Govt to shorten negative investment list
Govt to shorten negative investment list
JAKARTA (JP): The government is planning to shorten the
country's negative investment list as part of a new investment
policy initiative to secure a US$600 million loan from the Asian
Development Bank (ADB), according to Chairman of the Investment
Coordinating Board (BKPM) Theo F. Toemion.
Speaking in a press conference on Tuesday, Theo declined to
name which sectors would be excluded from the negative investment
list, but said that the government was considering opening up the
domestic broadcasting and media industry to foreign investors.
Theo said that the reason behind the inclusion of the media
and broadcasting sector in the list in the past was because the
government was afraid of foreign domination in news broadcasting.
"But now there are broadcasters from Singapore using Bahasa
Indonesia and aiming at Indonesians, seeing that, do we really
need to close off the sector?" he said.
Theo said that the negative investment list itself was still
needed to protect small and medium enterprises.
He said that other than those directly involved in the
development of small and medium enterprises, the sectors in the
current negative list may be removed.
The government's negative investment list regulates the amount
of foreign investment allowed in a sector.
In the latest negative list based on a presidential decree
dated July 20, 2000, foreign investors are banned from owning
natural forest concessions, cultivation of sperm plasma, and
owning logging contracts.
Foreign investors are also banned from owning taxis and buses,
public sea transportation, broadcasting and media and the film
industry.
They are also banned from trade and trade related services
except for large scale retailers, wholesalers, exhibition and
convention services, quality certification services and market
research services.
Sectors that allow up to 95 percent ownership by foreign
investors include port development and management; production,
transmission and distribution of electricity; shipping; the
processing and distribution of clean water for the public; public
trains; atomic power plants and medical services.
Sectors that allow up to 49 percent ownership by foreign
investors include the telecommunications sector and airlines
which operate both scheduled and unscheduled flights.
The list is updated annually.
The government has disclosed, on numerous occasions, the
content of the new investment policy initiative which covers
simplification in the procedure for obtaining investment
licenses, easing of requirements in employing expatriates and
opening up the domestic banking sector to foreign investors.
Theo said that a new investment law was currently being
drafted to provide equal treatment to domestic and foreign
investors.
He said that the draft would be presented to the House of
Representatives early in November.
"After we have finished with the draft, we will move on to
shortening the negative investment list," he said.
Separately, State Secretary Bambang Kesowo said that the
government's move to give equal treatment to domestic and foreign
investment was crucial to guarantee that the Indonesian
investment climate remained conducive.
Bambang also said that the government would review the
investment policy in the country's mining sector particularly
regarding the obligation of foreign mining companies operating in
the country to divest up to 51 percent ownership to local
investors after operating for 10 years.(tnt/dja)