Perpres 10/2021 in English: the investment list, and the villa row

The regulation that replaced Indonesia's negative investment list. Its annex allocates villas, homestays and guest houses to cooperatives and small business — the row most summaries skip.

Perpres 10/2021, the articles and the lampiran row a property investor meets

This is the regulation people still call the positive (or negative) investment list. It decides which business lines a foreign investor may enter at all. It was amended within four months by Perpres 49/2021, which replaced all three lampiran (Perpres 49/2021 art. I points 3-5) — so a summary built on the February 2021 annexes is reading tables that no longer apply.

The lodging row: five lines kept for cooperatives and small business

Lampiran II is the list of lines lines allocated to, or in partnership with, cooperatives and MSMEs. Its row 48, Jasa Penginapan, has five entries, each ticked in the “allocated” column and none in the “partnership” column. In the regulation’s words, the five are allocated to cooperatives and MSMEs: one-star hotels (55110), non-star hotels (55120), homestays (55130), guest houses (55199) and villas (55193) (Perpres 10/2021 Lampiran II no. 48, as replaced by Perpres 49/2021).

Allocation is not partnership. A partnership line is open to a large business that partners with cooperatives and MSMEs; an allocated line is reserved to them. The criteria for allocation are no or simple technology; special processes, labor-intensive work or a special inherited cultural heritage; and/or business capital of no more than IDR 10 billion excluding land and buildings (Perpres 10/2021 art. 5(2)). A foreign investor, by contrast, may operate only in large businesses with an investment value above IDR 10 billion (Perpres 10/2021 art. 7(1)). Put together, a foreign-owned company cannot hold an allocated line, and the villa is one.

The licensing regulation, written four years later, reaches the same place by a different column: its villa entry is KBLI 55193 Villa: micro, small and medium businesses only; medium-low risk; NIB plus a standard certificate, issued automatically; regent or mayor (PP 28/2025 Lampiran I.L, KBLI 55193). Every accommodation code, with scale and license.

Star hotels: read the line, not the code

The row names “Hotel Bintang 1”, not star hotels. Article 5(5) says an allocation applies only to the business line named in the list, where one KBLI code covers more than one (Perpres 10/2021 art. 5(5)). Our reading is that two-star hotels and above, under the same code, are not allocated — which matches the licensing lampiran, where the star-hotel code is open to large businesses. In Bali, though, new PMA applications in that code under 6,000 m² have been closed since May 2026 (Bali Provincial Government release, 22 July 2026).

What Lampiran III does and does not contain

Lampiran III lists the lines with specific conditions — domestic investors only; a cap on foreign ownership; a special license; or, for alcohol trading, other conditions (Perpres 10/2021 art. 6(1), as amended by Perpres 49/2021). We read the version that Perpres 49/2021 put in place. Its tourism entries are about transport, not lodging, and we found no accommodation or real estate line in it. So for a property investor the binding constraint is not a foreign-ownership percentage; it is the allocation in Lampiran II and the large-business rule in article 7. That is our reading of the list as published; it is the kind of conclusion to confirm against the official scan, which is linked below.

Two exceptions in the body of the regulation are worth knowing. Article 6(4) protects investments approved before the regulation from a newer foreign-ownership cap, unless the new rule is more favorable. And the allocation and the conditions do not apply to indirect or portfolio investment made through the Indonesian capital market (Perpres 10/2021 art. 9) — buying listed shares in a hotel company is a different act from running a villa.

Open by default, closed by name

The structure is the reverse of the old negative list. Article 2(1) makes every line open to investment unless declared closed or reserved to central government (Perpres 10/2021 art. 2(1), as amended by Perpres 49/2021); the 2021 amendment added that open lines are commercial ones, and closed alcoholic-beverage manufacturing (KBLI 11010, 11020 and 11031) (Perpres 10/2021 art. 2(2)(b), as amended by Perpres 49/2021). The regulation it replaced, Perpres 44/2016, the old negative investment list (Perpres 10/2021 art. 14(b)), worked the other way: it listed what was closed or conditional. Guides that still speak of “the DNI” are describing a repealed list.

A cooperative or small business that grows large in an allocated line may carry on, but must partner with other cooperatives and MSMEs in the allocated line (Perpres 10/2021 art. 5(6)-(7)). The allocation protects the line, not the business’s size, which is why a large villa operator can exist without the line becoming open to foreign capital.

How it fits with the rest

The Perpres decides whether a line is open to a foreign investor. The investment regulation decides what the company must put in — Permen Investasi/BKPM 5/2025. The licensing regulation decides what license the line needs — PP 28/2025. And in Bali, the province has closed OSS to new PMA applications in 18 lines on top of all three. A villa plan has to clear each.

This is commentary, not a translation, and not legal advice. The lampiran are scanned tables; we read them off the official images on JDIH BPK, which remain the authority.

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