Continuing the previous economic policy package, Indonesian Government has announced its latest effort to draw more investment to South Asia’s largest economy by opening dozens of business sectors in Indonesia to full and partial foreign ownership through Economic Policy Package X (Paket Kebijakan Ekonomi Jilid X).
As per press release dated February 11, 2016 from the Coordinating Ministry of Economic Affairs, No less than 35 (thirty five) business sectors are planned to be opened for PT PMA (Perseroan Terbatas Penanaman Modal Asing) which has full 100% foreign ownership, including cold storage, toll roads management, film production (including distribution of films), restaurants, and raw material industry for medicines. Indonesian Government also plans to open business sectors previously restricted to PT PMA, such as high-voltage electrical installation (49%), passenger land transport (49%), health support services such as fumigation and ambulances (67%).
However, the Foreign Investors must have to wait until Indonesian Government released a full official list of the investment changes, which is the revision of the Negative Investment List regulated in Presidential Regulation No. 39 of 2014 (“Negative Investment List/DNI”). The revision of the DNI has been one of the most awaited government action to attract more FDI (Foreign Direct Investment) in Indonesia with the purpose of easier investment navigation for all Foreign Investors looking forward to invest in the Southeast Asia’s largest market, and to make doing business easier in the country. The revision of the DNI is planned to be issued approximately on April 2016.
Based on the listed business sectors in the Press Release by the Coordinating Ministry of Economic Affairs, several of the key changes to the investment composition of PT PMA and their business sector classification based on KBLI 2015 are as follows:
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting is an Indonesian Corporate Legal Services. We assist foreign investors in establishing their business in Indonesia through various forms of investment pursuant to the prevailing laws and regulations in Indonesia. Our knowledge, experience, and connections makes us the law firm to be your legal partner in Jakarta, managing your investments in Indonesia.
If you need immediate assistance, please contact the SMART Help Desk at: