ANNOUNCEMENT 14 Oct 2014In October 2014, the government of Indonesia announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
Original regulation 23/2010 (in Bahasa Indonesia):
First Amendment 24/2012 (in Bahasa Indonesia):
Third Amendment 77/2014 (in Bahasa Indonesia):
List of FDI flows by Indonesian central bank:
On 14October 2014, the Indonesian president signed government regulation no. 77/2014relaxing the divestment requirements for foreign mining companies. These provisions were already the third amendment to law no. 23/2010 on the establishment of mineral and coal mining businesses.
The most significantchanges involve erasing articles 7A and 7B from the first amendment 24/2012 (cf. Related Measures) on mining companies having to be held in majority by locals. The new provisions allow foreign shareholders ranging from 49 to 70% (art. 7C of the 2014 regulation).Furthermore, the divestment requirements for foreign entities were relaxed(cf. art. 97 of regulation 77/2014).
The regulation came into force on the day of the day the president signed the law.
The list of affected trading partners is based on the list of FDI flows over 10 million USD in 2013 in the sector "Mining and Quarrying", as calculated by the Indonesian central bank.