Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal

UU 25/2007, the Investment Law, is the foundational statute governing both foreign (PMA) and domestic (PMDN) investment in Indonesia. It establishes BKPM as the lead investment authority, defines the Indonesian limited-liability vehicle (PT) as the only allowed legal form for direct investment, and sets out the rights and obligations of investors. Key principles include: equal treatment of foreign and domestic investors except where law expressly provides otherwise (Article 6); investor rights to repatriate profits, capital, and assets in foreign currency (Article 8); and the right to obtain land titles, foreign-worker permits, and tax facilities under separate implementing regulations. Article 12 provides that investment business fields are open unless explicitly closed or conditioned by Presidential Regulation — the legal hook for Pres. Reg. 10/2021 (BUPM). Substantially amended by UU 11/2020 (Cipta Kerja / Job Creation Law) which streamlined licensing into the OSS-RBA system. Together with the Job Creation Law, this is the constitutional-tier reference cited in any Indonesian investment dispute.