ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
On 11 February 2016, the Indonesian government announced a revision of its Negative Investment List as part of its tenth stimulus package - with the first being rolled out in September 2015 (cf. Related Measures).
The revision includes a number of loosened investment restrictions, particularly in services. Some of these liberalisations were announced earlier by specific ministries (cf. Related Measures).
The new list includes following changed investment caps:
Certain industries are open to foreign investments only for very large contracts. According to the Coordinating Ministry for Economic Affairs, these provisions are meant to protect local micro, small and medium-sized entreprises.
Previously announced investment cap changes included transport services and e-commerce companies (cf. Related Measures).
The official comprehensive list was provided in the presidential regulation 44/2016, which came into force on 18 May 2016.
The list of affected trading partners is based on the 2015 foreign direct investment flows provided by the Bank of Indonesia (cf. Sources).
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