ANNOUNCEMENT 29 Mar 2016

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

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Transportation Ministry regulation 33/2016 (in Bahasa Indonesia)
http://jdih.dephub.go.id/assets/uudocs/permen/2016/PM_33_TAHUN_2016.pdf

Transportation Ministry regulation 71/2013 (in Bahasa Indonesia)
http://jdih.dephub.go.id/assets/uudocs/permen/2013/pm._no._71_tahun_2013.pdf

2016 revision of Negative Investment List (in English)
http://www.ssek.com/download/document/Presidential_Regulation_44_of_2016_(2016_Negative_List)_English_151.pdf


Inception date: 29 Mar 2016 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

 On 29 March 2016, the Indonesian Ministry of Transportation published regulation 33/2016 amending regulation 71/2013 on salvage and underwater services.
The amendment introduces a foreign ownership cap of 49% in joint ventures in salvage services (art. 4(3)e) and requirement to obtain a business license from the Indonesian Capital Investment Coordinatin Board (BKPM).
Interestingly, the foreign ownership cap was not included in the newest revision of the Negative Investment List (cf. Related Measures), which was published on 18 May 2016.
The list of affected trading partners is based on the FDI flows for 2015 in the area "Transportation, Storage, and Communication" by the Bank of Indonesia.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A