Indonesia mulls expanding foreign ownerships

Photo by Cabinet Secretary

JAKARTA (TheInsiderStories) – The Indonesian government aiming to revise the negative list of investments to attract more investment enter the country, said one senior official. On May, 2016, government enacted Presidential Regulation No. 44 of 2016, which sets out the new negative investments list and revokes the 2014’s Negative List.

As such, the 2016 Negative List is largely consistent with the 10th Economic Package announced by the Indonesian Government in February 2016. The opening of certain sectors to foreign investment in the 2016 Negative List, as well as other key changes, such as the streamlined investment process and simplified categories, are significant steps forward in this regard and are indicative of the intention of policymakers and lawmakers to achieve these goals.

“Yes it is to further open up. We will deregulate negative list of investment by re-revising the Presidential Regulation on the List of Closed and Open Business Sectors with the Requirements in the Field of Investment,” said Coordinating Minister for Economic Affairs (CMEA) Darmin Nasution after meeting with President Joko Widodo at the Merdeka Palace on Tuesday (20/6).

A detailed discussion of the revision, He continued, will be coordinated by the CMEA’s Office. Darmin said, there are many points in the regulation that will be revised. Minister of Transportation Budi Karya Sumadi added, President Widodo sees the influx of foreign investments not as expected compared to foreign investors’s investment in neighboring countries.

 

At the meeting, Budi explained, one of which opened for foreign investment was airport management. Currently, in the investment law government limiting foreign ownership in this sector.

 

 

in the first quarter of 2017, The Investment Coordinating Board of the Republic of Indonesia (BKPM) announced, investment realization of Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) reached Rp165.8 trillion, grew by 13.2 percent compared to the same period in 2016, Rp146.5 trillion. Chairman of BKPM, Thomas Lembong stated that achievement of investment realization in First Quarter of 2017 gives optimism to reach the national target for investment in 2017 which is Rp678.8 trillion.

Finance Sri Mulyani Indrawati has said, the Indonesian economy is faced with the supply and demand challenges. If the demand side, like export and investment could grow above 8 percent then the economy could be close to 6 percent. (DS)