Negative Investment List

Negative Investment List

Totally closed for investment

1. Agricultural Sector
-- Cultivation and processing of marijuana and other illicit drug
crops
2. Marine and Fishery Sector
-- Collection / utilization of sponges
3. Industrial and Trading Sector
-- production of chemicals harmful to the environment, such as
penta chlorophenol, Dichloro Dipenhyl Trichloro Ethane (DDT),
dieldrin, chlordane, carbon tetra chloride, Chloro Flouro Carbon
(CFC), methyl bromide, methyl chloroform, halon etc.
4. Industries producing chemicals stipulated in Schedule - 1 of
the Chemical Weapons Convention (sarin, soman, tabun, mustard,
levisite, ricine and saxitoxin)
5. Production of weapons and related components
6. Production of cyclamate and saccharine
7. Production of alcoholic drinks (liquor, wine and drinks
containing malt)
8. Casino and gambling facilities

Communications Sector
9. Air traffic system providers (ATS providers), ship
certification and classification inspections
10. Management and operation of Radio Frequency Spectrum and
Satellite Orbit Monitoring Stations
Mining and Energy Sector
11. Mining of radioactive minerals

Closed to foreign investment

Forestry and Plantation Sector
1. Germ plasm cultivation
2. Concessions for natural forests
3. Contractors in the field of lumber/logging
Transportation Sector
4. Taxi/bus transportation services
5. Small-scale sailing
Trading Sector
6. Trading and trading supporting services
Except:
Large-scale retailers (malls, supermarkets, department stores,
shopping centers) , wholesale trading (distributors /
wholesalers, exporters and importers), exhibition / convention
service providers, quality certification service providers,
market research service providers, warehousing services outside
seaports, and after-sale services.
Information Sector
7. Radio and television broadcasting services providers, radio
and closed circuit television broadcasting services, and
multimedia and printed media.
8. Motion picture production industry (film production, film
technical services, export and import film business, film
distributors and motion picture theater operation).

Open to foreign investment on condition of joint venture
with domestic investors

1. Building and operation of seaports
2. Electricity production, transmission and distribution
3. Shipping
4. Processing and provision of potable water for public use
5. Atomic power plants
6. Medical services, including the building and operation of
hospitals, medical checkups, clinical laboratories, mental
rehabilitation service, public health maintenance security, rent
of medical equipment, assistance services for health aid and
evacuation of patients under emergency conditions, hospital
management services and services for testing, maintenance and
repair of medical equipment
7. Telecommunications
8. Regular/non-regular commercial airliners.

Open to investment under certain conditions

Marine and Fishery Sectors
1. Cultivation of fish in fresh water
a. Open to foreign investment for freshwater turtles, certain
fish, fresh water giant shrimps and thillapya;
b. In cooperation with small-scale fishery businesses
2. Fishing of demersal fish (big fish, grouper and other sea
fish)
- except ZEEI areas of the Malacca Strait and Arafura sea

Industrial Sector
3. Production of wood pulp
a. Raw materials obtained from imported chips or guarantee of raw
materials supplied from industrial timber estates (HTI)
b. Other than sulfonating and/or chlorination (C 12)
4. Production of pulp made of other cellulose fibers or other
materials
- other than sulfonating and chlorination (C 12)
5. Production of chloro-alkali
- other than those using mercury
6. Processing of finished/semi-finished goods made from mangrove
wood
- raw material from mangrove cultivation
7. Money Printing
- Operational licenses from National Intelligence Agency and
approval from Bank Indonesia required.
8. Special Printing (postal stamps, duty stamps, Bank Indonesia
negotiable papers, passports and stamped postal matter)
- Operational licenses from the National Intelligence Agency
required
9. Milk processing industry (powder and sweetened condensed milk)
- processing (not only repackaging)
10. Plywood and rotary veneer production
- only for the Irian Jaya Province (Papua)
11. Sawn timber industries
a. only for the Irian Jaya province (Papua)
b. outside the Irian Jaya province (Papua), only using logs from
replanted forests
12. Ethyl alcohol industries
- Technical grade, being only used as raw materials and auxiliary
materials of other industries.
13. Industries producing raw materials for explosives (ammonium
nitrate)
- Only in cooperation with business entities which have secured a
recommendation from the Ministry of Defense
14. Industries producing explosives and components for industrial
(commercial) use
a. Only in cooperation with business entities which have secured
a. recommendation from the Ministry of Defense.
b. Only manufacturing activities, while storage and distribution
are executed by companies appointed by the government.
15. Electricity planning and supervision consulting services
Open to foreign investments with the provision that:
a. PLTA (Hydro power plant) with a capacity above 50 MW,
b. PLTU (steam power plat) with a capacity above 55 MW,
c. PLTP (geothermal power plant) with a capacity above 55 MW,
d. Main electrical relay station with a voltage above 500 KV,
e. Transmission networks with a voltage above 500 KV
16. Electricity equipment construction, maintenance, installation
services, development of technology supporting the supply of
electricity and testing of electricity installations.
Open to foreign investments with the provision that:
a. Main electrical relay stations with a voltage above 500 KV,
b. Transmissions networks with a voltage above 500 KV
17. Petroleum and natural gas drilling services
Open to foreign investments with the provisions that:
a. only for offshore drilling,
b. especially for locations outside the Eastern Indonesia Region,
must cooperate with national partners operating in a similar
business field.
18. Power plant businesses
- Open to locations outside Java, Bali and Madura

Trading Sector
19. Restaurants
- Open to foreign investments with the special provision that
they must be located in tourism areas/zones and/or integrated
with hotels
20. Gaming services
- Open to foreign investments with the special provision that
they must be located in tourism areas/zones and/or integrated
with hotels. (The Negative Investment List is based on
Presidential Decree No.118/2000 which was issued to amend the
Presidential Decree No, 96/2000)