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Government to liberalize investment in omnibus bill on job creation
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PT Nestlé Indonesia factory in Karawang West Java. The BKPM recorded investment realization of Rp 809.6 trillion (US$59.1 billion) last year. Of the amount, Rp 423 trillion came from realized foreign direct investment, while the rest came from domestic direct investment. (Handout/Nestle)
T
he government plans to open up almost all business sectors to foreign investment and issue a positive investment list in an omnibus bill on job creation.
According to a draft of the bill obtained by The Jakarta Post, all business sectors will be open to direct investment, except those declared prohibited from such activity or those that can only be handled by the government.
The prohibited areas are narcotics, gambling, chemical weapon industry, ozone-depleting substances, coral extraction and fishing activities for endangered species based on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Meanwhile, the sectors that can only be handled by the government are those related to public services or defense and security, such as primary weapons defense system, state-owned museums, as well as flight and sailing navigation systems.
Further details on the investment will be regulated in a presidential regulation, the bill states.
Read also: Government to issue 'positive investment list' in February, says BKPM boss
Currently, the government issues a Negative lnvestment List (DNI), in which it regulates business sectors that are open, prohibited or open with certain conditions for foreign investment.
