The BKPM's duties under the law include coordinating and implementing one stop integrated services, by developing an investor roadmap and providing consultation services to investors seeking capital investments. Although the law contains no provision authorizing BKPM to approve investments, BKPM approval is needed in order for investors to receive immigration facilities or investment incentives. Foreign direct investment in the manufacturing, industrial or non financial services sectors is licensed by BKPM.

A foreigner can own 100% of a business for investment in many industries. Exceptions include certain industries of national importance like health, safety, national defence, security and the environment.

A PMA is a limited liability company with foreign direct investment. The foreign and national shareholders are free to choose members of the supervisory and management board. The employment of a foreign operational director, managers, technicians and even specialized workers is allowed as long as they are deemed to be qualified and necessary to the business.

Although 100% ownership by foreign investors is allowed, day to day management by the foreign entity requires a significant familiarity with Indonesian regulations, industry networks and business culture.

A PMA must have a minimum of two managers/shareholders, and at least one director and chairman. A PMA company is granted a 30 year period to operate after its legal formation. During this period, if an additional investment to the original were undertaken, then a further 30-year period would be granted for the project. It is also possible for third term to be granted for another 30 years.

There are no minimum or maximum total investment (debt plus equity) requirements, however investors in the manufacturing sector typically are expected to have a debt to equity ratio of 3:1 or less, while those in the agricultural or mining sectors may have ratios of 6:1 or greater.

Work visas are readily available for foreign nationals however it is often useful to retain a consultant for this process to expedite the process.

Tax rates - Progressive rates of income tax for individuals rise up to a top rate of 35% applicable to annual taxable incomes in excess of IDR 200 million (Approximately USD 20,000). The top rate of corporate income tax is 30% applicable to taxable incomes of more than IDR 100 million (USD 10,000).

VAT applies to the import and delivery of most goods and service. VAT is collected at a standard rate of 10%.