Mon, 19 Oct 2015
The Indonesia Investment Coordinating Board (BKPM) had initiated a public discussion to revise the Negative Investment List (DNI) Friday last week. This measure is BKPM’s response to recent development in the business sector aimed at attracting more foreign investors. This plan, as explained by BKPM will be realized by revising existing DNI in the course of six months. Such plan is applauded as strategically wise, as the ASEAN Economic Community (AEC) will begin in 2016.

Head of BKPM Franky Sibarani asserted that business sectors are growing rapidly due to businesses creativity, where many new business sectors are emerging, including the unexpected ones. Mr. Sibarani emphasized that BKPM is still coordinating with various stakeholders.

“Currently, we are at the deliberation stage, which means BKPM is yet to decide which one will be allowed and prohibited. However, coordinating certain sectors does require some regulatory framework,” said Mr. Sibarani in a press conference held last Friday, 16 October 2015 at BKPM office.

Mr. Sibarani also revealed several business sectors that is planned to be regulated under the new DNI such as cemetery services, assisted living (providing accommodations for senior citizens), and application-based businesses.

Cemetery services, according to Mr. Sibarani, has never been regulated under DNI, as it is a new but closed-business which cannot be easily accessed, especially for foreign investors. It is hoped that the sector in question can be liberalized to accommodate foreign investments.

Mr. Sibarani further explained about assisted living, which currently is a growing business. He noted that a Japanese investor already show interest to invest USD 40 million, while another investor from Australia is willing to invest USD 26 million in this sector.

The main issue pertaining to this sector is categorization of assisted living as a business. Under the Indonesia Standard Business Classification (Klasifikasi Baku Lapangan Usaha Indonesia - KLBI), this sector is categorized as elderly hostels/nursing home supervised by the Ministry of Social Affairs. Making this sector in question a non-profit activity.

“Meanwhile, investors in the assisted living business would surely expect some form of profit from their investments,” asserted Mr. Sibarani.

Additionally, online businesses and application-based transportation business such as Go-Jek and Uber will also be discussed under the DNI revision. This business remains a major enigma, because application-based ojek (motorcycle taxis) and taxis with black license plate [as opposed to public taxis that use yellow license plate – red.] does not conform with the Traffic and Road Transportation Law.

BKPM also opens the possibility to incorporate businesses that falls under the supervision of more than one institution, in order to clearly clarify the applicable business policy for such sectors. As an example, Mr. Sibarani pointed out the marine animals business that is supervised by both the Ministry of Marine and Fisheries Affairs and the Ministry of Industries under the current DNI.

“The sector is preserved for micro-small-medium businesses on one hand, but are liberalized as long as it partners with national companies on the other hand,” asserted Mr. Sibarani.

Commenting on the DNI revision, banking expert Fauzi Ichsan pointed out that Indonesia still requires a huge amount of foreign investment, considering Indonesia’s current account deficit problem. Inviting foreign investors may be the solution for such problem, while at the same time DNI revision must reflect the national economic needs.

“DNI must put national economic needs at the top of its deliberation list. Do we need foreign investments or not? It is not sensible to turn down foreign investment when we do need one,” asserted Mr. Ichsan. Mr. Ichsan firmly believed that government opening up more to foreign investors is something normal, as the government must formulate investment-friendly regulations and policies.

Conversely, Hikmahanto Juwana, an international law expert, warns all parties to implement prudentiality principle when dealing with DNI, especially in certain sectors such as banking, since total liberalization in this sector can be extremely risky.

(hot/ds)



News Search/Filter
Transaction Rates
19 Oct 18
Buy
Sell
AED1
4,156.09
4,156.09
AFN1
200.85
200.85
ALL1
139.46
139.46
AMD1
31.59
31.59
ANG1
8,599.38
8,599.38
AOA1
50.47
50.47
ARS1
415.58
415.58
AUD1
10,832.05
10,832.05
AWG1
8,480.52
8,480.52
AZN1
8,966.17
8,966.17
BAM1
8,989.90
8,989.90
BBD1
7,632.45
7,632.45
BDT1
180.00
180.00
BGN1
8,940.39
8,940.39
BHD1
40,496.18
40,496.18
BIF1
8.52
8.52
BMD1
15,264.91
15,264.91
BND1
10,822.65
10,822.65
BOB1
2,208.63
2,208.63
BRL1
4,102.46
4,102.46
BSD1
15,264.91
15,264.91
BTC1
96,897,272
96,897,272
BTN1
207.56
207.56
BWP1
1,434.50
1,434.50
BYN1
7,233.41
7,233.41
BZD1
7,593.93
7,593.93
CAD1
11,671.11
11,671.11
CDF1
9.34
9.34
CHF1
15,327.75
15,327.75
CLF1
652,904.83
652,904.83
CLP1
22.57
22.57
CNH1
2,197.53
2,197.53
CNY1
2,200.28
2,200.28
COP1
4.94
4.94
CRC1
25.73
25.73
CUC1
15,264.91
15,264.91
CUP1
592.81
592.81
CVE1
160.01
160.01
CZK1
675.65
675.65
DJF1
85.73
85.73
DKK1
2,343.76
2,343.76
DOP1
305.30
305.30
DZD1
128.61
128.61
EGP1
852.31
852.31
ERN1
1,017.78
1,017.78
ETB1
547.64
547.64
EUR1
17,484.56
17,484.56
FJD1
7,143.83
7,143.83
FKP1
19,873.60
19,873.60
GBP1
19,873.60
19,873.60
GEL1
6,238.24
6,238.24
GGP1
19,873.60
19,873.60
GHS1
3,161.88
3,161.88
GIP1
19,873.60
19,873.60
GMD1
308.46
308.46
GNF1
1.68
1.68
GTQ1
1,973.35
1,973.35
GYD1
72.99
72.99
HKD1
1,947.43
1,947.43
HNL1
633.66
633.66
HRK1
2,356.96
2,356.96
HTG1
214.10
214.10
HUF1
54.10
54.10
IDR1
1.00
1.00
ILS1
4,171.93
4,171.93
IMP1
19,873.60
19,873.60
INR1
207.63
207.63
IQD1
12.80
12.80
IRR1
0.35
0.35
ISK1
129.62
129.62
JEP1
19,873.60
19,873.60
JMD1
115.42
115.42
JOD1
21,505.81
21,505.81
JPY1
136.05
136.05
KES1
151.46
151.46
KGS1
222.74
222.74
KHR1
3.72
3.72
KMF1
35.92
35.92
KPW1
16.96
16.96
KRW1
13.41
13.41
KWD1
50,341.70
50,341.70
KYD1
18,316.82
18,316.82
KZT1
41.88
41.88
LAK1
1.78
1.78
LBP1
10.09
10.09
LKR1
89.11
89.11
LRD1
97.22
97.22
LSL1
1,064.56
1,064.56
LYD1
11,040.70
11,040.70
MAD1
1,605.86
1,605.86
MDL1
896.65
896.65
MGA1
4.32
4.32
MKD1
285.16
285.16
MMK1
9.59
9.59
MNT1
6.12
6.12
MOP1
1,890.37
1,890.37
MRO1
42.75
42.75
MRU1
425.08
425.08
MUR1
443.79
443.79
MVR1
987.38
987.38
MWK1
20.98
20.98
MXN1
796.91
796.91
MYR1
3,663.98
3,663.98
MZN1
251.92
251.92
NAD1
1,047.69
1,047.69
NGN1
41.99
41.99
NIO1
474.27
474.27
NOK1
1,844.40
1,844.40
NPR1
129.73
129.73
NZD1
9,979.51
9,979.51
OMR1
39,655.41
39,655.41
PAB1
15,264.91
15,264.91
PEN1
4,575.12
4,575.12
PGK1
4,545.77
4,545.77
PHP1
281.85
281.85
PKR1
114.84
114.84
PLN1
4,060.93
4,060.93
PYG1
2.56
2.56
QAR1
4,192.41
4,192.41
RON1
3,743.99
3,743.99
RSD1
147.40
147.40
RUB1
231.94
231.94
RWF1
17.34
17.34
SAR1
4,069.07
4,069.07
SBD1
1,917.73
1,917.73
SCR1
1,099.30
1,099.30
SDG1
324.29
324.29
SEK1
1,687.99
1,687.99
SGD1
11,049.92
11,049.92
SHP1
19,873.60
19,873.60
SLL1
1.81
1.81
SOS1
26.33
26.33
SRD1
2,046.78
2,046.78
SSP1
117.18
117.18
STD1
0.72
0.72
STN1
719.36
719.36
SVC1
1,744.45
1,744.45
SYP1
29.63
29.63
SZL1
1,066.20
1,066.20
THB1
467.51
467.51
TJS1
1,621.43
1,621.43
TMT1
4,349.00
4,349.00
TND1
5,363.83
5,363.83
TOP1
6,619.96
6,619.96
TRY1
2,708.22
2,708.22
TTD1
2,264.58
2,264.58
TWD1
493.03
493.03
TZS1
6.67
6.67
UAH1
544.34
544.34
UGX1
4.02
4.02
USD1
15,264.91
15,264.91
UYU1
465.54
465.54
UZS1
1.85
1.85
VEF1
0.06
0.06
VND1
0.65
0.65
VUV1
137.28
137.28
WST1
5,826.50
5,826.50
XAF1
26.65
26.65
XAG1
222,577.30
222,577.30
XAU1
18,713,654.36
18,713,654.36
XCD1
5,648.33
5,648.33
XDR1
21,303.58
21,303.58
XOF1
26.65
26.65
XPD1
16,393,967.54
16,393,967.54
XPF1
146.52
146.52
XPT1
12,639,239.40
12,639,239.40
YER1
60.98
60.98
ZAR1
1,056.91
1,056.91
ZMW1
1,280.00
1,280.00
ZWL1
47.35
47.35
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services