The new regulations would open up sectors previously closed for foreign investors in by revising the negative investment list, streamline all business licenses under Investment Coordinating Board (BKPM) and relax taxes for corporate income, expatriates, dividends – among others.

More efforts in deregulations include revoking at least 40 ministerial regulations and relaxing building permit (IMB) and environment impact study (Amdal) requirements.

“It really shows that the government has [responded] to the complaints of business people [...],” Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman for monetary, fiscal and public policy Raden Pardede said.

Indonesia has struggled to attract more investment into the country amid sluggish economic growth that reaches 5.02 percent in the third quarter, the slowest pace in more than two years.

The growth of investment, which accounts for about a third of the country’s gross domestic product, plunged to 4.21 percent from 6.96 percent recorded in the same period last year, Statistics Indonesia data show.

“We have to be open and utilize the global value chain as best as we can. So, we need to choose which investments that are more beneficial to us,” Raden said. “It’s about how we lure more investments and cooperate with foreign investors on transfers of knowledge.”