Investment Ministry Plans to Revise Investor-Local Business Partnership Rules
JAKARTA — The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) plans to revise the implementing regulations on partnerships between investors and local businesses in a given region. The aim is to provide opportunities for local enterprises to participate in such investments.
The partnership policy is currently set out in BKPM Head Regulation No. 1/2022 on Procedures for Implementing Investment Partnerships between Large Enterprises and Micro, Small and Medium Enterprises in the Regions.
BKPM Deputy for Investment Implementation Control Eddy Junaedi said the regulation stipulates that companies investing in a region must allocate a proportion of 1% to 2% to local firms.
"The Minister [Minister of Investment and Downstream Industries Rosan Roeslani] also conveyed that we will revise and evaluate it. We are open to input from the business community, and local governments can also provide recommendations on which local companies can be included in partnerships with investors," Eddy said at the Bisnis Indonesia Forum (BIF) on Wednesday (21/5/2025).
Eddy also touched on the national strategic project (PSN) belonging to Chandra Asri, which had drawn attention after experiencing 'extortion' from individuals claiming to be local business operators. He noted that the chlor-alkali-ethylene dichloride (CA-EDC) chemical plant investment worth Rp15 trillion also includes specific calculations for involving local businesses in its development plans.
"The proportion of 1% to 2% is given to local companies, and the value has been determined. Like Chandra Asri's case, it was already in place, though it does not yet cover technology-related aspects — it is still focused on stimulating the local economy," he said.
In this regard, investors are still permitted to use partners from outside the local business community if the required technology is not yet available locally. However, for work related to road infrastructure, energy, or other areas, local businesses can be included.
Furthermore, Eddy acknowledged that disruptions from individuals engaging in thuggery seriously undermine the investment climate and remain a key challenge for the government. He noted that amid the current difficult geopolitical and economic conditions, investment is regarded as the sole locomotive and key to economic growth.
The partnership policy is currently set out in BKPM Head Regulation No. 1/2022 on Procedures for Implementing Investment Partnerships between Large Enterprises and Micro, Small and Medium Enterprises in the Regions.
BKPM Deputy for Investment Implementation Control Eddy Junaedi said the regulation stipulates that companies investing in a region must allocate a proportion of 1% to 2% to local firms.
"The Minister [Minister of Investment and Downstream Industries Rosan Roeslani] also conveyed that we will revise and evaluate it. We are open to input from the business community, and local governments can also provide recommendations on which local companies can be included in partnerships with investors," Eddy said at the Bisnis Indonesia Forum (BIF) on Wednesday (21/5/2025).
Eddy also touched on the national strategic project (PSN) belonging to Chandra Asri, which had drawn attention after experiencing 'extortion' from individuals claiming to be local business operators. He noted that the chlor-alkali-ethylene dichloride (CA-EDC) chemical plant investment worth Rp15 trillion also includes specific calculations for involving local businesses in its development plans.
"The proportion of 1% to 2% is given to local companies, and the value has been determined. Like Chandra Asri's case, it was already in place, though it does not yet cover technology-related aspects — it is still focused on stimulating the local economy," he said.
In this regard, investors are still permitted to use partners from outside the local business community if the required technology is not yet available locally. However, for work related to road infrastructure, energy, or other areas, local businesses can be included.
Furthermore, Eddy acknowledged that disruptions from individuals engaging in thuggery seriously undermine the investment climate and remain a key challenge for the government. He noted that amid the current difficult geopolitical and economic conditions, investment is regarded as the sole locomotive and key to economic growth.