More Australians to Invest in Bali After Revision of Negative

Investment List

An unnamed investor from Australia is planning to invest Rp 10 billion
($763,000) to open a restaurant in Bali following a foreigner-friendly
revision of Indonesia's negative investment list, according to the
Investment Coordinating Board, or BKPM.

The list — which is known by its Indonesian acronym DNI — now allows
food and beverage-related businesses to be fully owned by foreigners.

Previously, foreigners were only allowed to own stakes of between 33
percent and 67 percent in such businesses, depending on their location.

"The new negative investment list is a good news for investors,
hopefully, it will boost foreign direct investment from Australia," said
Sri Moertiningroem, the head of BKPM's Sydney representative office.

The unnamed investor will join tens — if not hundreds — of the existing
Australian restaurateurs and hoteliers who have set Bali's hospitality
industry in motion by opening bars, cafes, restaurants and hotels on the
island with local business partners.

According to Sri, the Australian entrepreneur has had the plan since
2014 but chose to postpone it due to the requirement to have a local
partner.

"Bali is one of the best tourism spots in the world," BKPM chairman
Franky Sibarani said in a statement.

Australia is among 10 investment origin priority countries or regions
alongside the United States, Singapore, Japan, South Korea, Taiwan,
China, the Middle East, Malaysia and the United Kingdom.

According to BKPM data, foreign direct investment from Australia reached
$59.98 million in the first quarter this year, up 41 percent from the
same period a year earlier.