ANNOUNCEMENT 01 Feb 2016

In February 2016, the government of Indonesia announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 11 Feb 2016 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

 On 1 February 2016, the Indonesian Transportation Minister announced in the media that the country will loosen its investment restrictions in the areas of ground handling, air traffic navigation, maritime cargo handling, airport service management, aircraft leasing and air logistic services.
With the new provisions in place, foreign entities will be allowed to own up to 67 percent (previously 49 percent) of a business in these industries. The change does not hold for sea ports and airports because, according to the Minister, "(t)his is a sovereignty issue, because the port would not only control the land, it will also be in charge of the air space above it. We just cannot give that away to foreigners" (cf. Sources).
No official document has been published by the Transportation Ministry yet. Furthermore, no inception date was provided so far.
On 11 February 2016, the Indonesian government updated its Negative Investment List (cf. Related Measures). The changes included the previously announced updates to investments in transport services.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A