Five foreign investors and their Indonesian partners invested $65.5 million in Jambi province last year, a report said, according to Antara. The investment projects created jobs for more than 2,700 people, said the report, issued by the provincial development and promotion body on Monday (2/7/07). Malaysian-Indonesian venture PT Plant Biofuel Indonesia, engaged in base organic chemicals, invested $48 million to open its business in Tanjung Jabung Barat district.

The government has issued its latest “priority investment list”, which sets out a more comprehensive description of which business sectors are opened and closed to investors. The new list, required under the recently enacted Investment Law, governs a total of 338 business sectors, of which Trade Minister Mari Pangestu said 69 sectors would now be more open than before, with 11 becoming more restrictive, The Jakarta Post reported Thursday (5/7/07).

JAKARTA - In an unexpected lurch toward more market protectionism, Indonesia last week greatly expanded its "negative investment list" of local industries to which foreign investment is partially or wholly restricted in Southeast Asia's largest economy. The new list, which does not require parliamentary approval and is mandated under the recently enacted 2007 Investment Law, will affect at least 338 business sectors, up substantially from 83 previously.

To help develop the renewable energy sector and the use of biofuels, the government is considering providing various incentives, including value-added tax (VAT) reductions for business players, and excise duty cuts for biofuel users. Evita H. Legowo, first secretary of the government-sanctioned National Biofuel Development Committee, said Tuesday that the incentives were currently being discussed with tax officials at the Finance Ministry.

After liberalizing the oil and gas sector, the government now plans to do the same in the power sector, with a bill allowing new players to compete with state utility PT PLN in electricity generation, distribution and transmission. Under article 10(2) of the latest version of the electrical power bill, local government-owned and private-sector firms will be allowed to enter the sector so as to help ensure sustainable electricity supplies throughout the country for the first time.