ANNOUNCEMENT 11 Sep 2013In September 2013, the government of Indonesia announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
BKPM Regulation 12/2013 (in Bahasa Indonesia):
On 11 September 2013, the Indonesian Capital Investment Coordinating Board (BKPM) issued regulation no. 12/2013 loosening previous restrictions from regulation 5/2013 (cf. Related Measures). The most notable one involves scrapping articles 49 and 50 on public companies, hence publicly listed companies held by foreign shareholders are no longer categorized as a Foreign Investment Company (PMA). As suggested by SSEK Indonesian Legal Consultants, this "would have potentially subjected these companies to Indonesia's Negative Investment List, which determines which business sectors are closed to foreign investment or which otherwise contain restrictions on such investment".
Other amendments included deleting the restrictions for venture capital companies to own shareholdings in PMAs. However, since similar prohibitions still apply with regulation 12/2013 of the Finance Ministry, these provisions have de facto not changed the current restrictions on venture capital companies in force.
The regulation came into force on the day of its issuance.