The Indonesian government is reinforcing its strategy of foreign investment attractiveness in 2016

Gaya Guirous-Medjnoun - 17-févr.-2016 09:30:19
The Indonesian Governement choosed to enhance its foreign investment attractivements with a new update of the negative investment list release in february 2016.  " The list is developed by the Investment Coordinating Board in coordination with the other line ministries and the Coordinating Ministry for Economic Affairs. The revision removes the foreign ownership cap on over 30 subsectors. Of note, foreign investors can now own a 100 percent stake in some businesses in the tourism industry and web-based marketplaces with more than USD 7.45 million in capital. One other important inclusion is the liberalization of business services, including distribution and warehousing services, from 33 percent to 67 percent. This change was likely the product of a strong advocacy effort by foreign trade associations and embassies in Indonesia. Allowing 100 percent foreign ownership means that companies operating in these sectors will no longer be required to have local partner. Coordinating Minister for Economic Affairs Darmin Nasution justified keeping foreign ownership limited in certain sectors as a means to create jobs and improve the capacity of Indonesian companies." Business sector Before After Explanation Cold storage 33-67% 100%   Operational and management business of toll roads 95% 100%   Testing laboratories 95% 100%   Tourism (restaurant, bar, café, recreation spot, art and entertainment, sport centers) 49-51% 100%   Hotel, motel, golf arena 49-51% 100% Before the limit varied based on the location (except for ASEAN capital minimum 70%) Film industry restricted 100%   Testing lab for telecommunication equipment 95% 100%   Crumb rubber industry Restricted 100% Special license required Sugar industry 95% 100% Before building the processing plant, the manufacturer should open a sugarcane plantation. E-commerce Non regulated 100% With minimum capital of IDR 100 billion Waste management 95% 100% Non-hazardous waste Raw materials for pharmaceutical products 85% 100%   Film distribution Restricted 100%   Film processing lab 49% 100%   Waste management 95% 100%   Plantation 95% 95% Ownership mandated by law Distribution and warehousing 33% 67%   Tourism services 49% 67%   Vocational training 49% 67%   Port operation and management 49% 67%   Operational and management services for airport transportation (including cargo ground handling, aircraft leasing) 49% 67%   Private museums 51% 67%   Convention services 51% 67%   Telecommunication networks integrated with 65% 67%   Healthcare support service centers Restricted 67%   Construction services 55% 67% for projects value more than IDR 10billion Construction consultation services 55% 67% for projects value more than IDR 10billion Land transportation services Restricted 49%   Installation of high/super high-voltage electricity utilization Restricted 49%   Groundwater management Not limited 49%   Horticulture 30% 30% Ownership mandated by law Coral exploitation Open with special license restricted    Source: Vriens & Partners 2016 This policy is tailor made to encourage foreign actor to enhance their position in Indonesia which already raised of 19,2% (BKPM estimation) in 2015. For information, 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.
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


Press area & Media Gallery