IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 18 May 2016 | Removal date: open ended
Still in force

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:

  • on distributors and warehousing - from 33 to 67%
  • on cold storage units - from 33 to 100%
  • on job training agencies, travel agencies, golf courses - from 49 to 67%
  • on sports centres, film-processing laboratories and the crumb rubber industry - from 49 to 100%
  • on private museums, catering services, convention centres - from 51 to 67%
  • on restaurants, bars and cafes - from 51 to 100%
  • on construction businesses/consultancies with contracts worth at least 10 billion IDR (ca. 740 thousand USD) - from 55 to 67%
  • on telecommunication companies - from 65 to 67%
  • on raw materials industry for medicine - from 85 to 100%
  • on toll road concessions, telecommunication equipments companies and related laboratories - from 95 to 100%

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).

AFFECTED COUNTRIES

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