Investment Regulations & Incentives

Comprehensive guide to investment laws, tax incentives, and regulatory framework designed to support your business success in North Sumatra

Legal Framework

Transparent and investor-friendly regulations

Tax Incentives

Competitive tax holidays and exemptions

Fast Processing

Streamlined licensing and approval process

Investment Legal Framework

Indonesia's investment laws provide a solid foundation for business operations with clear regulations and investor protections

Investment Law No. 25/2007

Comprehensive framework for domestic and foreign investment

Equal treatment for domestic and foreign investors
Investment protection and guarantees
Dispute resolution mechanisms
Investment facilitation services

Government Regulation No. 5/2021

Risk-based business licensing for investment ease

Online Single Submission (OSS) system
Risk-based approach to licensing
Reduced bureaucratic procedures
Digital transformation initiatives

Presidential Regulation No. 10/2021

Investment list and business field classifications

Open investment sectors
Priority investment areas
Foreign ownership limitations
Partnership requirements

Legal Compliance Support

Our legal team provides comprehensive support to ensure your investment complies with all applicable regulations and maximizes available benefits.

Legal due diligence assistance
Document preparation and review
Ongoing compliance monitoring
Legal Support

Tax Incentives & Benefits

Comprehensive tax incentive packages designed to maximize your investment returns and accelerate business growth in North Sumatra

Tax Holiday

5-30 years

0% Corporate Income Tax

Pioneer industries, minimum investment $35M

Applicable Sectors:

ManufacturingTechnologyEnergyInfrastructure

Tax Allowance

6 years

30% investment deduction

Priority sectors, minimum investment $2.5M

Applicable Sectors:

AgricultureTourismLogisticsHealthcare

Super Deduction

Ongoing

200% expense deduction

R&D activities, vocational training

Applicable Sectors:

TechnologyEducationResearchInnovation

Import Duty Exemption

Project period

0% import duties

Capital goods and raw materials

Applicable Sectors:

ManufacturingMiningEnergyInfrastructure

Maximize Your Tax Benefits

Our tax specialists help you navigate the incentive landscape to ensure you receive all eligible benefits and maintain compliance.

30%
Average Tax Savings
15
Years Max Holiday

Free consultation with our tax experts

Streamlined Licensing Process

Our simplified four-step licensing process ensures fast and efficient business setup with minimal bureaucratic hurdles

1

Online Registration

Register your business through OSS (Online Single Submission) system

1-2 days
Company documents
Investment plan
Shareholder information
2

NIB Issuance

Receive Business Identification Number (NIB) automatically

Same day
Completed OSS registration
Valid business classification
Investment commitment
3

Sectoral Permits

Obtain specific permits based on your business sector

3-14 days
Environmental assessment
Technical specifications
Location permits
4

Operational License

Final approval to commence business operations

7-21 days
Facility inspection
Compliance verification
Final documentation

Digital Transformation Benefits

Online Processing
24/7 application submission
Faster Processing
Reduced approval time by 70%
Real-time Tracking
Monitor application status

Support Services

Dedicated Support
Personal licensing consultant
Document Assistance
Help with paperwork preparation
Language Support
English and Indonesian assistance

Special Economic Zones

Strategically located special zones offering enhanced incentives, world-class infrastructure, and streamlined business operations

Medan Industrial Estate
Industrial Zone2,500 hectares

Medan Industrial Estate

Medan, North Sumatra

Key Benefits:

Tax holiday up to 15 years
Import duty exemption
Streamlined licensing
Ready infrastructure

Target Sectors:

ManufacturingAutomotiveElectronicsTextiles
Batam Free Trade Zone
Free Trade Zone1,800 hectares

Batam Free Trade Zone

Batam Island

Key Benefits:

0% import/export duties
Free trade zone status
Strategic location
Port connectivity

Target Sectors:

ElectronicsShipbuildingOil & GasLogistics
Lake Toba Tourism Zone
Special Economic Zone3,200 hectares

Lake Toba Tourism Zone

Lake Toba Region

Key Benefits:

Tourism investment incentives
Environmental certification
Marketing support
Infrastructure development

Target Sectors:

TourismHospitalityRecreationCultural

Zone Selection Assistance

Our experts help you choose the optimal special economic zone based on your industry, investment size, and business objectives.

15+
Special Zones
50%
Cost Savings
30
Days Setup

Free zone comparison and recommendation

Compliance Guidelines

Comprehensive compliance framework to ensure your business operations meet all regulatory requirements and maintain good standing

Environmental Compliance

30-90 days

Key Requirements:

Environmental Impact Assessment (AMDAL)
Environmental Management Plan
Waste management procedures
Emission monitoring systems
Environmental consultancy services

Labor Regulations

14-30 days

Key Requirements:

Work permit for foreign employees
Social security registration
Occupational safety standards
Local workforce development
HR compliance assistance

Financial Reporting

Ongoing

Key Requirements:

Indonesian accounting standards
Tax reporting obligations
Foreign exchange regulations
Annual financial audits
Accounting and audit services

Operational Standards

60-120 days

Key Requirements:

Quality management systems
Safety and security protocols
Industry-specific certifications
Regular compliance audits
Operational consulting

Compliance Monitoring System

Our digital compliance monitoring system helps you stay on top of all regulatory requirements with automated reminders and real-time updates.

Automated Alerts
Deadline reminders
Compliance Dashboard
Real-time status
Document Management
Centralized storage
Compliance Reports
Regular assessments
Compliance Monitoring

Professional Support Services

Dedicated team of experts providing comprehensive support throughout your investment journey in North Sumatra

Legal Advisory

Expert legal guidance on investment regulations and compliance

Service Features:

Contract review
Legal due diligence
Dispute resolution
Regulatory updates

Tax Consultation

Comprehensive tax planning and incentive optimization services

Service Features:

Tax incentive analysis
Compliance planning
Audit support
Transfer pricing

Licensing Support

End-to-end assistance with business licensing and permits

Service Features:

Application preparation
Document review
Process tracking
Renewal management

Compliance Monitoring

Ongoing compliance monitoring and regulatory update services

Service Features:

Regular audits
Risk assessment
Corrective actions
Training programs

24/7 Investor Support Center

Our dedicated support center provides round-the-clock assistance for all your regulatory and compliance needs.

Hotline: +62-61-8000-1234
24/7 emergency support
support@nsi.gov.id
Email support within 4 hours
Live Chat Support
Instant messaging assistance
500+
Clients Supported
98%
Success Rate
15
Expert Consultants
24/7
Support Available