Latest Presidential Decree on Negative Investment List

Gaya Guirous - Medjnoun - 27/05/16

 

Latest Presidential Decree on Negative Investment List

 

On the 24th May 2016, the Indonesian President Joko Widodo has signed Presidential Decree no. 44 year of 2016. This decree regulate which business sector is in the negative investment list. With this decree, investors will have a clear guideline in which sector they are allowed to invest. According to the Head of Investment Agency (BKPM) Franky Sibarani, this step will allow the government to achieve this year’s investment target of IDR 594.8 trillion. In total there are 71 business sectors closed for foreign investment. Below is the table of some of the business sector.

 

Business Sector

Foreign Investment Allowance

Explanation

Seeding of tropical fruits

30%

 

Horticulture of fruits and decorative plants

30%

 

Seeding of staple crops

49%

 

Horticulture of staple crops

49%

 

Port services

49%

 

Domestic air transport

49%

 

Charter and non-chartered international air transport

49%

 

Distributor of medical equipment

49%

 

Telecommunication and Internet services provider

67%

 

Hospitals

67%

ASEAN countries may invest up to 70% in east Indonesia except Makassar and Manado.

Department store with surface area 400 - 2,000 m2

67%

Must be located inside a mall/shopping centre.

Museums

67%

ASEAN countries may invest up to 70%.

Catering

67%

ASEAN countries may invest up to 70%.

Hotels, Motel, Golf Arena

67%

ASEAN countries may invest up to 70% except for hotels.

Travel Agents

67%

ASEAN countries may invest up to 70%.

Entertainment, MICE & Sport Centres

67%

ASEAN countries may invest up to 70%.

Air freight logistic services

67%

 

Health Insurance

80%

 

Pharmacy

85%

 

Plantation with area more than 25 hectares (cane, tobacco, cotton, pepper, cloves, rubber, coconut and palm oil)

95%

 

Drinking Water

95%

 

Car & Motorcycle Dealers

Not Allowed

 

Automotive spare parts

Not Allowed

 

Supermarket with surface area less than 1.200 m2

Not Allowed

 

Minimarket with surface area less than 400 m2

Not Allowed

 

Textile, footwear, electronic and children’s toy retailers

Not Allowed

 

Oil & Gas onshore drilling

Not Allowed

 

Power plant with less than 1MW

Not Allowed

 

Forest products

Not Allowed

 

Sand Quarrying

Not Allowed

 

Fishing

Not Allowed

Special license required from the Ministry of Maritime Affairs

Press/media (newspaper, magazine and bulletin)

Not Allowed

 

First-aid clinics

Not Allowed

 

Advertisement

Not Allowed

ASEAN countries may invest up to 51%

 

 

The European Union is the 2nd source of FDI in Indonesia and France is the 10th biggest investor in Indonesia in 2015. On the opposite side Indonesia is ranked on the 53th position on the Foreign Direct Investments origins in European Union.

Download: No downloadable files present
Photo:
No downloadable photos present
Comments
About us
Business France is the national agency supporting the international development of the French economy, responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France. It promotes France’s companies, business image and nationwide attractiveness as an investment location, and also runs the VIE international internship program. Founded on January 1, 2015 through a merger between UBIFRANCE and the Invest in France Agency, Business France has 1,500 personnel, both in France and in 70 countries throughout the world, who work with a network of public- and private-sector partners. Business France’s three missions are: - Fostering export growth by French businesses. - Promoting and facilitating international investment in France. - Promoting France’s companies, business image and nationwide attractiveness as an investment location.   These missions incl

READ MORE

Facebook
Press area & Media Gallery