CMEA Secretary Susiwijono and other Staffs at the Press Conference of XVI Economic Policy at the CMEA Office - Photo by CMEA

JAKARTA (TheInsiderStories) –  Indonesian government has aborted 13 businesses open for foreign investor in the latest of Negative Investment List revision, said one government official. In mid-November, the government announced to allow foreigners to own shares in 54 businesses.  With this revision, only 41 businesses are now permitted.

According to Secretary for the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso on Wednesday (12/05), the businesses that were taken out from the lists were four business in the Micro, Small and Medium Enterprises and Cooperatives. Its means, that middle-class businesses are not allowed to enter the stripping and cleaning tubers, the fabric printing industry, the knit fabric industry, especially lace and internet cafes.

Then, the retail trade business by post and internet ordering will be put back into the partnership requirements category. Moegiarso stressed, in the presidential decree, the government would provide clearer provisions regarding partnerships than before.

Then, five of the seven business sectors that were previously proposed to be relaxed from the 100 percent ownership of domestic investor requirements will return according to the previous provisions.

The next category, four of the 17 business sectors will return to the negative investment lists and need recommendations to be able to receive foreign investment up to 100 percent. One of its business fields is the coral cultivation industry.

Furthermore, He explained, the upcoming policy will be integrated in the Single Online Submission (OSS) system, so that the business sector that does not comply with the provisions will automatically be rejected by the system.

Synchronizing government regulations, especially between the central and regional governments, is in the spotlight of the World Bank. The Fund’s economist, Indira Maulani Hapsari assesses, the synchronization between central and regional government still hampers the investment climate in the country.

“The problem is also quite large. When the central government is quite progressive, but in the field, the investors have to deal with local governments whose rules clash,” Hapsari said at one seminar in Jakarta.

She said, Joko Widodo – Jusuf Kalla’s government efforts to improve the business climate and to attract foreign investment should be appreciated and therefore can be a success. With a total of 16 policy packages that have shown results, one of which is shown by the increased ease of business ranking or Ease of Doing Business in Indonesia from 106 to 72.

The government itself has launched an integrated electronic licensing service system (OSS) in the middle of this year to facilitate the management of investment licenses in Indonesia. This service is a government effort to simplify business licensing and create a model of integrated licensing services that is fast and inexpensive and provides certainty.

Hapsari rated that support from local government in an effort to attract foreign investment was very important. “Not only does the central government must run. The regional government must also support it,” Indira said

Email: linda.silaen@theinsiderstories.com
SHARE
Previous articleFinMin: For the First Time Indonesia’s Revenues Exceed Target
Next articleMoody’s: Banks’s Creditworthiness Remain Stable Globally in 2019
The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

LEAVE A REPLY

Please enter your comment!
Please enter your name here