from frequent renewals align with the priorities of wealth holders who view time and convenience as paramount. The Investor KITAS, while functional, appears more restrictive and less aligned with the lifestyle expectations of this group.More broadly, the expansion of the Golden Visa reflects a deliberate policy shift by Indonesia. Across Southeast Asia, governments are fine-tuning residency frameworks not only to attract investment but also to secure global talent in sectors such as technology, energy, and finance. By offering a decade-long residence permit, Indonesia has placed itself in closer competition with Singapore’s five-year passes and Malaysia’s long-stay programs. This shift suggests that Indonesia is no longer content to serve as a secondary market for capital inflows, but rather aims to position itself as a long-term hub where global wealth and innovation can thrive.Despite these developments, both the Golden Visa and the Investor KITAS involve complex regulatory requirements. From structuring shareholdings and meeting capital thresholds to navigating documentation and timelines, foreign investors face a number of challenges. Missteps in compliance can lead to costly delays or even revocation of permits. This is where professional support becomes crucial. Firms such as CPT Corporate, which specialize in <a href="https://cptcorporate.com/immigration-service/">visa immigration services</a>, help entrepreneurs, investors, and HNWIs manage their applications efficiently while ensuring compliance with Indonesian authorities. Their expertise provides not only smoother processing but also strategic guidance for aligning residency choices with long-term business and personal goals.

Travel / Sightseeing

Indonesia Raises the Stakes in Southeast Asia’s Visa Race with Golden Visa vs KITAS Debate

Indonesia’s revised licensing framework, introduced under <a href="https://cptcorporate.com/common-mistakes-foreign-companies-make-with-indonesias-new-licensing-rules/">Government Regulation No. 28 of 2025 (GR 28/2025)</a>, was designed to accelerate approvals and strengthen compliance. But experts warn that misunderstandings and missteps by foreign investors could put billions in planned investment at risk.

The new system builds on the country’s <a href="https://oss.go.id/">Online Single Submission (OSS) platform</a>, tightening timelines while integrating more processes into the Indonesian National Single Window (INSW). For investors, the changes mean both efficiency gains and higher compliance stakes.

“Foreign companies often underestimate the complexity of risk-based licensing, from KBLI classifications to capital thresholds. Errors can cost millions in delays,” said a senior consultant at CPT Corporate, which advises multinationals on <a href="https://cptcorporate.com/company-registration-indonesia/">company registration and licensing compliance.</a>

Foreign companies commonly stumble in several areas under Indonesia’s new licensing framework. One frequent error is overestimating the role of the NIB (Nomor Induk Berusaha). While it acts as a universal business ID, many firms wrongly assume it replaces all other permits, overlooking the fact that medium- and high-risk sectors still require additional approvals. Another common pitfall involves capital shortfalls. Indonesia enforces strict minimum investment requirements of IDR 10 billion, and companies that fail to meet them often face the costly need for recapitalization. Investors also continue to take risks with nominee shareholder arrangements, despite such structures being explicitly prohibited; these not only violate the law but also render contracts unenforceable. Finally, some firms misuse representative offices (KPPAs) by engaging in sales activity, even though these entities are legally restricted to non-commercial functions such as market research and promotion.

Unlike under the previous GR 5/2021, the new regulation introduces “deemed approvals,” meaning applications can proceed if agencies miss deadlines. While this can speed up investment projects, it also creates a risk: companies not tracking deadlines may forfeit rights without realizing it.

Industry observers note that the implications are significant. With Indonesia continuing to attract large-scale FDI in sectors such as manufacturing, energy, and digital infrastructure, even small compliance errors can jeopardize projects worth hundreds of millions.

Indonesia’s reforms underscore a delicate balance: they seek to streamline investment, but they also demand sharper compliance from foreign entrants. For companies eyeing Southeast Asia’s largest market, understanding the nuances of GR 28/2025 is no longer optional—it is a prerequisite for safeguarding investment.

Indonesia’s revised licensing framework, introduced under <a href="https://cptcorporate.com/common-mistakes-foreign-companies-make-with-indonesias-new-licensing-rules/">Government Regulation No. 28 of 2025 (GR 28/2025)</a>, was designed to accelerate approvals and strengthen compliance. But experts warn that misunderstandings and missteps by foreign investors could put billions in planned investment at risk.The new system builds on the country’s <a href="https://oss.go.id/">Online Single Submission (OSS) platform</a>, tightening timelines while integrating more processes into the Indonesian National Single Window (INSW). For investors, the changes mean both efficiency gains and higher compliance stakes.“Foreign companies often underestimate the complexity of risk-based licensing, from KBLI classifications to capital thresholds. Errors can cost millions in delays,” said a senior consultant at CPT Corporate, which advises multinationals on <a href="https://cptcorporate.com/company-registration-indonesia/">company registration and licensing compliance.</a>Foreign companies commonly stumble in several areas under Indonesia’s new licensing framework. One frequent error is overestimating the role of the NIB (Nomor Induk Berusaha). While it acts as a universal business ID, many firms wrongly assume it replaces all other permits, overlooking the fact that medium- and high-risk sectors still require additional approvals. Another common pitfall involves capital shortfalls. Indonesia enforces strict minimum investment requirements of IDR 10 billion, and companies that fail to meet them often face the costly need for recapitalization. Investors also continue to take risks with nominee shareholder arrangements, despite such structures being explicitly prohibited; these not only violate the law but also render contracts unenforceable. Finally, some firms misuse representative offices (KPPAs) by engaging in sales activity, even though these entities are legally restricted to non-commercial functions such as market research and promotion.Unlike under the previous GR 5/2021, the new regulation introduces “deemed approvals,” meaning applications can proceed if agencies miss deadlines. While this can speed up investment projects, it also creates a risk: companies not tracking deadlines may forfeit rights without realizing it.Industry observers note that the implications are significant. With Indonesia continuing to attract large-scale FDI in sectors such as manufacturing, energy, and digital infrastructure, even small compliance errors can jeopardize projects worth hundreds of millions.Indonesia’s reforms underscore a delicate balance: they seek to streamline investment, but they also demand sharper compliance from foreign entrants. For companies eyeing Southeast Asia’s largest market, understanding the nuances of GR 28/2025 is no longer optional—it is a prerequisite for safeguarding investment.

Advertising / Promotion / PR

Show Business

Billions in Foreign Investment at Risk Under Indonesia’s New Licensing Rules

Indonesia’s regulatory landscape is undergoing significant changes with the introduction of Government Regulation No. 28 of 2025 (PP 28/2025). The regulation represents a refinement of the country’s risk-based licensing regime, aiming to make procedures more transparent, predictable, and investor-friendly. For both domestic enterprises and foreign investors, the update clarifies supervisory standards, enhances the Online Single Submission (OSS) ecosystem, and extends the framework to cover six new sectors that previously operated in less certain regulatory territory.

The core feature of <a href="https://cptcorporate.com/six-new-business-sectors-open-for-licensing-under-indonesias-pp-28-2025/">PP 28/2025</a> is its emphasis on categorizing business activities by risk level, which directly determines the type of licensing required. Low-risk activities now only require a Business Identification Number (NIB), while medium-risk activities demand a combination of an NIB and a Standard Certificate. High-risk activities must obtain both an NIB and a formal license. This structured approach provides greater certainty for companies planning their entry into Indonesia, ensuring that expectations are clear from the outset and reducing the ambiguity that once slowed investment decisions.

The regulation’s most notable change is its expansion of the number of recognized business sectors from 16 to 22, with six new areas brought into the fold. The inclusion of creative economy activities such as film, music, and game development acknowledges the role of intellectual property-driven industries in the nation’s growth. Geospatial information services, which include mapping and satellite data processing, are now bound by explicit governance and quality standards, ensuring greater reliability in sectors that inform both commercial and public decision-making. Cooperatives also benefit from standardized procedures, giving them clearer pathways that bring their compliance processes closer to those applied to companies.

Investment services, often caught in a grey zone between general consultancy and regulated financial activity, now enjoy greater clarity under PP 28/2025. Businesses dealing with trade and legal metrology, such as calibration and verification services, gain licensing routes that incorporate technical benchmarks and ongoing supervision. Finally, the inclusion of electronic systems and transaction operations reflects Indonesia’s recognition of the central role digital platforms play in the economy, with e-commerce, fintech, and social media platforms now required to demonstrate operational readiness and cybersecurity compliance. By formalizing these sectors, the regulation signals that the government is seeking not only to encourage innovation but also to ensure accountability in fast-growing fields.

Another important aspect of the regulation is its clarification of the stages of business activity. Companies must now clearly separate the process of starting a business—covering legal requirements, spatial planning approvals, and the submission of licensing applications—from the operational phase, which encompasses infrastructure readiness, human resources, adherence to standards, and eventual commercial rollout. This distinction helps investors and corporate planners map their timelines more accurately, aligning internal project milestones with regulatory expectations.

PP 28/2025 also addresses the supervision of licensed entities more comprehensively. A tiered sanctions system is introduced, ranging from formal warnings and temporary suspensions to financial penalties and the revocation of licenses. Crucially, these sanctions must be enforced through the OSS system, highlighting the need for companies to maintain complete and up-to-date documentation. To support this, the OSS platform has been expanded with new modules covering basic requirements such as environmental approvals, fiscal incentives for investment, and features designed to encourage partnerships between businesses. These additions mark a broader effort to digitize oversight while offering practical tools that can ease compliance for companies that plan their submissions carefully.

The broader significance of PP 28/2025 lies in its dual objectives. On one hand, it reduces uncertainty for investors by offering predictable licensing pathways and clearer definitions of supervisory responsibilities. On the other, it reinforces the government’s intent to maintain discipline through stronger compliance obligations and a centralized system of enforcement. The recognition of sectors like the creative economy and digital platforms underscores Indonesia’s ambition to position itself as a hub for innovation while continuing to regulate activities with the rigor necessary to protect consumers and maintain fair competition.

For businesses considering expansion, these changes present both opportunities and challenges. The framework offers greater clarity than before, but navigating the specifics of licensing remains complex, particularly for foreign investors unfamiliar with Indonesia’s regulatory culture. Many companies are turning to professional advisors with experience in <a href="https://cptcorporate.com/company-registration-indonesia/">company registration in Indonesia</a> and risk-based licensing to ensure that their market entry is efficient and compliant. Partnering with experts who understand the nuances of both the OSS system and sector-specific requirements can help organizations turn regulatory obligations into a competitive advantage rather than a stumbling block.

Looking ahead, the implementation of PP 28/2025 is expected to increase activity across the newly included sectors. Startups in the creative and digital economies may find the clearer licensing environment attractive, while more traditional industries such as cooperatives and metrology services gain the consistency needed to professionalize their operations. For foreign investors, the regulation signals an ongoing commitment by Indonesia to align its business environment with global expectations of transparency and efficiency. The remaining challenge for regulators will be ensuring that implementation at the local level mirrors the central government’s intent, avoiding the inconsistencies that have historically complicated compliance.

In many ways, PP 28/2025 reflects a balancing act between flexibility and discipline. By reducing bureaucratic hurdles for low-risk sectors while imposing clearer obligations on higher-risk activities, Indonesia is moving toward a more modern licensing framework. For businesses and investors willing to adapt, the regulation not only lowers barriers to entry but also creates a more predictable playing field in one of Southeast Asia’s most dynamic markets.

Indonesia’s regulatory landscape is undergoing significant changes with the introduction of Government Regulation No. 28 of 2025 (PP 28/2025). The regulation represents a refinement of the country’s risk-based licensing regime, aiming to make procedures more transparent, predictable, and investor-friendly. For both domestic enterprises and foreign investors, the update clarifies supervisory standards, enhances the Online Single Submission (OSS) ecosystem, and extends the framework to cover six new sectors that previously operated in less certain regulatory territory.The core feature of <a href="https://cptcorporate.com/six-new-business-sectors-open-for-licensing-under-indonesias-pp-28-2025/">PP 28/2025</a> is its emphasis on categorizing business activities by risk level, which directly determines the type of licensing required. Low-risk activities now only require a Business Identification Number (NIB), while medium-risk activities demand a combination of an NIB and a Standard Certificate. High-risk activities must obtain both an NIB and a formal license. This structured approach provides greater certainty for companies planning their entry into Indonesia, ensuring that expectations are clear from the outset and reducing the ambiguity that once slowed investment decisions.The regulation’s most notable change is its expansion of the number of recognized business sectors from 16 to 22, with six new areas brought into the fold. The inclusion of creative economy activities such as film, music, and game development acknowledges the role of intellectual property-driven industries in the nation’s growth. Geospatial information services, which include mapping and satellite data processing, are now bound by explicit governance and quality standards, ensuring greater reliability in sectors that inform both commercial and public decision-making. Cooperatives also benefit from standardized procedures, giving them clearer pathways that bring their compliance processes closer to those applied to companies.Investment services, often caught in a grey zone between general consultancy and regulated financial activity, now enjoy greater clarity under PP 28/2025. Businesses dealing with trade and legal metrology, such as calibration and verification services, gain licensing routes that incorporate technical benchmarks and ongoing supervision. Finally, the inclusion of electronic systems and transaction operations reflects Indonesia’s recognition of the central role digital platforms play in the economy, with e-commerce, fintech, and social media platforms now required to demonstrate operational readiness and cybersecurity compliance. By formalizing these sectors, the regulation signals that the government is seeking not only to encourage innovation but also to ensure accountability in fast-growing fields.Another important aspect of the regulation is its clarification of the stages of business activity. Companies must now clearly separate the process of starting a business—covering legal requirements, spatial planning approvals, and the submission of licensing applications—from the operational phase, which encompasses infrastructure readiness, human resources, adherence to standards, and eventual commercial rollout. This distinction helps investors and corporate planners map their timelines more accurately, aligning internal project milestones with regulatory expectations.PP 28/2025 also addresses the supervision of licensed entities more comprehensively. A tiered sanctions system is introduced, ranging from formal warnings and temporary suspensions to financial penalties and the revocation of licenses. Crucially, these sanctions must be enforced through the OSS system, highlighting the need for companies to maintain complete and up-to-date documentation. To support this, the OSS platform has been expanded with new modules covering basic requirements such as environmental approvals, fiscal incentives for investment, and features designed to encourage partnerships between businesses. These additions mark a broader effort to digitize oversight while offering practical tools that can ease compliance for companies that plan their submissions carefully.The broader significance of PP 28/2025 lies in its dual objectives. On one hand, it reduces uncertainty for investors by offering predictable licensing pathways and clearer definitions of supervisory responsibilities. On the other, it reinforces the government’s intent to maintain discipline through stronger compliance obligations and a centralized system of enforcement. The recognition of sectors like the creative economy and digital platforms underscores Indonesia’s ambition to position itself as a hub for innovation while continuing to regulate activities with the rigor necessary to protect consumers and maintain fair competition.For businesses considering expansion, these changes present both opportunities and challenges. The framework offers greater clarity than before, but navigating the specifics of licensing remains complex, particularly for foreign investors unfamiliar with Indonesia’s regulatory culture. Many companies are turning to professional advisors with experience in <a href="https://cptcorporate.com/company-registration-indonesia/">company registration in Indonesia</a> and risk-based licensing to ensure that their market entry is efficient and compliant. Partnering with experts who understand the nuances of both the OSS system and sector-specific requirements can help organizations turn regulatory obligations into a competitive advantage rather than a stumbling block.Looking ahead, the implementation of PP 28/2025 is expected to increase activity across the newly included sectors. Startups in the creative and digital economies may find the clearer licensing environment attractive, while more traditional industries such as cooperatives and metrology services gain the consistency needed to professionalize their operations. For foreign investors, the regulation signals an ongoing commitment by Indonesia to align its business environment with global expectations of transparency and efficiency. The remaining challenge for regulators will be ensuring that implementation at the local level mirrors the central government’s intent, avoiding the inconsistencies that have historically complicated compliance.In many ways, PP 28/2025 reflects a balancing act between flexibility and discipline. By reducing bureaucratic hurdles for low-risk sectors while imposing clearer obligations on higher-risk activities, Indonesia is moving toward a more modern licensing framework. For businesses and investors willing to adapt, the regulation not only lowers barriers to entry but also creates a more predictable playing field in one of Southeast Asia’s most dynamic markets.

Politics / Government / Local government

Indonesia Opens Six New Sectors to Licensing Under PP 28/2025

Indonesia has taken a decisive step in adapting to global workforce trends by introducing the <a href="https://cptcorporate.com/how-to-legally-stay-in-indonesia-as-a-remote-worker-with-the-e33g-visa/">E33G Visa</a>, a dedicated permit for remote workers and digital nomads. The regulation allows foreign professionals to legally reside in the country for up to one year while continuing to work for overseas companies or clients. Applicants must demonstrate an annual income of at least USD 60,000 and maintain a bank balance averaging USD 2,000 over the last three months, underscoring Indonesia’s intent to attract financially stable professionals.

The policy responds to a long-standing challenge: the widespread use of short-term tourist visas by digital nomads who, in practice, were staying and working remotely for extended periods. By formalising this pathway, Indonesia seeks to provide legal certainty for foreigners while simultaneously channeling their presence into tangible contributions to the local economy. The E33G Visa also aligns Indonesia with a growing number of destinations worldwide that are introducing digital nomad visas as part of post-pandemic recovery strategies.

Although the application process is relatively straightforward—requiring passports, income records, contracts or proof of international clients, and health insurance—it retains a degree of selectivity. Applications can be submitted online via the <a href="https://www.imigrasi.go.id/">Directorate General of Immigration</a>, but most applicants should expect an in-person component such as biometric verification. The visa is typically valid for six to twelve months, with renewal available if eligibility is maintained.

For digital nomads, the visa provides security and flexibility. Holders can base themselves in Indonesia’s major hubs—Jakarta, Bali, Yogyakarta, Bandung—without the uncertainty of short-stay permits. Still, the restrictions are clear: the visa does not permit work with local clients or any form of income generated within Indonesia. Compliance is crucial to avoid penalties or future complications with immigration.

Taxation remains another area of attention. While the E33G Visa governs immigration status, it does not automatically exempt holders from <a href="https://www.pajak.go.id/">tax obligations</a>. Foreigners who spend sufficient time in Indonesia to qualify as tax residents may still be required to report income, even if earned abroad. This makes professional advice on tax treaties and residency status highly advisable for long-term stayers.

Economically, Indonesia hopes to see a multiplier effect. By attracting remote workers with higher disposable incomes, the country anticipates growth in sectors such as co-working spaces, long-term housing, hospitality, and lifestyle services. Regions already popular with digital nomads, particularly Bali, are expected to see an accelerated impact, potentially reinforcing their status as regional hubs for global professionals.

Navigating immigration requirements, however, can be complex. Many remote workers turn to professional advisors to manage documentation and compliance. Firms such as visa immigration specialists at CPT Corporate are frequently consulted for their <a href="https://cptcorporate.com/immigration-service/">expertise in guiding expatriates and companies through Indonesia’s evolving regulatory environment.</a>

By introducing the E33G Visa, Indonesia is positioning itself more firmly within the global digital economy. The initiative acknowledges the realities of cross-border work while offering foreign professionals a structured, legal basis to live and contribute locally. For Southeast Asia, this move illustrates how regulatory innovation can support both tourism and broader economic development, signalling a trend that other nations in the region may eventually follow.

Indonesia has taken a decisive step in adapting to global workforce trends by introducing the <a href="https://cptcorporate.com/how-to-legally-stay-in-indonesia-as-a-remote-worker-with-the-e33g-visa/">E33G Visa</a>, a dedicated permit for remote workers and digital nomads. The regulation allows foreign professionals to legally reside in the country for up to one year while continuing to work for overseas companies or clients. Applicants must demonstrate an annual income of at least USD 60,000 and maintain a bank balance averaging USD 2,000 over the last three months, underscoring Indonesia’s intent to attract financially stable professionals.The policy responds to a long-standing challenge: the widespread use of short-term tourist visas by digital nomads who, in practice, were staying and working remotely for extended periods. By formalising this pathway, Indonesia seeks to provide legal certainty for foreigners while simultaneously channeling their presence into tangible contributions to the local economy. The E33G Visa also aligns Indonesia with a growing number of destinations worldwide that are introducing digital nomad visas as part of post-pandemic recovery strategies.Although the application process is relatively straightforward—requiring passports, income records, contracts or proof of international clients, and health insurance—it retains a degree of selectivity. Applications can be submitted online via the <a href="https://www.imigrasi.go.id/">Directorate General of Immigration</a>, but most applicants should expect an in-person component such as biometric verification. The visa is typically valid for six to twelve months, with renewal available if eligibility is maintained.For digital nomads, the visa provides security and flexibility. Holders can base themselves in Indonesia’s major hubs—Jakarta, Bali, Yogyakarta, Bandung—without the uncertainty of short-stay permits. Still, the restrictions are clear: the visa does not permit work with local clients or any form of income generated within Indonesia. Compliance is crucial to avoid penalties or future complications with immigration.Taxation remains another area of attention. While the E33G Visa governs immigration status, it does not automatically exempt holders from <a href="https://www.pajak.go.id/">tax obligations</a>. Foreigners who spend sufficient time in Indonesia to qualify as tax residents may still be required to report income, even if earned abroad. This makes professional advice on tax treaties and residency status highly advisable for long-term stayers.Economically, Indonesia hopes to see a multiplier effect. By attracting remote workers with higher disposable incomes, the country anticipates growth in sectors such as co-working spaces, long-term housing, hospitality, and lifestyle services. Regions already popular with digital nomads, particularly Bali, are expected to see an accelerated impact, potentially reinforcing their status as regional hubs for global professionals.Navigating immigration requirements, however, can be complex. Many remote workers turn to professional advisors to manage documentation and compliance. Firms such as visa immigration specialists at CPT Corporate are frequently consulted for their <a href="https://cptcorporate.com/immigration-service/">expertise in guiding expatriates and companies through Indonesia’s evolving regulatory environment.</a>By introducing the E33G Visa, Indonesia is positioning itself more firmly within the global digital economy. The initiative acknowledges the realities of cross-border work while offering foreign professionals a structured, legal basis to live and contribute locally. For Southeast Asia, this move illustrates how regulatory innovation can support both tourism and broader economic development, signalling a trend that other nations in the region may eventually follow.

Indonesia Introduces E33G Visa for Remote Workers

Indonesia has introduced tougher immigration regulations in 2025, imposing fines of IDR 1 million (approximately USD 65) per day on foreign nationals who overstay their visas, with mandatory deportation after 60 days. The move places Indonesia among Southeast Asia’s strictest countries for immigration enforcement and underscores the government’s effort to tighten border controls and labor market protections.

The regulation, which applies nationwide, also introduces re-entry bans lasting from six months up to two years for those deported. Authorities confirmed that with the adoption of <a href="https://id.flado.id/2025/05/22/aturan-baru-perpanjangan-visa-dan-itas-di-indonesia-kini-harus-datang-langsung/">biometric verification</a> and digital tracking at entry and exit points, overstays are now virtually impossible to avoid. Even a single day beyond a visa’s validity requires immediate payment of fines before departure.

The measures are expected to impact a wide range of groups: tourists extending their stays in Bali, digital nomads working remotely, expatriates on corporate assignments, and investors maintaining long-term business operations in Indonesia. Officials argue that stricter enforcement is necessary to address the rise in undocumented work and misuse of short-term visas for employment purposes.

Overstaying has long been an issue in Indonesia, often due to lack of awareness rather than deliberate violation. Under the new framework, however, excuses such as administrative delays or misunderstanding of visa terms will no longer prevent enforcement. Immigration authorities have urged foreigners to carefully monitor their entry stamps, account for public holidays when offices are closed, and rely only on official channels for visa extensions.

For those already in violation, the process is clear: report immediately to the nearest immigration office, pay the accumulated fines, and arrange prompt departure. Deportation becomes automatic after 60 days, and detention is possible if fines cannot be settled quickly.

The introduction of harsher rules is consistent with global trends toward stronger immigration compliance. Neighboring countries such as Thailand and Malaysia have also stepped up penalties for overstays in recent years, though Indonesia’s IDR 1 million daily fine is among the region’s highest. The measures reflect Jakarta’s broader strategy of safeguarding domestic labor while ensuring that foreign nationals comply strictly with the terms of their entry.

Professional assistance has become increasingly valuable for expatriates and companies managing international staff. Advisory firms such as CPT Corporate provide <a href="https://cptcorporate.com/immigration-service/">support with visa applications, extensions, and KITAS processing</a>, helping foreign nationals and businesses navigate Indonesia’s tightening regulatory environment.

With Indonesia’s growing appeal as both a tourist hotspot and an investment hub, the government’s tougher stance signals a clear message: compliance is non-negotiable. For foreigners planning to live, work, or travel in the country, <a href="https://cptcorporate.com/the-cost-of-overstaying-your-visa-in-indonesia-in-2025-what-you-need-to-know/">overstaying a visa in 2025</a> is no longer a minor infraction but a serious legal risk with financial, reputational, and operational consequences.

Indonesia has introduced tougher immigration regulations in 2025, imposing fines of IDR 1 million (approximately USD 65) per day on foreign nationals who overstay their visas, with mandatory deportation after 60 days. The move places Indonesia among Southeast Asia’s strictest countries for immigration enforcement and underscores the government’s effort to tighten border controls and labor market protections.The regulation, which applies nationwide, also introduces re-entry bans lasting from six months up to two years for those deported. Authorities confirmed that with the adoption of <a href="https://id.flado.id/2025/05/22/aturan-baru-perpanjangan-visa-dan-itas-di-indonesia-kini-harus-datang-langsung/">biometric verification</a> and digital tracking at entry and exit points, overstays are now virtually impossible to avoid. Even a single day beyond a visa’s validity requires immediate payment of fines before departure.The measures are expected to impact a wide range of groups: tourists extending their stays in Bali, digital nomads working remotely, expatriates on corporate assignments, and investors maintaining long-term business operations in Indonesia. Officials argue that stricter enforcement is necessary to address the rise in undocumented work and misuse of short-term visas for employment purposes.Overstaying has long been an issue in Indonesia, often due to lack of awareness rather than deliberate violation. Under the new framework, however, excuses such as administrative delays or misunderstanding of visa terms will no longer prevent enforcement. Immigration authorities have urged foreigners to carefully monitor their entry stamps, account for public holidays when offices are closed, and rely only on official channels for visa extensions.For those already in violation, the process is clear: report immediately to the nearest immigration office, pay the accumulated fines, and arrange prompt departure. Deportation becomes automatic after 60 days, and detention is possible if fines cannot be settled quickly.The introduction of harsher rules is consistent with global trends toward stronger immigration compliance. Neighboring countries such as Thailand and Malaysia have also stepped up penalties for overstays in recent years, though Indonesia’s IDR 1 million daily fine is among the region’s highest. The measures reflect Jakarta’s broader strategy of safeguarding domestic labor while ensuring that foreign nationals comply strictly with the terms of their entry.Professional assistance has become increasingly valuable for expatriates and companies managing international staff. Advisory firms such as CPT Corporate provide <a href="https://cptcorporate.com/immigration-service/">support with visa applications, extensions, and KITAS processing</a>, helping foreign nationals and businesses navigate Indonesia’s tightening regulatory environment.With Indonesia’s growing appeal as both a tourist hotspot and an investment hub, the government’s tougher stance signals a clear message: compliance is non-negotiable. For foreigners planning to live, work, or travel in the country, <a href="https://cptcorporate.com/the-cost-of-overstaying-your-visa-in-indonesia-in-2025-what-you-need-to-know/">overstaying a visa in 2025</a> is no longer a minor infraction but a serious legal risk with financial, reputational, and operational consequences.

Full time job / Part-time job / Career

Indonesia Imposes Stricter Penalties on Visa Overstays in 2025 as Foreign Nationals Face Deportation

In mid-2025, the Indonesian Directorate General of Immigration introduced significant changes to visa renewal procedures, requiring applicants to be physically present at an immigration office. This new policy combines online registration with in-person attendance for biometric verification and a short interview, aimed at improving oversight and preventing misuse of stay permits by foreign nationals.

This policy was implemented to ensure stricter oversight of various visa types valid in Indonesia, such as Visa on Arrival (VOA), KITAS extensions, and temporary stay permits. The Indonesian government hopes to combat immigration violations, such as overstaying or unauthorized use of stay permits. This policy is expected to allow for more accurate verification of all submitted documents and early detection of potential misuse.

One of the main changes is the requirement for applicants to submit applications online through the official Indonesian Immigration portal (evisa.imigrasi.go.id). Applicants are then required to appear in person at the immigration office for biometric processing, such as photo capture, fingerprint scanning, and a brief interview regarding their planned stay in Indonesia. This requirement applies to all types of visas and stay permits requiring extension, except for certain vulnerable groups, such as the elderly, people with disabilities, or pregnant or breastfeeding women, who can still submit applications manually with the assistance of staff.

Furthermore, although the initial process is conducted online, a physical presence at the immigration office is still required to complete the visa extension process. This is to ensure that submitted documents are authentic and have not been tampered with. A decision regarding visa approval will be processed after an interview, with approval times varying depending on the visa type and whether additional approvals are required.<a href="https://www.imigrasi.go.id/">Directorate General of Immigration</a>.

While this procedure may seem inconvenient to some, there are several benefits worth noting.<a href="https://cptcorporate.com/in-person-visa-extension-in-indonesia-2025-complete-guide-to-stay-compliant/">Face to face process</a>This ensures that submitted data is more accurate and can be verified. Furthermore, applicants can resolve any document issues or deficiencies directly, avoiding further delays in their visa renewal process. Furthermore, this system provides greater transparency into applicants' residence permit and visa records, which is crucial for ensuring a person's legal status remains valid while in Indonesia.

However, as with any administrative process, there are still some challenges to overcome. One of the main issues is late submissions or incomplete documents. Some immigration offices, especially those in major tourist destinations like Bali or Jakarta, are often highly congested, so applicants should be prepared for potentially longer wait times. Therefore, it is highly recommended to start the process early.<a href="https://cptcorporate.com/immigration-service/">visa extension</a>at least seven to ten days before your visa expires. Applicants must also ensure that all required documents are complete and meet immigration requirements.

For those who are struggling to understand these procedural changes or need further guidance, professional consulting services like those offered by <a href="https://cptcorporate.com/immigration-service/">CPT Corporate</a> can be invaluable. CPT Corporate provides services that include immigration consultations, document preparation, and assistance during the visa renewal process at the immigration office. With expert assistance, you can more easily navigate this sometimes complex process, ensuring that all requirements are met correctly and on time.

Overall, while this visa extension process with physical presence brings new challenges, it also provides an opportunity to strengthen Indonesia's immigration system and ensure that foreigners living or working in the country comply with all applicable regulations. For expatriates and tourists planning to extend their visas, it's important to understand each step of the process to avoid issues and ensure a smooth journey.

If you need assistance ensuring your visa renewal process runs smoothly, CPT Corporate can be your trusted partner in handling all aspects of immigration, from registration to administrative processing at the immigration office. With professional guidance, you can mitigate risks and ensure your stay permit remains valid and complies with applicable regulations.

In mid-2025, the Indonesian Directorate General of Immigration introduced significant changes to visa renewal procedures, requiring applicants to be physically present at an immigration office. This new policy combines online registration with in-person attendance for biometric verification and a short interview, aimed at improving oversight and preventing misuse of stay permits by foreign nationals.This policy was implemented to ensure stricter oversight of various visa types valid in Indonesia, such as Visa on Arrival (VOA), KITAS extensions, and temporary stay permits. The Indonesian government hopes to combat immigration violations, such as overstaying or unauthorized use of stay permits. This policy is expected to allow for more accurate verification of all submitted documents and early detection of potential misuse.One of the main changes is the requirement for applicants to submit applications online through the official Indonesian Immigration portal (evisa.imigrasi.go.id). Applicants are then required to appear in person at the immigration office for biometric processing, such as photo capture, fingerprint scanning, and a brief interview regarding their planned stay in Indonesia. This requirement applies to all types of visas and stay permits requiring extension, except for certain vulnerable groups, such as the elderly, people with disabilities, or pregnant or breastfeeding women, who can still submit applications manually with the assistance of staff.Furthermore, although the initial process is conducted online, a physical presence at the immigration office is still required to complete the visa extension process. This is to ensure that submitted documents are authentic and have not been tampered with. A decision regarding visa approval will be processed after an interview, with approval times varying depending on the visa type and whether additional approvals are required.<a href="https://www.imigrasi.go.id/">Directorate General of Immigration</a>.While this procedure may seem inconvenient to some, there are several benefits worth noting.<a href="https://cptcorporate.com/in-person-visa-extension-in-indonesia-2025-complete-guide-to-stay-compliant/">Face to face process</a>This ensures that submitted data is more accurate and can be verified. Furthermore, applicants can resolve any document issues or deficiencies directly, avoiding further delays in their visa renewal process. Furthermore, this system provides greater transparency into applicants' residence permit and visa records, which is crucial for ensuring a person's legal status remains valid while in Indonesia.However, as with any administrative process, there are still some challenges to overcome. One of the main issues is late submissions or incomplete documents. Some immigration offices, especially those in major tourist destinations like Bali or Jakarta, are often highly congested, so applicants should be prepared for potentially longer wait times. Therefore, it is highly recommended to start the process early.<a href="https://cptcorporate.com/immigration-service/">visa extension</a>at least seven to ten days before your visa expires. Applicants must also ensure that all required documents are complete and meet immigration requirements.For those who are struggling to understand these procedural changes or need further guidance, professional consulting services like those offered by <a href="https://cptcorporate.com/immigration-service/">CPT Corporate</a> can be invaluable. CPT Corporate provides services that include immigration consultations, document preparation, and assistance during the visa renewal process at the immigration office. With expert assistance, you can more easily navigate this sometimes complex process, ensuring that all requirements are met correctly and on time.Overall, while this visa extension process with physical presence brings new challenges, it also provides an opportunity to strengthen Indonesia's immigration system and ensure that foreigners living or working in the country comply with all applicable regulations. For expatriates and tourists planning to extend their visas, it's important to understand each step of the process to avoid issues and ensure a smooth journey.If you need assistance ensuring your visa renewal process runs smoothly, CPT Corporate can be your trusted partner in handling all aspects of immigration, from registration to administrative processing at the immigration office. With professional guidance, you can mitigate risks and ensure your stay permit remains valid and complies with applicable regulations.

Does Visa Extension in Indonesia Require In-Person?

Indonesia has introduced a major regulatory update with the issuance of Government Regulation (PP) No. 28 of 2025. The measure replaces PP No. 5/2021 and reshapes the country’s risk-based licensing system for businesses. For both foreign investors and local entrepreneurs, the new rules represent more than just an administrative shift—they alter how businesses must prepare, register, and operate in Indonesia’s evolving investment landscape.

One of the most significant changes in <a href="https://cptcorporate.com/gr-28-2025-company-registration-in-indonesia/">PP 28/2025</a> is the expansion of sectors requiring formal licensing. Where previously 305 sectors were included, the new regulation brings the total to 327. The additions are not marginal; they include areas that reflect Indonesia’s economic ambitions, such as the creative economy, geospatial information services, legal metrology, cooperatives and investment activities, and electronic systems and digital transactions.

For foreign investors, this change is particularly important. Establishing a Foreign Investment Company (PT PMA) now requires close scrutiny of whether the chosen line of business falls within these newly regulated categories. If so, companies must prepare additional permits and supporting documentation, extending the compliance process.

PP 28/2025 retains the tiered risk-based classification that determines licensing requirements. Businesses are categorized as:

Low Risk: Only a Business Identification Number (NIB) is required.

Medium-Low Risk: NIB plus a self-declared Standard Certificate.

Medium-High Risk: NIB plus a verified Standard Certificate.

High Risk: NIB plus a full business license.

Foreign-owned companies often find themselves in the higher-risk categories, which can lengthen the approval timeline and increase the level of scrutiny. Understanding where a business falls within this framework is essential for both strategic planning and operational readiness.

PP 28/2025 brings two immediate challenges for foreign investors. First, business activities previously exempt from licensing may now require permits, creating additional compliance obligations. Second, ownership in sectors classified as high-risk can trigger stricter requirements, complicating the licensing process.

The government’s Online Single Submission (OSS) system has also been upgraded to assess risk profiles in real time. While this enhances transparency, it demands precision in preparing documents—errors or incomplete filings are more likely to cause delays.

Failure to comply carries heavier consequences under the new rules. Administrative sanctions range from warnings to license revocations, underscoring the need for meticulous compliance strategies. Furthermore, coordination between central and regional authorities is now emphasized, meaning businesses must align not only with national regulations but also with local requirements.

For companies navigating these changes—particularly PT PMAs—expert guidance is becoming increasingly valuable. Many businesses are turning to legal and corporate secretarial service providers to minimize procedural risks and streamline registration processes.

Specialist firms like CPT Corporate have extensive experience assisting both foreign and domestic investors with <a href="https://cptcorporate.com/gr-28-2025-company-registration-in-indonesia/">company registration in Indonesia</a>. By helping businesses analyze risk classifications, prepare licensing applications, and adapt documentation to the OSS framework, such advisors play a key role in avoiding costly missteps.

Ultimately, PP 28/2025 represents more than an administrative reform. It is part of Indonesia’s broader strategy to attract investment while ensuring legal certainty, environmental protection, and higher service standards. For investors, the regulation demands not only compliance but also adaptability, those who understand and prepare for the new requirements can position themselves advantageously.

In this context, regulatory change should not be viewed solely as a hurdle. By adopting sound compliance practices and leveraging professional support where needed, businesses can build stronger operational foundations and enhance their long-term resilience in Indonesia’s dynamic market.

Indonesia has introduced a major regulatory update with the issuance of Government Regulation (PP) No. 28 of 2025. The measure replaces PP No. 5/2021 and reshapes the country’s risk-based licensing system for businesses. For both foreign investors and local entrepreneurs, the new rules represent more than just an administrative shift—they alter how businesses must prepare, register, and operate in Indonesia’s evolving investment landscape.One of the most significant changes in <a href="https://cptcorporate.com/gr-28-2025-company-registration-in-indonesia/">PP 28/2025</a> is the expansion of sectors requiring formal licensing. Where previously 305 sectors were included, the new regulation brings the total to 327. The additions are not marginal; they include areas that reflect Indonesia’s economic ambitions, such as the creative economy, geospatial information services, legal metrology, cooperatives and investment activities, and electronic systems and digital transactions.For foreign investors, this change is particularly important. Establishing a Foreign Investment Company (PT PMA) now requires close scrutiny of whether the chosen line of business falls within these newly regulated categories. If so, companies must prepare additional permits and supporting documentation, extending the compliance process.PP 28/2025 retains the tiered risk-based classification that determines licensing requirements. Businesses are categorized as:Low Risk: Only a Business Identification Number (NIB) is required.Medium-Low Risk: NIB plus a self-declared Standard Certificate.Medium-High Risk: NIB plus a verified Standard Certificate.High Risk: NIB plus a full business license.Foreign-owned companies often find themselves in the higher-risk categories, which can lengthen the approval timeline and increase the level of scrutiny. Understanding where a business falls within this framework is essential for both strategic planning and operational readiness.PP 28/2025 brings two immediate challenges for foreign investors. First, business activities previously exempt from licensing may now require permits, creating additional compliance obligations. Second, ownership in sectors classified as high-risk can trigger stricter requirements, complicating the licensing process.The government’s Online Single Submission (OSS) system has also been upgraded to assess risk profiles in real time. While this enhances transparency, it demands precision in preparing documents—errors or incomplete filings are more likely to cause delays.Failure to comply carries heavier consequences under the new rules. Administrative sanctions range from warnings to license revocations, underscoring the need for meticulous compliance strategies. Furthermore, coordination between central and regional authorities is now emphasized, meaning businesses must align not only with national regulations but also with local requirements.For companies navigating these changes—particularly PT PMAs—expert guidance is becoming increasingly valuable. Many businesses are turning to legal and corporate secretarial service providers to minimize procedural risks and streamline registration processes.Specialist firms like CPT Corporate have extensive experience assisting both foreign and domestic investors with <a href="https://cptcorporate.com/gr-28-2025-company-registration-in-indonesia/">company registration in Indonesia</a>. By helping businesses analyze risk classifications, prepare licensing applications, and adapt documentation to the OSS framework, such advisors play a key role in avoiding costly missteps.Ultimately, PP 28/2025 represents more than an administrative reform. It is part of Indonesia’s broader strategy to attract investment while ensuring legal certainty, environmental protection, and higher service standards. For investors, the regulation demands not only compliance but also adaptability, those who understand and prepare for the new requirements can position themselves advantageously.In this context, regulatory change should not be viewed solely as a hurdle. By adopting sound compliance practices and leveraging professional support where needed, businesses can build stronger operational foundations and enhance their long-term resilience in Indonesia’s dynamic market.

Indonesia Government Regulation No. 28/2025 and Its Implications for Foreign Investors and Businesses

Manila, Philippine - An investigation by
KnowSulu highlights how Therium, once a litigation funding powerhouse, is
scaling back and transferring liabilities amid mounting losses, a cautionary
tale for third‑party legal finance.

Therium amassed over £1 billion
in committed funding from institutional investors over the past decade. But
these “committed” sums are
long‑term investments, locked into a few protracted, high‑stakes cases,
exposing millions to single-case downfall.

Litigation Funding Mechanism Under Scrutiny

Funders back legal claims in exchange for a multiple‑of‑capital
plus a percentage of recoveries. For instance, Therium structured returns as 3×
the investment plus 20% above £100 million
in the HSBC/ECU case. Yet, when claims fail, funders can even be on the hook
for pre-investment costs, highlighted in recent UK rulings.

Post
 Office Horizon: Therium invested around £24million. After reimbursement of its stake,
 funders, and legal fees in the £58million settlement,
 claimants received just £12million collectively,
 barely breaking even.Sabah
 Arbitration: Over $20million
 already spent on a $15billion
 claim tied to Sulu heirs, yet enforceability remains uncertain, and
 returns are far from assured.

The 2023 UK Supreme Court’s PACCAR decision reclassified
many litigation finance deals as damages‑based agreements (DBAs), subject to
regulation capping recovery at 50% and limiting eligible parties to licensed
lawyers. That has invalidated or weakened many funder agreements.

Funders pivoted to investment‑multiple models, yet courts
are scrutinizing even small DBA‑style clauses. Therium v Bugsby Property is now
testing whether they can strip such clauses and still secure payment.

Facing legal uncertainty, concentration risk, and lacklustre
returns, Therium has scaled back operations and transferred portfolios to
Fortress Investment Group. Internal sources indicate the firm now focuses on
managing legacy cases rather than launching new ones.

While litigation finance broadens access to justice,
especially in group suits, its viability hinges on balancing social impact with
investor returns. As UK courts reclassify agreements, enforcement grows murky,
and big‑ticket deals underperform, the model’s future credibility is at stake.

Read full article:&nbsp; <a href="https://knowsulu.ph/unforeseen-consequences/theriums-gamble-how-big-money-still-breeds-big-losses-in-litigation-funding">https://knowsulu.ph/unforeseen-consequences/theriums-gamble-how-big-money-still-breeds-big-losses-in-litigation-funding</a>

Despite raising over £1 billion in committed capital, Therium's aggressive bets in high‑risk cases, from the Sabah $15 billion arbitration to the Post Office scandal, have yielded paltry returns, exposing systemic vulnerabilities in the litigation funding industry. Manila, Philippine - An investigation by
KnowSulu highlights how Therium, once a litigation funding powerhouse, is
scaling back and transferring liabilities amid mounting losses, a cautionary
tale for third‑party legal finance.Big Capital, Bigger RisksTherium amassed over £1 billion
in committed funding from institutional investors over the past decade. But
these “committed” sums are
long‑term investments, locked into a few protracted, high‑stakes cases,
exposing millions to single-case downfall.Litigation Funding Mechanism Under ScrutinyFunders back legal claims in exchange for a multiple‑of‑capital
plus a percentage of recoveries. For instance, Therium structured returns as 3×
the investment plus 20% above £100 million
in the HSBC/ECU case. Yet, when claims fail, funders can even be on the hook
for pre-investment costs, highlighted in recent UK rulings.Showcase FailuresPost
 Office Horizon: Therium invested around £24million. After reimbursement of its stake,
 funders, and legal fees in the £58million settlement,
 claimants received just £12million collectively,
 barely breaking even.Sabah
 Arbitration: Over $20million
 already spent on a $15billion
 claim tied to Sulu heirs, yet enforceability remains uncertain, and
 returns are far from assured.Regulatory Shifts: PACCAR FalloutThe 2023 UK Supreme Court’s PACCAR decision reclassified
many litigation finance deals as damages‑based agreements (DBAs), subject to
regulation capping recovery at 50% and limiting eligible parties to licensed
lawyers. That has invalidated or weakened many funder agreements.Funders pivoted to investment‑multiple models, yet courts
are scrutinizing even small DBA‑style clauses. Therium v Bugsby Property is now
testing whether they can strip such clauses and still secure payment.Facing legal uncertainty, concentration risk, and lacklustre
returns, Therium has scaled back operations and transferred portfolios to
Fortress Investment Group. Internal sources indicate the firm now focuses on
managing legacy cases rather than launching new ones.What This Means for the IndustryWhile litigation finance broadens access to justice,
especially in group suits, its viability hinges on balancing social impact with
investor returns. As UK courts reclassify agreements, enforcement grows murky,
and big‑ticket deals underperform, the model’s future credibility is at stake.Read full article:&nbsp; <a href="https://knowsulu.ph/unforeseen-consequences/theriums-gamble-how-big-money-still-breeds-big-losses-in-litigation-funding">https://knowsulu.ph/unforeseen-consequences/theriums-gamble-how-big-money-still-breeds-big-losses-in-litigation-funding</a>

Think tank

Financial results announcement

Despite raising over £1 billion in committed capital, Therium's aggressive bets in high‑risk cases, from the Sabah $15 billion arbitration to the Post Office scandal, have yielded paltry returns, exposing systemic vulnerabilities in the litigation funding industry.

Therium’s Multi‑Million Gambles Expose Structural Risks in Litigation Finance

London, June 17 2025— Fortress Investment Group has quietly
assumed operational control of Therium Capital Management’s global
litigation-funding portfolio, completing a discreet transfer executed on 11
June 2025 after months of deep restructuring at Therium.

The hand-off, which covers more than forty active disputes
spanning Europe, Asia and North America, is the largest realignment the asset
class has seen since the United Kingdom’s PACCAR decision tightened
recoverability rules for funders last year. Fortress, an alternative-assets
manager overseeing roughly US $70 billion and already exposed to some US $6.8
billion in legal assets, will now set budgets, determine strategy and authorise
capital calls for every matter previously under Therium’s watch.

Practitioners predict an immediate cultural shift. Therium
historically offered flexible, claimant-friendly drawdowns and tolerated longer
timelines; Fortress operates on quarterly performance metrics, demands weekly
reporting and applies strict risk-adjusted return hurdles. Claimants whose
cases have drifted, or whose damages models have weakened, may be pressed to
accept earlier settlements, post additional security or face funding withdrawal
if revised forecasts fail to satisfy those hurdles.

Insiders also anticipate tougher document scrutiny. Fortress
is expected to require comprehensive counsel memoranda, granular budgets broken
into six-month tranches and rolling scenario analyses before it releases each
slice of capital. Lawyers who miss new benchmarks risk payment delays, while
co-funders may be asked to surrender a larger share of upside to compensate for
heightened volatility.

The controversial US $14.92 billion claim brought by the
heirs of the Sultanate of Sulu against Malaysia remains funded but “under
review.” Observers believe Fortress will keep the asset on the books until a
Spanish court rules on pending annulment proceedings, yet several sources
caution that further adverse findings could trigger an exit clause embedded in
the transfer agreement.

Stakeholders therefore have a narrow window to renegotiate
terms before Fortress completes its baseline portfolio review in early July.
Delays will likely prove costly for all parties.

Analysts view the takeover as part of a broader
consolidation trend in which large credit houses seek to ring-fence litigation
risk during an era of rising capital costs. Should Fortress succeed in
streamlining the inherited book, peers such as Burford Capital and Omni
Bridgeway may pursue similar bolt-on acquisitions to defend margins and
reassure investors.

For claimants and law firms the message is clear:
documentation must be airtight, timelines realistic and economic models
defensible, because the era of lightly monitored, open-ended funding has ended.

Therium Capital Management quietly ceded control of its litigation portfolio to Fortress Investment Group on 11 June 2025, following layoffs and the formation of Therium Capital Advisors. Fortress—now overseeing more than US $6.8 billion in legal assets—has introduced granular spend audits, weekly reporting and strict risk-return hurdles shaped by the UK Supreme Court’s PACCAR ruling. Claimants, including those in the annulled US $14.92 billion Sulu arbitration, could face delays, early settlements or funding withdrawal, while investors brace for lengthened timelines and volatile secondary-market pricing. Full article: https://knowsulu.ph/the-untold-sulu-story/inside-the-fortress-capital-control-and-the-quiet-collapse-of-therium London, June 17 2025— Fortress Investment Group has quietly
assumed operational control of Therium Capital Management’s global
litigation-funding portfolio, completing a discreet transfer executed on 11
June 2025 after months of deep restructuring at Therium.The hand-off, which covers more than forty active disputes
spanning Europe, Asia and North America, is the largest realignment the asset
class has seen since the United Kingdom’s PACCAR decision tightened
recoverability rules for funders last year. Fortress, an alternative-assets
manager overseeing roughly US $70 billion and already exposed to some US $6.8
billion in legal assets, will now set budgets, determine strategy and authorise
capital calls for every matter previously under Therium’s watch.Practitioners predict an immediate cultural shift. Therium
historically offered flexible, claimant-friendly drawdowns and tolerated longer
timelines; Fortress operates on quarterly performance metrics, demands weekly
reporting and applies strict risk-adjusted return hurdles. Claimants whose
cases have drifted, or whose damages models have weakened, may be pressed to
accept earlier settlements, post additional security or face funding withdrawal
if revised forecasts fail to satisfy those hurdles.Insiders also anticipate tougher document scrutiny. Fortress
is expected to require comprehensive counsel memoranda, granular budgets broken
into six-month tranches and rolling scenario analyses before it releases each
slice of capital. Lawyers who miss new benchmarks risk payment delays, while
co-funders may be asked to surrender a larger share of upside to compensate for
heightened volatility.The controversial US $14.92 billion claim brought by the
heirs of the Sultanate of Sulu against Malaysia remains funded but “under
review.” Observers believe Fortress will keep the asset on the books until a
Spanish court rules on pending annulment proceedings, yet several sources
caution that further adverse findings could trigger an exit clause embedded in
the transfer agreement.Stakeholders therefore have a narrow window to renegotiate
terms before Fortress completes its baseline portfolio review in early July.
Delays will likely prove costly for all parties.Analysts view the takeover as part of a broader
consolidation trend in which large credit houses seek to ring-fence litigation
risk during an era of rising capital costs. Should Fortress succeed in
streamlining the inherited book, peers such as Burford Capital and Omni
Bridgeway may pursue similar bolt-on acquisitions to defend margins and
reassure investors.For claimants and law firms the message is clear:
documentation must be airtight, timelines realistic and economic models
defensible, because the era of lightly monitored, open-ended funding has ended.Image Source: Fortress Investment Group

International activity

Therium Capital Management quietly ceded control of its litigation portfolio to Fortress Investment Group on 11 June 2025, following layoffs and the formation of Therium Capital Advisors. Fortress—now overseeing more than US $6.8 billion in legal assets—has introduced granular spend audits, weekly reporting and strict risk-return hurdles shaped by the UK Supreme Court’s PACCAR ruling. Claimants, including those in the annulled US $14.92 billion Sulu arbitration, could face delays, early settlements or funding withdrawal, while investors brace for lengthened timelines and volatile secondary-market pricing. Full article: https://knowsulu.ph/the-untold-sulu-story/inside-the-fortress-capital-control-and-the-quiet-collapse-of-therium