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Priority Investment List Issued by Government

The government has issued a Priority Investment List (DPI) in the Presidential Regulation no.10 of 2021 concerning the Investment Business Sector. The regulation contains DPI which focuses on providing a list of priority business fields or businesses, including National Strategic Projects (PSN), the latest technology, pioneering industries, export-oriented industries, as well as research and development.


Investors who invest in priority sectors will get fiscal and non-fiscal incentives from the fiscal side, incentives can be in the form of investment allowances, super deductions, or import duty exemptions.


Meanwhile, from the non-fiscal side, they can be in the form of ease of doing business, ease of licensing for the implementation of business activities, business support infrastructure, and guarantees for the availability of fuel or energy and raw materials.


In addition, the Indonesian government has established an Investment Management Agency (LPI) to increase, prioritize and optimize long-term investments that will support sustainable development


The government has allocated US$1 billion in 2020 as initial capital of the LPI and will add another US$4 billion this year to optimize the LPI's role. Currently, there is also a Sovereign Wealth Fund of around US$3 billion from three countries, namely the Netherlands, Canada, and the United Arab Emirates (which have entered the LPI).


(Source: Antara News)

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