ANNOUNCEMENT 24 Nov 2010

In November 2010, the government of Indonesia announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official government regulation 13/2010 (in Bahasa Indonesia):
http://ngada.org/uu13-2010bt.htm

Secondary Source:
http://ap.fftc.agnet.org/ap_db.php?id=278


Inception date: 24 Nov 2010 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 24 November 2010, the Indonesian parliament passed law no.13/2010 introducing new caps for investment in the horticulture industry. The maximum foreign ownership cap was reduced from 95 to 30% (art. 100(3) of the law). Furthermore, foreign investments shall be possible only in large-scale horticultural units (art. 100(2)) and they are required to deposit the same amount as the investment on a local bank account (art. 100(4)). Also, the ownership in the horticultural unit cannot be financed by a local credit (art. 100(5)).The regulation came into force on the day of its issuance.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A