Decree lists restricted business sectors
Decree lists restricted business sectors
JAKARTA (JP): The negative investment list in Presidential
Decree No 31, 1995, which was issued on Tuesday as part of the
government's latest deregulation package, contains four
categories of restricted business activities.
The first category contains business sectors which are closed
to wholly foreign-owned companies. The second category consists
of those entirely closed to wholly and partly foreign-owned
companies. The third category includes businesses which are
entirely closed to new investors, except those who fulfill
certain requirements, while the fourth category covers those
sectors which are totally closed to both domestic and foreign
investors.
* Business sectors which are closed to wholly foreign-owned
companies (and open to Indonesian-foreign joint ventures) are the
construction and operation of seaports; power generation,
transmission and distribution for the public; telecommunications;
shipping; aviation; the construction and operation of drinking
water plants; railway services; and atomic power plants.
* Business sectors which are closed to wholly and partly foreign-
owned companies include taxi and bus transportation services;
local shipping services; retailing and its related services;
supporting services for domestic trade such as advertising; radio
and television broadcasting services; movie theaters.
The government's announcement on the negative investment lists
on Tuesday caused confusion as the term "supporting services for
domestic trade" appeared in both the first and the second
categories.
A copy of the presidential decree stipulating the restricted
business sectors was available only on Wednesday.
* Business sectors which are closed for investments except those
which fulfill certain requirements include: the production of
milk powder and canned milk except if it is integrated into a
dairy farm; sawmilling, except in the provinces of East Timor and
Irian Jaya; plywood production, except in East Timor and Irian
Jaya.
The printing of certain official documents, such as postage
stamps, Bank Indonesia's securities and passports are closed to
both foreign and domestic companies other than Perum Peruri, the
state-owned valuable paper printing company.
Other business sectors included in this category are the
production of ethyl alcohol, except that of technical grade; the
production of explosives, except by state-owned PT Dahana and PT
Multi Nitrotama.
The manufacture of aircraft and their engines and supporting
facilities is closed unless it is in cooperation with or for PT
IPTN, the state-owned aircraft manufacturing company in Bandung.
The production of alcoholic beverages is closed unless it is
for export, as is the case for the production of firecrackers.
* Businesses which are totally closed to private investment are
forest-clearing services, casinos and other gambling activities;
sponge processing; the manufacture of semi-finished and finished
mangrove wood; the production and processing of marijuana; the
production of saccharin; and the production of pulp using
sulfate, chlorine-alkali, chloro-fluoro carbons or freon.
The decree also stipulates 37 business sectors reserved for
small-scale companies.(hen)