Investment restrictions no longer needed: BKPM<\/p>\n
JAKARTA (JP): State Minister of Investment Marzuki Usman
\nacknowledged on Friday the need to open a number of business
\nsectors currently included on the Negative Investment List.<\/p>\n
Marzuki said a review of some business sectors currently
\nclosed to foreign companies was necessary to boost foreign direct
\ninvestment.<\/p>\n
\"As the chairman of the Investment Coordinating Board (BKPM),
\nI would prefer that, if possible, there was no negative
\ninvestment list at all,\" he said. \"At least we can provide a
\nclearer explanation of why we have to close certain sectors to
\nforeign investment.\"<\/p>\n
The Negative Investment List, which catalogs business sectors
\nclosed to foreign investment, was last issued in 1995 and has not
\nbeen updated since.<\/p>\n
Sectors closed to capital investment wholly owned by foreign
\ncitizens or legal entities include airlines, port construction
\nand operation, waterwork construction and operation, atomic
\nenergy, public railways, shipping and telecommunications.<\/p>\n
Sectors closed to capital investment with partial foreign
\nownership include businesses which support domestic trade, local
\nshipping, the operation of cinemas, private television and radio
\nbroadcasting services, retail trade and taxi and bus
\ntransportation.<\/p>\n
Sectors closed to foreign capital investment unless certain
\nrequirements are met include aircraft equipment and accessories,
\nalcoholic drinks, ethyl alcohol outside technical grade,
\nexplosives, firecrackers, the manufacturing powdered or condensed
\nmilk except when integrated with cattle breeding, the printing of
\nvaluable papers such as Bank Indonesia securities, duty stamps,
\npassports or postage stamps, producing ordinary plywood, except
\nin East Timor and Irian Jaya, and operating sawmills, except in
\nEast Timor and Irian Jaya.<\/p>\n
A number of sectors are absolutely closed to foreign capital
\ninvestment, including the operation of casinos or gambling
\nhouses, the veneer industry, the processing of finished and
\nsemifinished products from mangrove wood, the pulp industry and
\nsulfide processing, the processing of dichlorodiphenyl
\ntrichloroethane (DDT) and dieldrin and chloradane, the
\nutilization and exploitation of sponges and the
\nchlorofluorocarbon industry.<\/p>\n
For certain business sectors this policy is no longer
\nrelevant. The government has, for example, allowed foreign
\ninvestors to participate in operating seaports and managing
\ndrinking water as part of its privatization program.<\/p>\n
Marzuki said a review of the closed sectors could only be done
\nin collaboration with related ministries, because they knew more
\nabout the costs and benefits of lifting the restrictions.<\/p>\n
He said more transparent investment procedures and wider
\nopportunities to invest in various sectors were expected to
\nattract more foreign investors to the country.<\/p>\n
Foreign direct investment approved by the government in the
\nfirst six months of this year plunged by 77.5 percent to US$1.88
\nbillion, from $8.35 billion during the same period last year.
\n(cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/investment-restrictions-no-longer-needed-bkpm-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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