This chapter examines investment promotion and facilitation policies in place in Indonesia. It analyses the institutional framework for investment promotion and facilitation, with a particular emphasis on the role and activities of BKPM, Indonesia’s investment promotion focal point, which it benchmarks against other agencies in the world. It highlights key reforms and measures implemented by the government to improve the business environment and facilitate the process for incoming investors as well as to attract foreign investment. It also examines the tax regime and the role of tax incentives for investment in support of foreign investment promotion. The chapter identifies remaining challenges and proposes recommendations to address them.