TEMPO Interactive, Jakarta: The Investment Coordinating Board (BKPM) recently announced that public companies will not be included in the governmentâ€™s list of ‘negativeâ€™ investors.
This was announced by BKPM chairman, M. Lutfi on Monday after a meeting with the Chamber of Commerce and Industry (Kadin) in Jakarta. Lutfi said that as long as the public companies were listed in the Jakarta Stock Exchange, they would be regarded as locally-based companies.
Lutfi explained that the government was in the midst of revising Presidential Decree 111/2007, which regulates the list of negative investors.
Lutfi said the revision was intended to simplify the stake of foreign investment in local businesses. The current regulation divides the percentage of foreign investment in local businesses into the following categories, ranging from 99 percent, 67 percent, 65 percent, 55 percent, or 51 percent. Lutfi said the classification was to be simplified into three categories: 99 percent, 75 percent and 51 percent.
Chris Kanter, Kadin vice-chairman said his institution supported the simplification procedure but urged the government to involve Kadin in the revision process. It also demanded that the government provide solution for business sectors which were blocked from foreign investments. â€śNational companies should not suffer because some facilities were affected when foreign investors faced restrictions, like banks,â€ť said Chris.
The government earlier announced seven sectors or subsectors closed to foreign investors, which included tobacco processing, black tin smelter, cigarette, timber pulp, atsiri oil plantation, sugar and the crumb rubber industry.