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Jofie Yordan · · 6 min readIndonesia’s new VC rules struggle to win foreign buy-in
Not a single foreign VC firm has complied with Indonesia’s new licensing rules even after the first deadline passed, according to Tech in Asia’s sources.
In December 2025, the Financial Services Authority (OJK) introduced POJK 41/2025, which requires foreign VC firms with representative offices in the country to obtain OJK approval. Existing firms were given six months to comply.
Image credit: Ulla
To get the approval, VC firms must appoint a local country head, submit three years of audited financial statements, disclose their investment plans in Indonesia, and provide a business plan for their first year of operations, among other requirements.
In March 2026, OJK held a briefing to explain the new regulation to the VC firms. The following month, it sent a follow-up email to around 30 firms. The six-month compliance deadline then ended in June.
Most firms are still trying to interpret the regulation, while some have said outright that they do not intend to comply. This adds to concerns over the country’s waning appeal to overseas investors and its startup ecosystem.
More obligations, few incentives
One regional investor tells Tech in Asia that it has yet to comply with the regulation because it sees “no benefit” in doing so. Instead, the firm believes the requirements impose additional costs without offering any advantages.
The investor points out that this regulation comes at one of the slowest fundraising periods Indonesia has seen in years.
The ecosystem has faced a series of setbacks, including the collapse of unicorn eFishery and the prosecution of Gojek founder Nadiem Makarim and executives from state-backed VC firms MDI Ventures and BRI Ventures.
Image credit: Ulla
“Deals are already quiet in Indonesia,” the source, requesting anonymity, says. “There aren’t many companies that make investors say, ‘We have to invest there.’ So when the market is already difficult, adding more compliance doesn’t make commercial sense.”
The cost of uncertainty
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The country’s latest VC rules add fresh friction to an already challenged startup ecosystem. Foreign investors are questioning what comes next.
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