Government Priority Sectors 2024-2029

Priority Investment Sectors: Maximum Government Support & Incentives

Indonesia's government designates strategic sectors for accelerated development, offering foreign investors enhanced tax incentives, expedited licensing, infrastructure support, and 100% ownership in priority industries. Align with national development goals for maximum ROI.

Top 10 Priority Investment Sectors

Government-backed industries with highest investment potential

1

Manufacturing & Industry

Growth

6.2% CAGR

Market/Investment

$120B+ (2020-2024)

Key Opportunities:
  • Electric Vehicle (EV) & Battery manufacturing
  • Electronics & semiconductor assembly
  • Pharmaceutical & medical devices
  • Textile & garment (export-oriented)
  • Food & beverage processing
Incentives: Tax holiday 20 years, import duty exemption, SEZ benefits
Explore Sector Details
2

Digital Economy & Technology

Growth

20% CAGR

Market/Investment

$70B market (2023)

Key Opportunities:
  • E-commerce platforms & marketplaces
  • Fintech & digital payments
  • Cloud computing & data centers
  • Edtech & e-learning platforms
  • Healthtech & telemedicine
Incentives: 100% foreign ownership, tax allowance, R&D super deduction 300%
Explore Sector Details
3

Renewable Energy

Growth

8.5% CAGR

Market/Investment

$25B needed (2024-2030)

Key Opportunities:
  • Solar PV power plants
  • Geothermal energy (40% global potential)
  • Hydropower projects
  • Biomass & waste-to-energy
  • Wind energy (coastal/offshore)
Incentives: Tax holiday 15 years, accelerated depreciation, feed-in tariffs
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4

Healthcare & Pharmaceuticals

Growth

10% CAGR

Market/Investment

$8B market (2024)

Key Opportunities:
  • Private hospitals & specialty clinics
  • Pharmaceutical manufacturing
  • Medical device production
  • Diagnostic laboratories
  • Healthcare IT systems
Incentives: Tax allowance, import duty exemption equipment, 100% ownership
Explore Sector Details
5

Food & Beverage

Growth

7.8% CAGR

Market/Investment

$45B market (2024)

Key Opportunities:
  • Food processing & packaging
  • Halal food production
  • Beverage manufacturing
  • Cold chain logistics
  • Agricultural technology
Incentives: Tax allowance, VAT exemption in SEZ, export support
Explore Sector Details
6

Tourism & Hospitality

Growth

12% CAGR

Market/Investment

$20B target (2024-2029)

Key Opportunities:
  • Hotels & resorts (priority destinations)
  • MICE facilities (convention centers)
  • Ecotourism & adventure tourism
  • Cruise terminals & marinas
  • Tourism infrastructure
Incentives: Tax holiday in priority zones, land facilitation, 100% ownership
Explore Sector Details
7

Infrastructure

Growth

5.5% CAGR

Market/Investment

$400B (2020-2024)

Key Opportunities:
  • Toll roads & highways
  • Ports & airports (PPP)
  • Power plants & transmission
  • Water treatment facilities
  • IKN (new capital) development
Incentives: Government guarantees, land acquisition support, tax benefits
Explore Sector Details
8

Logistics & Transportation

Growth

9% CAGR

Market/Investment

$15B market (2024)

Key Opportunities:
  • Warehousing & distribution centers
  • Cold chain logistics
  • Last-mile delivery networks
  • Freight forwarding
  • Maritime & aviation logistics
Incentives: 100% foreign ownership, SEZ benefits, import duty free
Explore Sector Details
9

Creative Economy

Growth

8.2% CAGR

Market/Investment

$12B contribution (2023)

Key Opportunities:
  • Film & content production
  • Gaming & esports
  • Fashion & design
  • Animation & VFX
  • Digital content platforms
Incentives: Tax allowance, creative hubs, IP protection support
Explore Sector Details
10

Financial Services

Growth

6.5% CAGR

Market/Investment

$85B market (2024)

Key Opportunities:
  • Digital banking & neobanks
  • Insurance & insurtech
  • Asset management
  • Venture capital & PE
  • Payment gateways
Incentives: Progressive ownership liberalization, fintech sandbox
Explore Sector Details

Investment Incentives by Priority Sector

What each sector receives from government

Sector Tax Holiday Tax Allowance Import Duty Free Special Benefits
Manufacturing Up to 20 years SEZ access, bonded zones
Technology & Digital 10-15 years ✓ + 300% R&D 100% ownership, data center support
Renewable Energy 15-20 years Feed-in tariffs, PPP guarantees
Healthcare 10 years ✓ Equipment 100% ownership clinics
Tourism 5-15 years Land facilitation, visa-free zones

How to Choose Your Priority Sector

Strategic considerations for sector selection

Market Demand Analysis

Evaluate local demand, import dependence, growth projections. Our market research provides data-driven insights.

Competitive Advantage

Align with Indonesia's competitive strengths: resources, labor, location, or market access.

Government Support Level

Priority sectors receive maximum incentives, fastest approvals, and active government facilitation throughout investment lifecycle.

Priority Sector Investment Impact (2020-2023)

$185B

FDI in Priority Sectors

2.4M

Jobs Created

65%

Of Total FDI

8.2%

Average ROI (Priority vs 5.1% Non-Priority)

Our Priority Sector Investment Services

End-to-end support for sector entry

Sector Feasibility

Market analysis, competitor mapping, regulatory review

Incentive Application

Tax holiday, allowance, duty exemption applications

Company Setup

PT PMA registration, licensing, sector-specific permits

Operational Support

HR, accounting, compliance, ongoing facilitation

Ready to Enter a Priority Sector?

Expert guidance on sector selection, incentive maximization, and market entry

Free feasibility assessment included

consultant gaivo.co.id
Nafa Dwi Arini
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