Investment Policy Monitor
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
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UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Indonesia - New requirements for E-commerce companies
Indonesia
New requirements for E-commerce companies
19 May 2020On 19 May 2020, the Indonesian Ministry of Trade (“MOT”) has issued a new regulation, MOT Regulation No. 50 of 2020 regarding Provisions on Business Licensing, Advertising, Guidance and Supervision of Businesses Trade through Electronic Systems. This regulations will take effect on 19 November 2020. Some of the key points include among others: - The regulation divides e-commerce business actors into the following categories: 1. E-Commerce Organizers (Penyelenggara Perdagangan melalui Sistem Elektronik or “PPMSE”), both domestic and foreign; 2. Merchants, both domestic and foreign; and 3. Intermediary Services Organizers (Penyelenggara Sarana Perantara or “PSP”), both domestic and foreign.
Parties in each category must satisfy certain prerequisites before engaging in the relevant e-commerce activities, as follows:
- Domestic PPMSE’s must obtain an E-Commerce Trade Business License (Surat Izin Usaha Perdagangan melalui Sistem Elektronik or “SIUPMSE”).
- Foreign PPMSE’s are required to appoint a Foreign Trade Company Representative Office in the field of Trade through Electronic System (Kantor Perwakilan Perusahaan Perdagangan Asing di bidang Perdagangan melalui Sistem Elektronik or “Representative Office”) upon the fulfillment of certain criteria.
- Domestic e-commerce merchants must obtain the appropriate Trade Business License for their activities. If a domestic merchant has its own e-commerce facility, such as a website or online platform, it must procure a SIUPMSE.
- Foreign merchants must register their valid business license from their country of origin with a domestic PPMSE with electronic communication facilities for foreign merchants, which, in turn, will store the submitted registration data.
- PSPs generally are required to obtain a SIUPMSE. However, a PSP may be excluded from this requirement if (i) it is not a direct beneficiary of the e-commerce transactions or (ii) is not directly involved in the contractual relationship between the parties conducting e-commerce transactions.
The regulation requires e-commerce business actors to support government programs by prioritizing locally produced goods and services, increasing the competitiveness of local goods and services, and, specifically for domestic PPMSEs, providing space to promote locally produced goods and services.
Foreign PPMSEs that meet certain criteria are required to appoint a Representative Office. This requirement applies to foreign PPMSEs that have completed more than one thousand transactions with consumers within a year and/or have delivered more than one thousand packages to consumers within a year. One Representative Office may only represent one foreign PPMSE. A Representative Office can act on behalf of the foreign PPMSE only with respect to consumer protection matters, the provision of guidance to increase the competitiveness of locally made products and dispute resolution matters.
Nature of measure:
- Entry restriction
Type:
- Entry and establishment (Approval and admission - other)
- Treatment and operation (Operational conditions)
Industry:
- Services (Other service activities)
Inward FDI:
NoOutward FDI:
NoSources:
- Akset, A New Regulatory Framework for Indonesia’s E-Commerce Sector: Licensing Requirement and Threshold of Foreign E-commerce Business, https://aksetlaw.com/news-event/newsflash/a-new-regulatory-framework-for-indonesias-e-commerce-sector-licensing-requirement-and-threshold-of-foreign-e-commerce-business/, 29 Jun 2020
- Lexology, Indonesia Introduces New Requirements for E-Commerce Companies, https://www.lexology.com/library/detail.aspx?g=e30b84d2-d67c-458e-b839-b19c3a9a0984, 18 Jun 2020
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
-
UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
Share





Latest publications
