ANNOUNCEMENT 24 Dec 2013

On December 24, 2013, the Indonesian Government announced that its triennial revision of the so-called “Negative Investment List”(Daftar Negatif Investasi, DNI), which limits foreign ownership in certain sectors, was completed and sent to the president for signing. On the whole, the revision allows for more foreign ownership in some sectors and restricts it in others. The new Negative Investment List was confirmed by Presidential Regulation 39/2014 on 23 April 2014. Update: On 11 February 2016, the Indonesian government updated its Negative Investment List (cf. Related Measures). As not all investment caps were updates, this measure remains in force.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Ministry of Economic Affairs, December 24, 2013, 'Draf Revisi Perpres DNI Rampung' (in Bahasa Indonesia): http://www.ekon.go.id/berita/view/draf-revisi-perpres-dni.458.html#.Us7Ny3npPck
The Jakarta Post, December 26, 2013, 'Govt raises foreign ownership limit': http://www.thejakartapost.com/news/2013/12/26/govt-raises-foreign-ownership-limit.html
Presidential Regulation 39/2014 (in Bahasa Indonesia):
http://www.bkpm.go.id/img/file/Peraturan/PP%2039_2014%20Full.pdf


Inception date: 01 Jan 2014 | Removal date: open ended

FDI: Entry and ownership rule

The following sectors are now more open to foreign investment: Land transportation facilities (new foreign ownership cap 49 percent from zero) Regular vehicle inspection (49 percent from zero) Pharmaceutical (85 percent from 75 percent) Furthermore, the following sectors will be opened for Public-private partnerships (PPP) projects: Airports (49 percent under concession period) Seaports (95 percent) Land transportation terminals (49 percent) Water utilities (95 percent) Toll road facilities (95 percent) Power plants (49 percent for 1-10 megawatt capacity, 100 percent for capacity of 10 megawatts above) Electricity transmission (100 percent) Electricity distribution (100 percent)

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 01 Jan 2014 | Removal date: open ended

FDI: Entry and ownership rule

The following sectors are now more restricted to foreign investment: Distribution (33 percent, from 100 percent) Storage (33 percent, from 100 percent) Cold storage (Sumatra, Java, Bali maximum 33 percent, for Kalimantan, Sulawesi, East Nusa Tenggara, Maluku and Papua maximum 67 percent, from 100 percent) The new regulation also introduces restrictions for the telecommunication sector: Fixed telecommunications (65 percent, previously unregulated) Multimedia-integrated telecommunication network (65 percent, previously unregulated) Multimedia service provider (49 percent, previously unregulated) Lastly, the ownership rules for the following sector were changed due to a law that came into force since the last Negative Investment List: Farming (30 percent from previously 95 percent, adjusted according to the 2010 Law on horticulture)
 
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