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4 Fields of Business Open for Foreign Investment :BKPM

Investment Coordinating Board (BKPM) head Mahendra Siregar said the revised 2010 government regulation (PP) on the negative list of investments had provided more opportunities for foreign investors in Indonesia.

“Four fields of business have become more open to foreign investment,” said Mahendra, when speaking about the revised PP No. 36/2010 on the Negative List of Investments (DNI) after a coordination meeting in Jakarta on Tuesday, as quoted by Antara news agency.

The four business fields are in the sectors of transportation, health, tourism and creative economy, and finance.

In the transportation sector, business activities open to foreign investment are providing and organizing land terminals, especially in the development of passenger terminals and public cargo terminals.

“The development of land transportation passenger terminals and public cargo terminals are now open for foreign investors with a share ownership of 49 percent maximum,” said Mahendra, adding a recommendation from the transportation minister would also be required.

Routine motor vehicle tests are also now open for foreign investors with a maximum share ownership of 49 percent and require a recommendation from the transportation minister.

In the health sector, foreign share ownership in the pharmaceutical industry has been expanded to a maximum of 85 percent from the current 75 percent and requires a recommendation from the health minister.

Mahendra explained that for the tourism and creative economy sector, the advertising businesses that used to require 100 percent domestic ownership now offered a maximum 51 percent share ownership for investors from ASEAN member countries.

In the financial sector, foreign ownership in the venture capital business has been increased to 85 percent from its previous 80 percent, which was based on Presidential Regulation No.9/2009 on financial institutions.

The revised PP DNI also includes business sectors in the field of trade that are a little more restricted to foreign investors. They cover the distribution, warehousing and cold storage sectors.

“For distribution, warehousing and cold storage for Bali, Java and Sumatra, foreign ownership is allowed up to 33 percent, but cold storage for Kalimantan, Maluku, Nusa Tenggara, Papua and Sulawesi is open for foreign investors with a maximum share ownership of 67 percent,” said Mahendra. (ebf)

Source: www.jakartapost.com, Tuesday, December 24 2013.