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Indonesia opens 35 sectors to foreigners, closes 20 others
âShall we begin?: Coordinating Economic Minister Darmin Nasution (right) talks to Cabinet Secretary Pramono Anung (left) before a press conference on the 10th economic policy package at the State Palace in Jakarta, on Feb
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âShall we begin?: Coordinating Economic Minister Darmin Nasution (right) talks with Cabinet Secretary Pramono Anung (left) before the press conference on the 10th economic policy package at the Presidential Palace in Jakarta, on February 11. The latest package includes the revised negative investment list (DNI). (Tempo/Aditia Noviansyah) (right) talks with Cabinet Secretary Pramono Anung (left) before the press conference on the 10th economic policy package at the Presidential Palace in Jakarta, on February 11. The latest package includes the revised negative investment list (DNI). (Tempo/Aditia Noviansyah)
'Shall we begin?: Coordinating Economic Minister Darmin Nasution (right) talks to Cabinet Secretary Pramono Anung (left) before a press conference on the 10th economic policy package at the State Palace in Jakarta, on Feb. 11. The latest package includes the revised negative investment list (DNI). (Tempo/Aditia Noviansyah)
Thirty five industrial sectors have been removed from the negative investment
list (DNI), while 20 others have been added. The measures are stipulated in the
10th economic policy package released on
Thursday.
Coordinating Economic Minister Darmin Nasution said the policy was aimed at boosting
investment, both domestic and foreign direct investment (FDI), while providing
protection to small and medium enterprises (SMEs).
"It means that 100 percent foreign ownership is allowed in the 35 sectors
that have fully opened up to FDI," said Darmin during a press conference
at the State Palace in Jakarta on
Thursday.
The 35 sectors include cold storage, sports centers, film processing labs, crumb
rubber industry, warehousing, tourism, e-commerce with a marketplace value
above Rp 100 billion, toll road operators, telcom device certification,
non-hazardous waste management and raw medicine materials.
Plantation firms with more than 25 hectares of land integrated with a
processing plant will also be allowed foreign ownership of up to 95 percent. Seven
types of businesses, including leasing companies, will be allowed 85 percent
ownership.
Businesses allowed up to 67 percent ownership include job training, travel
bureaus, golf course developers, flight logistics supporting businesses, health
care, private museums, catering, convention center and exhibition, consulting
and construction businesses with contract values above Rp 10 billion, as well
as telcom network providers with integrated telcom services.
The seven sectors allowed 51 percent foreign ownership include natural tourism
management. Meanwhile, 32 sectors were still pegged with 49 percent maximum
foreign ownership such as acupuncture, land transportation and high voltage
electric installation.
"This policy is not liberalization but an effort to modernize our economy
by encouraging SMEs and national companies to improve creativity, innovation
and technology," Cabinet Secretary Pramono Anung said.
On the new list, 20 industrial sectors were closed or
restricted sectors for FDI, added by four new sectors from previously 16
restricted sectors under the preceding 2014 DNI regulation.
"In the revised DNI, we have added utilization of natural coral for
aquariums, souvenirs and accessories. It is closed to any kind of investment
for environmental protection," Darmin added.
The remaining 19 industrial sectors, he continued, were reserved for SMEs,
including pre-design and consulting services, architectural design services and
architectural services. In addition, no SMEs were open to foreigners, along
with businesses with investment value of less than Rp 10 billion. (ags)
