Indonesian Government Releases 2016 Updated Negative Investment List (DNI)

On Thursday February 11th the Indonesian government held a press conference at the State Palace. The press conference concerned the 10th economic policy package. This package includes a revised negative investment list (DNI) that affects foreign direct investments (FDI). There are some big changes when comparing to the previous DNI regulation that stems from 2014. The updated package now allows 100% foreign ownership in 35 sectors that have opened up to FDI. The policy is ‘aimed at boosting investment, both domestic and foreign direct investment (FDI), while providing protection to small and medium enterprises (SMEs)’. On the new FDI list there were also 20 industrial sectors closed or restricted to FDI. There are now 4 sectors added from the previously 16 restricted sectors.  In total there are 49 sectors that will be affected by the new package.

The changes for FDI include allowing 100% foreign ownership in 30 sectors, including cold storage, tourism, warehousing, sport centres and manufacturing raw pharmaceutical materials. Then there are sectors where foreign ownership is allowed as long as the specified percentages are not exceeded. This includes

85% ownership for leasing companies, and 67% for companies in health care, travel bureaus and job training.

On the DNI list there are now 20 sectors closed to foreign investors, which are reserved for SMEs. These sectors include architectural design services, and all businesses with an investment value lower than 10 billion Rp. 

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posted 12.02.2016 by Wouter Wevers