Chairman of the Indonesia Investment Coordinating Board (BKPM) Mahendra Siregar said on Thursday (24/04) that Indonesia's Negative Investment List (Daftar Negatif Investasi), which stipulates which sectors in the Indonesian economy are open to foreign investment as well as the percentage of foreign ownership permitted, has been revised. The list was revised through a Presidential Decree earlier this week. The revision means that the limit of foreign ownership in several sectors will be raised.
The revision of Indonesia's Negative Investment List of Indonesia has been conducted in order to attract more foreign investment in Southeast Asia's largest economy by making the country more competitive.
Some important revisions include:
• After implementation of the revised list, foreign investors will be able to control up to 85 percent of a pharmaceutical business in Indonesia, up from the previous maximum of 70 percent
• In the ecotourism industry foreign ownership is allowed to increase up to 70 percent (from a maximum of 49 percent previously)
• Foreign ownership in Indonesia's telecommunications sector will be limited to 65 percent. However, foreign companies will be allowed to own 85 percent of venture capital firms, up from 80 percent previously
• The government will also open up opportunities in the country's advertising and film business to Southeast Asian investors, as part of preparations for the implementation of the Asean Economic Community (AEC) at the end of 2015. This community will transform the ASEAN region into a region with free movement of goods, services, investment, and skilled labour, as well as a freer flow of capital
On the other hand, Siregar also revealed that the government will lower the limit of foreign ownership in some sectors. For example, in onshore and offshore oil and gas drilling services and operation and maintenance services, foreign ownership will be reduced to 75 percent (from 95 percent previously).