India Desk

Supporting Indian Businesses and Investors Across Indonesia and Southeast Asia

India and Indonesia continue to strengthen economic ties through growing trade, investment, infrastructure development, technology partnerships, and cross-border business expansion. As DFDL’s member firm in Indonesia, Nusantara DFDL Partnership supports Indian businesses, investors, financial institutions, and family-owned enterprises exploring and working on opportunities across Indonesia and the wider ASEAN region.

Advising Indian Businesses in Indonesia and Southeast Asia

Indonesia remains an important destination for Indian businesses. Infrastructure, manufacturing, pharmaceuticals, technology, renewable energy, logistics, financial services, and consumer industries drive significant trade and economic interest. Indian businesses are increasingly making direct investments in Indonesia, aligning with Indonesian entities as strategic partners, executing financing arrangements in Indonesia, and exploring regional operational platforms to establish their business interests in the country.

However, businesses entering Indonesia commonly encounter challenges relating to foreign investment restrictions, licensing requirements, financing structures, employment matters, regulatory compliance, supply chain structuring, land acquisition, local content requirements (TKDN), and sector-specific obligations.

Nusantara DFDL Partnership supports clients on multi-jurisdictional matters involving investment structuring, financing, regional expansion, regulatory compliance, and cross-border commercial operations across ASEAN.

Scope of India Desk Services:

Supporting businesses operating in technology, digital services, telecommunications, e-commerce, data-driven industries, and innovation-focused sectors.

Advising on commercial disputes, regulatory investigations, enforcement matters, and cross-border dispute resolution strategies.

Advising on investment structuring, PT PMA establishment, licensing requirements, and sector-specific regulatory approvals for entering the Indonesian market.

Supporting mergers, acquisitions, joint ventures, strategic investments, and corporate restructuring transactions involving Indonesian and regional businesses.

Advising on infrastructure, manufacturing, renewable energy, logistics, mining, and industrial projects, including project structuring, financing arrangements, concessions, and regulatory approvals.

Advising financial institutions, lenders, investors, and corporate borrowers on financing transactions, security arrangements, debt restructuring, and cross-border financing structures.

Advising on ASEAN–India trade frameworks, including the ASEAN-India Free Trade Agreement (AIFTA), customs regulations, Rules of Origin (ROO), regional supply chain structures, distribution arrangements, and cross-border commercial operations.

Advising on Indonesian employment regulations, expatriate work permits, operational compliance matters, corporate governance, and sector-specific regulatory obligations.

Key Contact

Vinay Ahuja

Partner and Head of the India Desk

Vinay Ahuja advises Indian businesses, investors, and financial institutions on cross-border transactions, foreign investment, banking and finance matters, and regional expansion strategies across Indonesia and Southeast Asia.

Practice Areas: India Desk | Banking & Finance | Corporate & M&A | Infrastructure & Projects | Technology | Cross-Border Investment

SPEAK WITH Vinay Ahuja

Frequently Asked Questions on Investing in Indonesia

What are the primary vehicle options for Indian investors entering Indonesia?

Indian enterprises typically establish operations through a Foreign Investment Limited Liability Company (PT PMA), a joint venture with a local partner, or a regional investment platform, depending on sector-specific ownership restrictions and commercial objectives.

How do ASEAN–India trade frameworks impact supply chain design?

ASEAN–India trade arrangements can influence customs treatment, import-export duties, and Rules of Origin (ROO) requirements. Businesses should evaluate manufacturing, sourcing, and distribution structures carefully to maximise available trade benefits while maintaining regulatory compliance.

What are the key regulatory considerations for Indian pharmaceutical and technology companies?

Pharmaceutical businesses often need to navigate product registration requirements, distribution licensing, and sector-specific regulatory approvals. Technology and digital economy businesses may need to consider data protection requirements, digital platform regulations, e-commerce rules, and sector-specific licensing obligations.

How are cross-border financing transactions and security structures managed?

Cross-border financing transactions in Indonesia often involve both local and overseas lenders. Financing arrangements should be structured with due consideration to Indonesian security requirements, foreign exchange regulations, and reporting obligations to support regulatory compliance and enforceability.

How are employment and expatriate matters typically governed?

Businesses must comply with Indonesian employment regulations, expatriate permit requirements, workforce planning obligations, and industry-specific labour regulations. Early planning is often important when establishing operations that require foreign personnel.

Which sectors are attracting Indian investment in Indonesia?

Indian businesses are increasingly active in manufacturing, pharmaceuticals, infrastructure, renewable energy, technology, logistics, financial services, and consumer-focused sectors. This investment activity is supported by Indonesia’s growing domestic market, industrial development initiatives, energy transition opportunities, and strategic position within regional ASEAN supply chains.

What mechanisms are commonly used for commercial dispute resolution?

Cross-border commercial disputes are often resolved through arbitration rather than court litigation. Common forums include SIAC and BANI, depending on the contractual arrangements and agreed dispute resolution framework.

How does the DFDL network support multi-jurisdictional ASEAN expansions?

Clients expanding across ASEAN can draw on DFDL’s regional network for coordinated support on investments, financing, and regulatory matters.