As of March 2021, foreign investment in architectural and engineering services associated with small-sized projects are no longer restricted, but FDI in such services associated with projects using simple and medium technology (regardless of value) remains reserved for indonesian-owned SMEs [foreign-invested companies do not qualify as SMEs because of minimum capital requirements]. Previously, foreign investment in architectural and engineering services associated with small-sized projects and/or using simple and medium technology is reserved to SMEs. For the purposes of the OECD FDIRRI, it is assumed that there is no material difference in impact following the removal of the project size-based restriction.
"APPENDIX II - REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 49 OF 2021 CONCERNING AMENDMENT TO PRESIDENTIAL REGULATION NUMBER 10 OF 2021 CONCERNING THE INVESTMENT BUSINESS SECTOR
LIST OF BUSINESS FIELDS ALLOCATED OR PARTNERSHIPS WITH COOPERATIVES AND MICRO, SMALL, AND MEDIUM ENTERPRISES
- Engineering and Technical YBDI Consulting Activities Using Simple and Intermediate Technology [see 2019 restrictions below]: reserved for domestic SMEs [regardless of value as previously][...]" (Presidential Regulation (PERPRES) No. 49 of 2021 Concerning Amendments to Presidential Regulation Number 10 of 2021 concerning Investment Business Fields [google translation])
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"CHAPTER I - GENERAL PROVISIONS
Article 1
In this Agency Regulation what is meant by: [...]
12. Domestic Investment, hereinafter abbreviated as PMDN, is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by Domestic Investors using domestic capital.
13. Foreign Investment, hereinafter abbreviated as PMA, is an investment activity to carry out business in the territory of the Republic of Indonesia carried out by Foreign Investors, both those who use foreign capital completely and those who jointly with Domestic Investors. [...]
41. Micro and Small Enterprises, hereinafter referred to as UMK, are micro and small enterprises as referred to in the Law on Micro, Small and Medium Enterprises.
[...]
Part Two - Business Licensing Applicant
Article 9
(1) Business Actors who can apply for a Business Permit consist of: a. natural person; b. business entity; c. representative office; and D. foreign business entity. [...]
(8) Investments made by business entities as referred to in paragraph (1) letter b are categorized into PMDN and PMA.
(9) The PMA as referred to in paragraph (8) must be in the form of a limited liability company under Indonesian law and domiciled in the territory of the Unitary State of the Republic of Indonesia, unless otherwise stipulated by law.
[...]
Part Four Provisions on Investment Value and Capital
Part 1 - UMK-M [SME]
Article 11
(1) Provisions on the value of investment and capital for complying with the criteria for business capital as stipulated in the government regulation concerning facilitation, protection and empowerment of cooperatives and micro, small and medium enterprises.
(2) The criteria for business capital as referred to in paragraph (1) are regulated as follows:
a. micro businesses have business capital up to a maximum of IDR 1,000,000,000.00 (one billion rupiah) excluding land and buildings for business premises;
b. small business has business capital of more than IDR 1,000,000,000.00 (one billion rupiah) up to a maximum of IDR 5,000,000,000.00 (five billion rupiah) excluding land and buildings for business premises; And
c. medium enterprises having business capital of more than IDR 5,000,000,000.00 (five billion rupiahs) up to a maximum of IDR 10,000,000,000.00 (ten billion rupiahs) excluding land and buildings for business premises.
Part 2 - Big Business
Article 12
(1) Business entities as referred to in Article 9 paragraph (1) letter b classified as PMA [foreign-invested companies] are categorized as large businesses and are required to comply with minimum investment value provisions, unless otherwise stipulated by laws and regulations.
(2) Provisions for the minimum investment value for PMA as referred to in paragraph (1), namely the total investment is greater than IDR 10,000,000,000.00 (ten billion rupiah), excluding land and buildings per business sector KBLI 5 (five) digits per project location. [...]
(6) In addition to the provisions on the minimum investment value as referred to in paragraph (2), for PMA, minimum capital requirements are regulated.
(7) The minimum capital requirements for PMA as referred to in paragraph (6) are issued/paid up capital of at least IDR 10,000,000,000.00 (ten billion rupiah), unless otherwise stipulated by laws and regulations.[...]" (REGULATION OF THE INVESTMENT COORDINATING BOARD OF THE REPUBLIC OF INDONESIA NUMBER 4 OF 2021 CONCERNING GUIDELINES AND PROCEDURES FOR RISK-BASED BUSINESS LICENSING AND INVESTMENT FACILITIES [google translation])
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"CHAPTER V - FOREIGN ENGINEER
Article 23
(1) Foreign Engineers can carry out Engineering Practices in Indonesia after having a work permit for foreign workers in accordance with the provisions of the laws and regulations.
(2) The work permit for foreign workers as referred to in paragraph (1) is issued by the ministry administering government affairs in the field of manpower.
(3) To obtain a work permit for foreign workers as referred to in paragraph (1) Foreign Engineers must have an Engineer Registration Certificate.
(4) Engineer Registration Certificate as referred to in paragraph (3) is issued by PII based on:
a. certificate of registration according to the law of the country; or
b. Engineer Competency Certificate according to the law of the country.
(5) Further provisions regarding the issuance of Engineer Registration Certificate for Foreign Engineers as referred to in paragraph (3) are regulated by PII.
Article 24
(1) Foreign Engineers are obligated to transfer science and technology.
(2) The transfer of knowledge and technology as referred to in paragraph (1) is carried out by:
a. develop and improve engineering practice services at the company or institution where they work;
b. transfer their professional knowledge and abilities to Engineers; and/or
c. provide education and/or training to educational, research, and/or development institutions in the field of engineering free of charge.
(3) Supervision of the implementation of science and technology transfer activities as referred to in paragraph (2) is carried out by DII.
(4) Further provisions regarding the procedure for transferring science and technology as referred to in paragraph (2) are regulated by Ministerial Regulation.[...]" (GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 25 OF 2019 CONCERNING IMPLEMENTING REGULATION OF LAW NUMBER 11 YEAR 2014 ABOUT ENGINEERING [google translation])
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"Part Two - Partnership Patterns
Paragraph 1 - General
Article 104
(1) Partnerships between Micro Enterprises, Small Enterprises and Cooperatives with Medium Enterprises and large enterprises shall be carried out by taking into account the principle of partnership and upholding sound business ethics.
(2) The principle of partnership as referred to in paragraph (1) includes the principle of mutual:
a. need;
b. trust;
c. strengthen; And
d. profitable.
[...]
Article 105
(1) The partnership includes the process of transferring skills in the fields of production and processing, marketing, capital, human resources and technology in accordance with the partnership pattern.
(2) Transfer of skills as referred to in paragraph (1) is provided through training, capacity building, apprenticeship and mentoring to Micro and Small Enterprises.
Article 106
(1) The partnership as referred to in Article 105 is carried out through the pattern of:
a. plasma-nucleus;
b. subcontract;
c. franchise;
d. general trading;
e. distribution and agency;
f. supply chain; And
g. other forms of partnership.
(2) Other forms of partnership as referred to in paragraph (1) letter g, at least:
a. profit sharing;
b. operational cooperation;
c. joint venture (joint uenfitre); And [...]" (GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 7 YEAR 202I REGARDING EASE, PROTECTION AND EMPOWERMENT OF COOPERATIVES AND MICRO, SMALL AND MEDIUM ENTERPRISES [google translaiton])
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Previously
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"APPENDIX II - REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITION TO INVESTMENT
LIST OF BUSINESS FIELDS THAT ARE OPEN WITH CONDITIONS: RESERVED FOR OR IN PARTNERSHIP WITH MICRO, SMALL, AND MEDIUM-SCALE ENTERPRISES AND COOPERATIVES
[Architectural & engineering services]
-Business services/construction consultancy services with simple/medium technology and/or small/medium risks and/or value less than IDR 10,000,000,000: Reserved for SMEs [...]" (PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITIONS TO INVESTMENT)
Presidential Regulation (PERPRES) No. 49 of 2021 Concerning Amendments to Presidential Regulation Number 10 of 2021 concerning Investment Business Fields [google translation]
REGULATION OF THE INVESTMENT COORDINATING BOARD OF THE REPUBLIC OF INDONESIA NUMBER 4 OF 2021 CONCERNING GUIDELINES AND PROCEDURES FOR RISK-BASED BUSINESS LICENSING AND INVESTMENT FACILITIES [google translation]
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 25 OF 2019 CONCERNING IMPLEMENTING REGULATION OF LAW NUMBER 11 YEAR 2014 ABOUT ENGINEERING [google translation])
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 7 YEAR 202I REGARDING EASE, PROTECTION AND EMPOWERMENT OF COOPERATIVES AND MICRO, SMALL AND MEDIUM ENTERPRISES [google translaiton]
PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITIONS TO INVESTMENT
[<a href="https://peraturan.bpk.go.id/Home/Details/168534/perpres-no-49-tahun-2021">PR49</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/161806/perpres-no-10-tahun-2021">PR10</a>],[<a href="https://jdih-storage.bkpm.go.id/jdih/userfiles/documents/2021/10/2021PerBKPM004.pdf">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/105550/pp-no-25-tahun-2019">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/161837/pp-no-7-tahun-2021">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/40374/perpres-no-44-tahun-2016">PR44</a>]