Below is a list with tagged columns and company profiles.

Today's Headlines Foreign Investment

  • Foreign Investors Sell Indonesian Assets if Prabowo Subianto is Elected

    A survey of the Deutsche Bank, one of the world's leading financial service providers, showed that the foreign business community will not be content if Prabowo Subianto takes over the presidential seat from incumbent president Susilo Bambang Yudhoyono. According to this survey, 56 percent of respondents are planning to sell Indonesian assets if the electorate chooses Subianto as next president in the election that is scheduled for 9 July 2014. About 13 percent answered to buy Indonesian assets in the same scenario.

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  • More Room for Foreign Investment in Indonesia's Insurance Sector

    Following the enactment of the ASEAN Economic Community (AEC) in 2015, the Financial Services Authority (OJK) will allow foreign insurance corporations to open a branch office in Indonesia. The AEC will transform the ASEAN region into a region with free movement of goods, services, investment, skilled labour, as well as a freer flow of capital. Currently, foreign insurance corporations are prohibited from opening a branch in Indonesia unless it is in the form of a joint venture company with a 80 percent foreign ownership limit.

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  • Indonesia Investments' Newsletter of 2 March 2014 Released

    On 2 March 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as the G20 meeting in Sydney, foreign investment, Inflation, rupiah exchange rate performance, economic growth, ANTV's IPO, natural disasters, the presidential election, and more.

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  • European Union Eager to Increase Foreign Direct Investment in Indonesia

    Colin Crooks, Deputy Head of the European Union delegation to Indonesia, Brunei Darussalam and ASEAN, said that Europe's businesses are eager to invest in Indonesia. However, the European Union (EU) hopes that several issues that are blocking the Indonesian economy (particularly related to trade and investments) from growing further are dealt with. Crooks pointed at EuroCham's position papers, which discuss bottlenecks to Indonesia's investment climate and provides recommendations for its improvement.

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  • BKPM: Japan Replaced Singapore as Biggest Investor in Indonesia in 2013

    BKPM: Japan Replaced Singapore as the Biggest Investor in Indonesia in 2013

    Mahendra Siregar, Chairman of the Indonesia Investment Coordinating Board (BKPM) said that Japan has replaced Singapore as the largest investor in Indonesia. In 2013, Japan invested USD $4.7 billion in Southeast Asia's largest economy, particularly in the automotive sector due to the sector's promising outlook as demand for cars among Indonesia's expanding middle class grows strongly. Singapore, which was the largest investor in Indonesia between 2010 and 2012, fell to second place with USD $4.6 billion worth of investments.

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  • India's Tata Steel Plans to Enter Indonesia with Downstream Products

    India's Tata Steel Plans to Enter Indonesia with Downstream Products

    Tata Steel Limited, the Indian multinational steel producer, recently announced its ambition to penetrate the Asia-Pacific region, including Indonesia. Although it remains unclear whether the company intends to establish a factory in Indonesia, an official of the company said that Tata Steel wants to enter Indonesia with downstream products in 2014 or 2015 as it sees potential in Southeast Asia's largest economy and aims to improve profitability by increasing efficiency in the operatives in the Asia-Pacific.

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  • Larger Share of Foreign Ownership in Indonesia's Infrastructure Projects

    Larger Share of Foreign Ownership in Indonesia's Infrastructure Projects

    The Indonesian government wants to enlarge the role of foreign participation in the country's infrastructure development. Through a proposed revision of Presidential Regulation No 36/2010 regarding the Negative Investment List (Daftar Negatif Investasi), foreign investors will have more room for investing in Indonesia's infrastructure sector within public-private partnership schemes (PPP projects). The Indonesian government needs more foreign participation as the current state of the country's infrastructure is inadequate.

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  • More Foreign Investment Allowed in Airports, Power Plants and Toll Roads

    The government of Indonesia announced on Tuesday (24/12) that increased levels of foreign direct investments will be allowed in the country’s airports, pharmaceutical industries, power plants, and toll roads. The revision of Indonesia's Negative Investment List (Daftar Negatif Investasi), the list which stipulates which sectors are closed (or partly closed) to foreign investment, is conducted in order to attract more foreign investments from abroad as a means to combat slowing economic growth in Southeast Asia's largest economy.

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  • Realized Investment in Indonesia in 2013 Will Exceed Target of the BKPM

    Head of the Indonesia Investment Coordinating Board (BKPM), Mahendra Siregar, is optimistic that total realized investments in Indonesia will exceed the target that is set for this year. The BKPM, a government institution, aims for investments worth of IDR 390 trillion (USD $32.5 billion) in 2013 and IDR 470 trillion (USD $39.2 billion) in 2014. Siregar is optimistic because many investors, particularly from Japan and the USA, are committed to engage in business expansion at the end of this year as well as next year.

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  • World Bank: Indonesia Improves in the 'Doing Business 2014' Ranking

    On Friday (25/10), the World Bank released its 'Doing Business 2014' report in which it "ranks countries on their overall 'ease of doing business', and analyzes reforms to business regulation - identifying which economies are strengthening their business environment the most." In total 189 countries were analyzed. Indonesia, traditionally characterized by a complex and difficult investment environment, managed to climb 8 places in the ranking. Southeast Asia’s largest economy rose from number 128 to 120 in the 2014 edition.

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Latest Columns Foreign Investment

  • New Foreign Investment Regulation Issued By BKPM

    New Foreign Investment Regulation Issued By BKPM

    Recently, the Indonesian Investment Authority (BKPM) issued Regulation no. 13 of 2017 regarding Guidelines and Procedures for Investment Licensing and Facilities (13/2017 Regulation). The 13/2017 Regulation is of great importance for foreign investors that currently have or wish to establish a foreign investment company in Indonesia. The regulation regulates the investment requirements for Foreign Limited Liability Companies (PT PMA) and several types of Foreign Representative Offices. In this column we discuss the licensing system for foreign capital investment.

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  • Divestment Procedure for Mining Companies Revised

    Divestment Procedure for Mining Companies Revised

    Recently, the Ministry of Energy and Mineral Resources (Ministry) issued regulation number 9/2017 on Procedures for Divestments and Mechanisms to Determine the Divested Share Price for Business Active in the Minerals and Coal Sector (New Regulation). The New Regulation replaces Ministry regulation number 27/2013. In this column we discuss the impact of the New Regulation on foreign investors in Indonesia.

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  • Construction Business License Foreign Investment Limited Liability Companies

    Construction Business License for Foreign Investment Limited Liability Companies (PT PMA)

    Recently the Minister of Public Works (Minister) issued a new regulation no. 03/PRT/M/2016 regarding the Technical Guidelines for Granting a Foreign Investment Construction Business License (New Construction Regulation). The New Construction Regulation sets implementing guidelines on how to obtain a construction business license for foreign investment limited liability companies (PT PMA), including the documents required to be submitted and the obligations of the construction PT PMA.

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  • Fewer Restrictions on Trading Companies under New Negative Investment List

    Fewer Restrictions on Trading Companies under New Negative Investment List

    Distributors and other trading companies were highly protected against foreign investors under the old negative investment list based on Presidential Regulation No. 39/2014 (Old Regulation). The new negative investment list, based on Presidential Regulation No. 44/2016 on the List of Business Fields Which Are Closed and Conditionally Open to Investment (New Negative Investment List), now sets less stringent restrictions for foreign investors for these fields of business. In this column we discuss the changes for trading companies based on the New Negative Investment List.

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  • Foreigners Need Rep Office or JV for Construction Work in Indonesia?

    Foreigners Need Rep Office or JV for Construction Work in Indonesia?

    Indonesia's economic growth in the first quarter of 2016 was rather disappointing at 4.92 percent (y/y), below analyst estimates that averaged around 5 percent (y/y), due to slowing household consumption, private investors being in a wait-and-see mode, and relatively weak government spending (a usual phenomenon at the year-start). Indonesia's construction sector also grew weakish in Q1-2016. However, the construction sector still has good prospects in the years ahead on the back of the government's infrastructure projects.

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  • New Negative Investment List 2016 - Preview of Changes

    New Negative Investment List 2016 - Preview of Changes

    The new negative investment list 2016 is not yet issued by Indonesian President Joko Widodo. However along with the launch of the tenth economic policy package, the government is currently processing the new draft of this list. Although not yet issued, in this column we discuss the most likely changes to be implemented in the new negative investment list 2016. The current draft regulation removes 35 business fields form the negative investment list. Besides that, more business fields are reserved for small and medium sized companies (local companies).

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  • Company Establishment Requirements at BKPM Reregulated

    Company Establishment Requirements at BKPM Reregulated

    Company establishment in Indonesia by foreigners can be done through a specific limited liability company for foreign investors. Such company is known as a PT PMA. A PT PMA is subject to more stringent company establishment requirements as compared to local limited liability companies (known as PT). In the column of this week we discuss the requirement to invest more than 10 billion Indonesian rupiah (currently equivalent to approx. USD $750,000), the implementation thereof by foreign investors, and the consequences for not reaching the required investment amount.

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  • Horticulture Sector Indonesia: Flexible toward Foreign Ownership Cap

    Horticulture Sector Indonesia: Flexible toward Foreign Ownership Cap

    The Indonesian government's decision to limit foreign ownership in the horticulture sector to a maximum of 30 percent (through Law No. 13/2010 on Horticulture), from 95 percent previously, continues to cause a polemic as such protectionism may be a big disadvantage to the development of Indonesia's horticulture sector. Moreover, the law works retroactively implying that existing companies owned by foreign investors need to divest their majority ownership interests. In Law No. 13/2010 foreigners were given four years to divest their shares.

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  • New Investment Regulation Foreign Investors Indonesia (2/2)

    New Investment Regulation Foreign Investors Indonesia (2/2)

    In our previous column we discussed the changes put through by the Indonesia Investment Board (known as “BKPM”) with regard to the principle license. The principle license is the primary license required for foreign investors to start a company in Indonesia. In this week’s column we discuss BKPM regulation number 15 of 2015 on the Guidelines and Procedures for Obtaining Investment Licenses and Non-Licenses (“New Investment Regulation”). Together with the previously discussed BKPM regulation the New Investment Regulation aims to simplify investment procedures in Indonesia (both foreign and domestic).

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  • Shares and Capital in a Limited Liability Company in Indonesia

    Shares and Capital in a Limited Liability Company in Indonesia

    The general provisions regarding shares in an Indonesian limited liability company (PT for local companies and PT PMA for foreign companies in Indonesia) are regulated in Indonesian Law number 40 of 2007 concerning Limited Liability Companies (Company Law). The Company Law regulates the minimum authorized capital and paid-up capital, and stipulates procedural rules related to the purchase, ownership and sales of shares.  In this column we discuss the general rules governing shares of a limited liability company in Indonesia.

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