Building on the achievements since the first OECD Investment Policy Review of Indonesia completed in 2010, this 2nd Review presents an assessment of the investment climate in Indonesia to support the government in its ongoing reform efforts. Based on the OECD Policy Framework for Investment, the Review identifies challenges and opportunities and provides recommendations to increase competitiveness, support growth and ensure investment contributions are widely shared and environmentally sustainable. Chapters cover trends and impact of foreign direct investments (FDI), re-thinking the FDI regime, investor protection and dispute resolution, promoting and enabling responsible business conduct, investment promotion and facilitation, and investment policy and regional development in decentralised Indonesia. The Review places great emphasis on measures to build a sound, transparent and responsible investment environment to support a resilient economic recovery from the COVID-19 pandemic.