Releasing "Positive List" of Investment
04 Mar 2021
On 4 March 2021, Presidential Regulation 10 of 2021 on business fields open to investment (‘positive investment list’) came into effect. It replaces Presidential Decree No.36/2010 (‘negative investment list’). Presidential Regulation 10 of 2021 is part of Indonesia’s ongoing economic reforms through the Omnibus Law.
The general principle under the positive investment list is that a business sector is open to 100 percent foreign investment unless it is subjected to a specific type of limitation.
Indonesia has classified business fields into four categories.
1. Priority sectors – 245 business lines open for foreign investment;
2. Business fields that stipulate specific requirements or limitations — 46 business lines open;
3. Businesses fields open to large enterprises, including foreign investors, but are subject to a compulsory partnership with cooperatives and micro, small, and medium-sized enterprises (MSMEs) — 51 business lines open; and
4. Business fields reserved for cooperatives and MSMEs (not open to foreign investment) — 112 business lines.
Important sectors that had previous foreign ownership restrictions, which have now been lifted include, among others: (1) telecommunications; (2) transportation; (3) energy;
(4) distribution; and (5) construction services.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Services (Electricity, gas, steam and air conditioning supply, Wholesale and retail trade, Transportation and storage, Telecommunications)
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Sources:
