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Latest Presidential Decree on Negative Investment List

Gaya Guirous - Medjnoun - 27-mai-2016 11:25:57
  Latest Presidential Decree on Negative Investment List   On the 24 th 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 m 2 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%     T he 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.
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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

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