Revisions Made on the 2014 Negative Investment List

Indonesia on Thursday (11/02) eased foreign investment restrictions for
dozens of industries in what President Joko Widodo has described as a
"Big Bang" liberalization of Southeast Asia's largest economy.

Indonesia relaxed rules for international firms in various sectors,
including agriculture, healthcare facilities, restaurants and movie
theaters.

This was the first revision since 2014 to the so-called Negative
Investment List, which spells out the sectors to which foreign
investment restrictions apply.

Thursday's announcement was not all about opening up Indonesia's
industries, however. Twenty sectors, including low-tech construction,
were added to the list of industries with foreign investment restrictions.

The following are changes to the Negative Investment List for major
industries:

100 percent open to foreign investment

- Toll roads (previously only 95 percent open to foreign ownership).

- Restaurants, bars; previously capped at 51 percent open to foreign
investment for restaurants and 49 percent for bars (if a company
partners up with a local small, micro, medium business cooperative, then
foreign control is capped at 51 percent).

- Film making (previously restricted for foreign investors).

- Film distribution (previously restricted for foreign investors).

- Cinemas (required to show Indonesian films at least 60 percent of
their screen time and previously restricted for foreign investors).

- Cold storage (previously 33 percent open to foreign investors and
limited to Sumatra, Jawa and Bali).

- Rubber industry; sheets and concentrated latex manufacturing
(previously 95 percent open to foreign ownership).

- Non-toxic waste management (previously 95 percent open to foreign
ownership).

Majority foreign stake

- Healthcare facilities such as medical instruments (67 percent);
medical devises calibration and maintenance services (previously foreign
investors could own up to 49 percent).

- Telecommunications networks and services (67 percent);
telecommunication towers operators and providers (previously restricted
to foreign ownership).

- Warehousing (67 percent, previously only up to 33 percent).

- Consulting services in construction (67 percent for projects valued at
over Rp 10 billion, previously only 55 percent open to foreign ownership)

Sectors opened up for the first time

- Installation of high-voltage utility (49 percent )

- Land transport (49 percent)

- Healthcare facilities such as medical instruments (67 percent)

- Film industry including distribution (100 percent)