Foreign share in domestic port business limited to 49%
The government is to open the port sector for investments from both national and foreign parties starting from next year following the approval of a government regulation on investments in the port sector, Bisnis Indonesia reported Friday (18/4/08).
However, the government will impose a restriction that foreign parties will only be allowed to own a 49% stake maximum in a domestic port business.
Minister of Transportation Jusman Syafii Djamal said the department would soon complete a government regulation (PP) on investment in the port sector.
"In the port administration sector, foreign companies are only allowed to own a 49% maximum.
Therefore, if a foreign investor interested in making investments in the port sector, they have to join hands with national investors, either private or with state-owned ones," he said.
He added that a presidential regulation (PP) on the issue was urgent in order to enable national and foreign private companies to immediately make investments in Indonesia. "The PP will also create certainty for state port operator (Pelindo) in administering domestic ports," he said.
However, the government will impose a restriction that foreign parties will only be allowed to own a 49% stake maximum in a domestic port business.
Minister of Transportation Jusman Syafii Djamal said the department would soon complete a government regulation (PP) on investment in the port sector.
"In the port administration sector, foreign companies are only allowed to own a 49% maximum.
Therefore, if a foreign investor interested in making investments in the port sector, they have to join hands with national investors, either private or with state-owned ones," he said.
He added that a presidential regulation (PP) on the issue was urgent in order to enable national and foreign private companies to immediately make investments in Indonesia. "The PP will also create certainty for state port operator (Pelindo) in administering domestic ports," he said.