Installation is forbidden by system policy

On a Windows Server 2012 R2 RDS (Remote Desktop Services) server I suddenly had a problem installing an update of PDF XChange Pro. I got a message like “Installation is forbidden by system policy”.

I tried the “Set the RDS in install mode” by opening the CMD and type “change user /install“. But still no chance of installing the MSI for the software. Also some Office updates started to fail to install.

After some research on different forums, I found the solution:

  1. Go to START > RUN > Regedit
  2. Browse the registry to HKLM\Software\Policies\Microsoft\Windows\Installer
  3. Change the REG_WORD-value of DisableMSI to 0 (mine was set to 2)
  4. Close the registry editor and try to install the program/update again (it now installs)

I hope it helps someone to.