INDONESIA Trends and Developments Contributed by: Marshall Situmorang, Audria Putri, Fatya Alesi and Irfan Yusuf, Nusantara Legal Partnership
Indonesia’s Investment Outlook: Uncovering Regulatory Developments in the Private Healthcare Sector A. Recent changes to the regulatory framework applicable to private healthcare providers The enactment of Government Regulation No. 28 of 2025 on the Administration of Risk-Based Business Licensing (“GR 28/2025”) marks a new phase in Indo - nesia’s business licensing framework, with the aim of easing licensing procedures and encouraging the growth of investment and business activities. One of the sectors affected by this change is the healthcare sector, which is now also regulated under Minister of Health Regulation No. 11 of 2025 on Business Activ - ity Standards and Product/Service Standards in the Administration of Risk-Based Business Licensing in the Health Subsector (“MoH Reg. 11/2025”). In this article, we discuss the new guidelines for investing in a private clinic in Indonesia in light of these new regulatory changes, which would affect investments in private clinics through both the establishment of new businesses and the acquisition of existing businesses. It is important to understand these recent regula - tory changes, given the increasing interest in foreign investment in this sector, including as a result of the establishment of a special economic zone in Sanur, Bali, and the recent relaxation under the Health Law (Law No. 17 of 2003 on Health, as amended by Law No. 1 of 2026), which opens up opportunities for for - eign doctors to practise and provide health services in Indonesia. B. Investing in private clinics through company establishment 1. Overview of clinics in Indonesia In Indonesia, clinics are generally divided into two cat - egories, as follows: • Primary Clinics ( Klinik Pratama ), namely clinics that provide general medical services only; and • First-Class Clinics ( Klinik Utama ), namely clinics that provide specialised and sub-specialised medi - cal services. Either a Primary Clinic or a First-Class Clinic may be owned by a limited liability company. However, an individual is not permitted to own and operate a
First-Class Clinic (Articles 5-12 of MoH Reg. 11/2025; Appendix of MoH Reg. 11/2025). Under Presidential Regulation No. 10 of 2021 on Investment Business Fields, as amended by Presi - dential Regulation No. 49 of 2021, Primary Clinics are subject to restrictions and are designated for small business and local co-operation. Therefore, foreign investors may only establish or acquire First-Class Clinics. There are several matters that need to be considered by a foreign business before establishing a company intended to serve as the investment vehicle for a First- Class Clinic: • Shareholding structure: at least two shareholders; • Management structure: at least one Director and one Commissioner; • Minimum paid-up capital: at least IDR2.5 billion per business activity, which must be locked up in a company bank account for 12 months; • Minimum investment: more than IDR10 billion; and • Indonesian Standard Business Classification ( Klasi - fikasi Baku Lapangan Usaha Indonesia , or KBLI): KBLI 86105 – Private Clinic Activity. (collectively, “Company Requirements”) 2. Business licences and requirements to establish a First-Class Clinic in Indonesia Before starting business activities for a First-Class Clinic in Indonesia, investors must prepare the rel - evant corporate and technical documentation. Under the Appendix of MoH Reg. 11/2025, the documents include: • establishment documents of the company; • clinic profile; • list of human resources, medicines, and standard operating procedures; • agreement with a third party for the management of medical or non-medical hazardous waste; • letter of commitment to obtain accreditation and implement electronic medical records; and • employment contract for medical personnel.
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