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Exa: balivisa.co
Exa: balivisa.co
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppIndonesia's green energy sector has emerged as a significant destination for foreign direct investment, underpinned by a national commitment to expand
Indonesia's green energy sector has emerged as a significant destination for foreign direct investment, underpinned by a national commitment to expand renewable capacity and reduce reliance on fossil fuels. However, access for foreign investors is not open-ended — it is governed by a precise and multi-layered regulatory architecture that has been substantially updated since 2023.
At the foundation is Perpres No. 76 Tahun 2024, which amends the earlier Perpres No. 70 Tahun 2023. This Presidential Regulation governs the allocation of land and territorial rights in the context of investment restructuring, and explicitly covers sectors under the authority of the Ministry of Energy and Mineral Resources. Any foreign-owned company (PT PMA) seeking to acquire land or concession rights for an energy project must operate within this framework, which sets defined timelines and procedural mechanisms.
Foreign personnel working in the energy sector face specific quota constraints under Kepmenaker No. 228 Tahun 2019. The regulation lists positions that may be filled by foreign nationals (TKA) on a sector-by-sector basis. Under KBLI 35 — which covers electricity, gas, steam, and hot water supply — a maximum of 40 positions are open to foreign workers. The geothermal sub-sector (KBLI 09) is subject to a separate regime permitting 15 technical and managerial roles, with exceptions carved out for technology transfer purposes. Any PT PMA bringing foreign expertise into the energy sector must submit a RPTKA — a formal foreign worker utilization plan — under PP No. 34 Tahun 2021, and approval of this plan is a prerequisite for obtaining a work visa (E23).
For investors who are not employed but are committing capital, two regulatory instruments are now directly relevant. Permenkumham No. 22 Tahun 2023 and its amendment Permenkumham No. 11 Tahun 2024 establish the conditions under which foreign investors can obtain long-term residency through the Golden Visa program (KITAS E28B). A five-year Golden Visa requires a minimum investment of USD 2,500,000; a ten-year variant requires USD 5,000,000. Crucially, the committed capital must be demonstrably deployed within 90 days of entry into Indonesia.
A significant procedural update came with Permenimipas No. 5 Tahun 2025, which removes the requirement for a local Indonesian guarantor (sponsor) for foreign investors. In its place, investors must deposit a formal Immigration Guarantee (Jaminan Keimigrasian) tied to their corporate commitments. This change simplifies the entry pathway for well-capitalized foreign investors operating independently of a local partner. At the Bali provincial level, no verified regional regulations (Perda or Pergub) specifically govern green energy investment or its zoning — national OSS procedures and central immigration regulations apply.
Green energy in Indonesia is not a deregulated frontier — it is a tightly sequenced compliance exercise. The regulatory updates of 2023–2025 represent genuine progress: the removal of the local guaran
tor requirement under Permenimipas No. 5/2025 is a real win for investors who want to move without a local partner, and the Golden Visa pathway provides long-term residency certainty for those committ
ing serious capital.
That said, the 90-day capital deployment window is not a formality. We have seen clients underestimate the operational complexity of proving capital commitment within that timeframe, particularly when dealing with Indonesian banking requirements and OSS registration timelines. Energy sector investments also carry an additional layer: the RPTKA approval for foreign workers must be secured before visas are issued, meaning staffing decisions need to be baked into the pre-entry planning phase, not treated as a post-arrival administrative task.
Bali specifically has no dedicated green energy investment zone or local regulatory advantage at this time. Investors targeting Bali as a base — rather than as a project site — should structure their PT PMA around the national OSS framework and plan for immigration compliance at the central government level.
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