Im interested in knowing when the countries implemented these policies and what sort of results they had.
north korea, albania, zimbabwe, saudi arabia ... hell, the list goes on and on. they have all been extremely successful in avoiding foreign investment.
The government reaffirmed its commitment Wednesday to protecting local business by expanding the list of business fields closed to foreign investment.
"The new negative investment list will be longer and more detailed," Trade Minister Mari Elka Pangestu told reporters in Jakarta, referring to the list of business fields that are off-limits to foreign investors.
Mari said that protection was necessary to support local businesses and was in line with the national interest. However, she said that the expansion of the negative list should not be seen as an effort to restrict foreign investment but merely to establish clarity and transparency of rules and regulations.
"The previous list only classified business areas into general sectors, while there were business fields that were omitted. These will now be defined within the classifications set out in the new list," she explained, while refusing to go into more detail.
Mari said the list was being finalized by the Coordinating Ministry of the Economy after months of drafting by the Investment Coordinating Board (BKPM), and was expected to be signed by the President this month.
"Hopefully the list will be finished this month as we have to harmonize it with the existing laws and regulations first. But our commitment to supporting local business and traditional markets is clear," she said.
On April 20, BKPM chairman Muhammad Lutfi told foreign investors that the list would be longer than the previous list, but assured them that it was not aimed at leveraging restrictions, but rather establishing transparency.
Under the old list, issued in the form of a presidential decree, the sectors that are totally closed to foreign investment include germ plasma cultivation, concessions for natural forests, contractor services in the field of lumbering, taxi and bus transportation services, small-scale shipping services and the motion picture industry.
Meanwhile, the sectors that are subject to conditions include the building and operation of seaports, electricity generation, transmission and distribution, shipping, processing and provision of potable water for public use, atomic power plants and medical services.
Mari hinted that the new list would adhere to the business classifications defined in the government's Indonesian Formal Business Classification (KBLU), but said that more business fields would be included on the list than were defined by the KBLU.
On protecting traditional markets from the growing competition from modern retail outlets, the government is also preparing another presidential decree that is also scheduled to be finalized this month.
The government's staunch commitment to protecting certain business fields is actually part of a deal it made with the House of Representative for passing the new Investment Law in March. The new law is designed to give equal status and treatment to local and foreign investors.
Didik J. Rachbini, the chairman of House commission VI, which deals with investment issues, had earlier said that "equal treatment was not equal opportunity."
On Wednesday, Mari agreed, saying that "equal treatment will be given post establishment, meaning that there will be a screening that will have to be gone through before the foreign investment is allowed in."
"The pre-establishment period does not entail equal treatment," she said, adding that other countries adopted similar stances in the name of the national interest.
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