{
    "success": true,
    "data": {
        "id": 1587641,
        "msgid": "foreign-divestment-obligation-reaches-this-far-1772625688",
        "date": "2026-03-04 18:01:39",
        "title": "Foreign Divestment Obligation Reaches This Far",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Regulation",
        "summary": "US authorities have flagged Indonesia's 51% foreign divestment requirement for mining as a trade barrier in the 2025 National Trade Estimate Report on Foreign Trade Barriers. Washington argues the rule undermines investor confidence and may not be compatible with reciprocal trade agreements, potentially chilling investment in Indonesia's natural resources sector. The regulation\u2014spurred by Government Regulation No. 96 of 2021, updated by Government Regulation No. 25 of 2024\u2014requires foreign miners to cede 51% ownership to Indonesian interests.",
        "content": "<p>The 51 per cent foreign divestment obligation has been under the\nspotlight of the United States Trade Representative since last year. The\nrule on the divestment of foreign-owned companies obtaining mining\nlicences could be rendered ineffective under reciprocal trade\nagreements. In addition to reducing state control over the management of\nnatural resources, the regulation could worsen the investment climate.\nThe criticisms by the United States toward the 51 per cent foreign\ndivestment rule in Indonesia\u2019s mining sector have emerged since last\nyear. The U.S. government considers this rule to add to the uncertainty\nof the investment climate in Indonesia. The divestment obligation was\nhighlighted by the United States Trade Representative in the 2025\nNational Trade Estimate Report on Foreign Trade Barriers, published on\n31 March 2025. The Office views Government Regulation No.\u00a096 of 2021,\nupdated by Government Regulation No.\u00a025 of 2024, as a trade barrier. The\ngovernment regulation provides that foreign companies that obtain mining\nlicences must relinquish 51 per cent ownership to Indonesia.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/foreign-divestment-obligation-reaches-this-far-1772625688",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}