Government to limis foreign capital in telecom sub-sectors
Jakarta (ANTARA News) - The government will limit foreign investment in premium call, premium SMS (Short Message Service) and courier services because these businesses are to be reserved for domestic small-and medium-scale enterprises (MSEs), a spokesman said.
"As we all know, so far, foreign investors can practically control up to 95 percent of businesses in all telecommunication sectors. But now we have decided that foreign investment in a few telecommunication sub-sectors should be limited," Communication and Information Minister Sofyan Djalil said here Monday.
Speaking to the press after a coordination meeting to discuss the government`s draft negative investment list (DNI) at the Finance Ministry, Sofyan said foreign investment in businesses where SMEs could already operate needed to be restricted. In businesses such as premium call and SMS premium servies, domestic capital should be the majority stakeholders.
About foreign investment in mass media, Sofyan said under the Press Law, foreign capital cannot enter such enterprises except through the capital market.
In television, foreign capital, according to the Broadcast Law, can have a stake of up to 20 percent, in satellites up to 85 percent and in cellular services up to 65 percent.
Asked about foreign courier services like DHL and Fedex, the minister said, these companies would not be allowed to operate beyond Indonesian airports. All goods they had carried to Indonesia or would carry from Indonesia to other countries would be picked up at or brought to the airports by domestic entities.
Sofyan said at Monday`s coordination meeting, the government had finalized the draft of a Government Regulation (PP) on Indonesia`s negative investment list (DNI).
"The final draft will be presented to a plenary cabinet meeting for further discussion before it is signed and issued," he said. (*)
"As we all know, so far, foreign investors can practically control up to 95 percent of businesses in all telecommunication sectors. But now we have decided that foreign investment in a few telecommunication sub-sectors should be limited," Communication and Information Minister Sofyan Djalil said here Monday.
Speaking to the press after a coordination meeting to discuss the government`s draft negative investment list (DNI) at the Finance Ministry, Sofyan said foreign investment in businesses where SMEs could already operate needed to be restricted. In businesses such as premium call and SMS premium servies, domestic capital should be the majority stakeholders.
About foreign investment in mass media, Sofyan said under the Press Law, foreign capital cannot enter such enterprises except through the capital market.
In television, foreign capital, according to the Broadcast Law, can have a stake of up to 20 percent, in satellites up to 85 percent and in cellular services up to 65 percent.
Asked about foreign courier services like DHL and Fedex, the minister said, these companies would not be allowed to operate beyond Indonesian airports. All goods they had carried to Indonesia or would carry from Indonesia to other countries would be picked up at or brought to the airports by domestic entities.
Sofyan said at Monday`s coordination meeting, the government had finalized the draft of a Government Regulation (PP) on Indonesia`s negative investment list (DNI).
"The final draft will be presented to a plenary cabinet meeting for further discussion before it is signed and issued," he said. (*)