After long awaited, the Indonesian government finally released the new Negative Investment List through Presidential Regulation No.44 of 2016 on Business Fields Closed to Investment and Business Fields Open with Conditions to Investment (“2016 Negative Investment List”) which was stipulated by President Joko Widodo on 12 May 2015 by the President Joko Widodo.
Through this 2016 Negative Investment List, the Indonesian government increases the proportion of foreign shares ownership in several business fields. Further, investors come from ASEAN countries can have bigger shares proportion compare to investor from outside ASEAN countries. However, the 2016 Negative Investment List also stipulates specific business field that require the foreign investor to have a cooperation with Small and Medium Enterprises in Indonesia.
By the issuance of 2016 Negative Investment List, the Presidential Regulation No.36 of 2010 on the same matter shall be revoked and no longer applicable.
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