Indonesia Streamlines Semiconductor Investment Process

New Regulatory Framework for Investment

Indonesia's Investment Minister and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, has guaranteed that the country's investment licensing process will no longer be cumbersome. This assurance comes in response to requests from a consortium of semiconductor companies from the United States and Germany, who are seeking to expedite their investment approval process for a project planned in Batam. The consortium is operating under various entities including PT Quantum Luminous Indonesia, PT Terra Mineral Nusantara, and Tynergy Group (comprising PT Energy Tech Indonesia and PT Essence Global Indonesia).

Key Features of the New Regulation

The recent enactment of Government Regulation (PP) No. 28/2025 on Risk-Based Business Licensing has been cited as the cornerstone of this improvement. Rosan emphasized that the new regulation introduces a positive fictitious licensing system that is automatically integrated, significantly reducing the time required for licensing."If I'm confident that our licensing process is neither lengthy nor difficult, especially with PP 28 introducing integrated and automatic positive fictitious licensing," Rosan stated during an interview at Park Hyatt, Jakarta.

Impact on Semiconductor Investment

The assurance from Rosan comes at a critical time when international investors are looking to establish significant semiconductor manufacturing capabilities in Indonesia. The US-German consortium's interest in Batam highlights the country's strategic importance in the region's semiconductor supply chain. With the new regulatory framework, Indonesia aims to position itself as an attractive destination for high-tech investments.

Future Prospects

The implementation of PP No. 28/2025 is expected to have far-reaching implications beyond the semiconductor sector, potentially boosting overall foreign direct investment in Indonesia. By addressing long-standing concerns about bureaucratic red tape, the government hopes to create a more competitive investment climate that can attract major international players.