The Indonesian Government is supportive of foreign direct participation in the country's development. Under the Constitution, the Government is charged with overall administration and monitoring of the direction of national development efforts, including economic development. Most sectors are open to foreign direct investment except for a few reserved sectors and some sectors governed by special conditions. A corporate business license is good for 30 years and can be renewed for 30 years more. In addition to FDI, there are a variety of other ways in which interested foreign investors can participate in the Indonesian economy.
Foreign companies can allow Indonesian firms to franchise their products and systems.
They can also enter into agreements with Indonesian companies to provide technical assistance, management assistance, or management support combined with financial assistance. Foreigners can purchase shares of Indonesian companies through Indonesian brokerage houses. Another possibility is passive portfolio investment in which the foreign investor purchases a financial instrument, such as a convertible bond. Yet another method through which foreign investors can provide venture capital to unlisted Indonesian companies is exchangeable debt securities. Although virtually all sectors of the Indonesian economy are now open to FDI, there are some which offer special opportunities to foreign investors.