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[State Symbol] THE PRESIDENT OF THE REPUBLIC OF INDONESIA REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 10 OF 2021 ON BUSINESS FIELDS FOR INVESTMENT WITH THE GRACE OF THE ONE ALMIGHTY GOD THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering : that to implement the provisions of Article 77 and Article 185 letter b of Law Number 11 of 2020 on Job Creation, it is necessary to stipulate a Presidential Regulation on Business Fields for Investment; In view of : 1. Article 4 paragraph (1) of the 1945 Constitution of the Republic of Indonesia; 2. Law Number 25 of 2007 on Investment (State Gazette of the Republic of Indonesia of 2007 Number 67, Supplement to the State Gazette of the Republic of Indonesia Number 4724); 3. Law Number 11 of 2020 on Job Creation (State Gazette of the Republic of Indonesia of 2020 Number 245, Supplement to the State Gazette of the Republic of Indonesia Number 6573); HAS DECIDED: To stipulate : A PRESIDENTIAL REGULATION ON BUSINESS FIELDS FOR INVESTMENT Article 1 In this Presidential Regulation, what is referred to by: 1. Business Field means any form of business activity that is carried out to produce goods or services in the economic sector. 2. Investment means any form of investing activities either conducted by a domestic investor or a foreign Investor to do business in the territory of the Republic of Indonesia. 3. Central Government means the President of the Republic of Indonesia that holds the power to run the government of the Republic of Indonesia, assisted by the Vice President and ministers as referred to in the 1945 Constitution of the Republic of Indonesia. 4. Cooperatives are cooperatives as referred to in Law Number 25 of 1992 on Cooperatives as amended by Law Number 11 of 2020 on Job Creation. 5. Micro, Small, and Medium Scale Enterprises, hereinafter referred to as MSMEs, mean micro, small, and medium scale enterprises as referred to in Law Number 20 of 2008 on Micro, Small, and Medium Scale Enterprises as amended by Law Number 11 of 2020 on Job Creation. 6. Investor means an individual or a business entity that makes an Investment, whether a domestic investor or a foreign investor. 7. Large Scale Enterprises mean a scale of enterprise as referred to in Law Number 20 of 2008 on Micro, Small, and Medium Scale-Enterprises as amended by Law Number 11 of 2020 on Job Creation. 8. Indonesian Standard Industrial Classification is the classification of Indonesian economic activities that produce products/outputs, either in the form of goods or services, based on the Business Fields used as a standard reference and means of coordination, integration and synchronisation of statistical implementation. Article 2 (1) All Business Fields are open to Investment activities, except for the following Business Fields: a. that are declared closed to Investment; or b. for activities that can only be carried out by the Central Government. (2) Business Fields that are declared closed to Investment as referred to in paragraph (1) letter a are Business Fields that cannot be engaged as Business Fields as set out in Article 12 of Law Number 25 of 2007 on Investment as amended by Law Number 11 of 2020 on Job Creation. (3) Business Fields for activities that may only be carried out by the Central Government as referred to in paragraph (1) letter b are activities that are of a service-based nature or relate to strategic defense and security and that cannot be carried out or performed by means of collaborating with any other parties. Article 3 (1) Business Fields that are open as referred to in Article 2 paragraph (1), consist of the following: a. priority Business Fields; b. Business Fields that are allocated to or require partnerships with Cooperatives and MSMEs; c. Business Fields under certain conditions; and d. Business Fields that do not fall within letter a, letter b, and letter c. (2) Business Fields as referred to in paragraph (1) letter d are engaged in by all Investors. Article 4 (1) Priority Business Fields as referred to in Article 3 paragraph (1) letter a are Business Fields that meet the following criteria, namely: a. national strategic projects/programs; b. capital intensive; c. labor intensive; d. high technology; e. pioneer industry; f. export orientation; and/or g. orientation to research, development, and innovation activities. (2) A list of priority Business Fields that meets the criteria as referred to in paragraph (1) specifies the Business Fields, Indonesian Standard Industrial Classification, product coverage, and requirements set out in Attachment I that is an inseparable part of this Presidential Regulation. (3) If the Indonesian Standard Industrial Classification as referred to in paragraph (2) includes more than one business activity, the provisions on the requirements as referred to in Attachment I are only applicable to the Business Fields stated in the column of Business Fields. (4) An Investor that invests in business fields set out in the list of priority Business Fields as referred to in paragraph (2) is given: a. fiscal incentives; and/or b. non-fiscal incentives. (5) Fiscal incentives as referred to in paragraph (4) letter a consists of: a. tax incentives that include: 1. income tax for Investment in certain business fields and/or in certain areas (tax allowance); 2. reduction in corporate income tax (tax holiday); or 3. reduction in corporate income tax and net income reduction facilities for Investment and reduction in gross income for certain activities (investment allowance), including: a) reduction in net income from new Investment or business expansion in certain Business Fields that are labor intensive industries; and/or b) reduction in gross income for implementing work practice, apprenticeship and/or learning activities for the purpose of supervising and developing certain competency-based human resources; and b. customs incentives in the form of exemption from import duties on imported machinery and goods and materials for industrial construction or development for Investment purposes. (6) Non-fiscal incentives as referred to in paragraph (4) letter b include ease of business licensing, provision of supporting infrastructure, security in the availability of energy, security in the availability of raw materials, immigration, employment, and other conveniences in accordance with the prevailing laws and regulations. (7) The granting of fiscal incentives and non-fiscal incentives is in accordance with the prevailing laws and regulations. Article 5 (1) Business Fields that are allocated to or require partnerships with Cooperatives and MSMEs as referred to in Article 3 paragraph (1) letter b are: a. Business Fields allocated to Cooperatives and MSMEs, and b. Business Fields open to Large Scale Enterprises that cooperate through a partnership with Cooperatives and MSMEs. (2) Business Fields allocated to Cooperatives and MSMEs as referred to in paragraph (1) letter a are determined under the following criteria: a. business activities that do not use technology or use simple technology; b. business activities that have a specific process, are labor intensive, and have a special and hereditary cultural heritage; and/or c. business capital for activities that does not exceed Rp.10,000,000,000.00 (ten billion rupiah) excluding the land and buildings value. (3) Business Fields open to Large Scale Enterprises that cooperate through a partnership with Cooperatives and MSMEs as referred to in paragraph (1) letter b are determined under the following criteria: a. Business Fields that are mostly engaged in by Cooperatives and MSMEs; and/or b. Business Fields that are accommodated to get into the supply chain of Large Scale Enterprises . (4) A list of Business Fields that are allocated to or require partnerships with Cooperatives and MSMEs as referred to in paragraph (1) specifies Business Fields, Indonesian Standard Industrial Classification, allocated to Cooperatives and MSMEs, partnerships, and sectors as set out in Attachment II that is an inseparable part of this Presidential Regulation. (5) If the Indonesian Standard Industrial Classification as referred to in paragraph (4) includes more than one Business Field, the provisions on the allocation and partnership as referred to in Attachment II are only applicable to Business Fields as stated in the Column of Business Fields. (6) Cooperatives and MSMEs that are engaged in Business Fields under the criteria as referred to in paragraph (2) and have become Large Scale Enterprises can continue to carry out the business activities concerned in accordance with the prevailing laws and regulations. (7) Cooperatives and MSMEs as referred to in paragraph (6) are required to apply a pattern of partnership with Cooperatives and other MSMEs in the allocated Business Fields. Article 6 (1) Business Fields under certain conditions as referred to in Article 3 paragraph (1) letter c are Business Fields that can be engaged in by all Investors including Cooperatives and MSMEs that meet the following requirements: a. Investment requirements for domestic Investment; b. Investment requirements with foreign-owned capital restrictions; or c. Investment requirements with special licensing. (2) A list of Business Fields under certain conditions as referred to in paragraph (1) specifies Business Fields, Indonesian Standard Industrial Classification and the conditions as set out in Attachment III that is an inseparable part of this Presidential Regulation. (3) If the Indonesian Standard Industrial Classification as referred to in paragraph (2) includes more than one Business Field, the provisions on the conditions as referred to in Attachment III are only applicable to Business Fields as stated in the Column of Business Fields. (4) The requirements for Investment with foreign-owned capital restrictions as referred to in paragraph (1) letter b do not apply to: a. Investments that have been approved in certain Business Fields before this Presidential Regulation was promulgated, are as set out in business licensing, unless the provisions of this Presidential Regulation are more beneficial to such Investment; or b.