New regulation clarifies guidelines and procedures for FDI

Indonesia's Investment Coordinating Board (BKPM) has issued a new regulation amending BKPM Regulation 6/2018, which sets out guidelines and procedures for licensing and facilities under Indonesia's foreign direct investment (FDI) regime. BKPM Regulation 5/2019 came into effect on 29 July 2019. Changes introduced by Regulation 5/2019 include: - the reaffirmation that certain FDI companies must comply with divestment obligations; - the incorporation of provisions on the fulfillment of FDI companies' divestment obligations; and - the confirmation that shareholding foreign directors and commissioners are exempt from the general expatriate employment rules (subject to a minimum shareholding threshold).

• Type:

  • Treatment and operation (Operational conditions , Other)

• Industry:

  • Not industry specific

• Sources:

  • Norton Rose Fulbright, Indonesia’s Investment Coordinating Board revises divestment requirements, https://www.nortonrosefulbright.com/en/knowledge/publications/7d047d87/indonesias-investment-coordinating-board-revises-divestment-requirements, 30 Sep 2019
  • Lexology, New BKPM regulation clarifies guidelines and procedures for licensing and facilities under FDI regime, https://www.lexology.com/library/detail.aspx?g=396d3dce-efad-46f7-9bba-de13ef426f00, 11 Sep 2019