Indonesia to Issue Revised Foreign Investment Rules Next Week

By Rieka Rahadiana on 04:44 pm Apr 11, 2014
Traffic passes high-rise buildings in the central business district of Jakarta, Indonesia, on Tuesday, Dec. 10, 2013. (Bloomberg Photo/Dimas Ardian)

Traffic passes high-rise buildings in the central business district of Jakarta, Indonesia, on Tuesday, Dec. 10, 2013. (Bloomberg Photo/Dimas Ardian)

Jakarta. Indonesia, amid signs foreign investment growth may be flattening out, plans to issue its revised “negative investment list” next week, chief economic minister Hatta Rajasa said on Friday.

But he gave no details of what would be taken off the list, which Indonesia has long used to protect sensitive industries.

After months of delay, the government in late December announced it would allow increased foreign investment in power plants, advertising and pharmaceutical industries. But at the time, it did not say when the changes would take effect.

Also in the December announcement, it dropped earlier proposals to let foreigners fully operate airports and ports. Inadequate port facilities across the vast archipelago are frequently cited as a key deterrent to investment in a country whose infrastructure has in general failed to meet the demands of a rapidly growing economy.

“[The new list] will be issued next week,” Rajasa told reporters, adding that it had already been signed by President Susilo Bambang Yudhoyono.

An amendment of the list of sectors in which foreign investors are either barred or restricted was initially flagged back in August in efforts to heal the yawning current account deficit that had helped push down the rupiah by more than 20 percent against the dollar last year.

Reuters

  • blakep

    Hope foreign companies and investors don’t fall for it.

    They’ll be offered all kinds of promises and amended regulations to open certain industries and sectors until the $ are parked in the country, and then when the level of foreign investment has grown adequately, “Oh mister – law has changed. Please apply new unattainable permit!”

    Offer the honey and then snap shut on anyone who comes along and tries to take it – Hatta Rajasa’s face even looks like a Venus Fly Trap.

  • Greenbug

    Why do we always have ad hoc laws and our investment laws are always vague and unstable and subject to amendments after amendments. Investors will only have confidence in a country where laws and policies are consistently stable, clear, concise and re-assuring. Its shameful when foreign investors always say our investment laws are like the traffic – U-turn, Stop Look Go, Emergency Brake etc…