Indonesia Negative Investment List

Having the urge to make investment in Indonesia, investor must adhere to some specific rules made by the government of Indonesia, especially regarding to what kind of business the investors going to establish. Although the government is welcoming as many investors as possible to Indonesia, there are some specific businesses which are not allowed. Those forbidden businesses are listed in the Indonesia Negative Investment List.

What is Indonesia Negative Investment List actually? It is a set of business sectors list which let investors know which is okay to invest plus its regulation, especially regarding shared ownership. Indonesia Negative Investment List is made to protect Indonesian economy, as well as to provide more business chances to investors. Over time, this investment list may change to be adjusted with government’s regulations. Therefore, it is important for investors to know the current Indonesia Negative Investment List before making further planning on their investment in Indonesia. The most important thing that investors need to know regarding the latest Indonesia Negative Investment List is about which businesses sectors that is opened with requirements and which is closed completely.

The business sectors which now open for 100% foreign ownership in trade are cold storage business, distribution affiliated with production, direct selling through marketing networks, and brokers. In tourism and creative economy, such as opening bars, cafes, restaurants, and sports facilities. While in communication and information sectors, there are investment that involved IDR 100 billion investment is allowed for 100% foreign ownership. Other, in energy and mineral resource sector, there is biomass pellet industry for renewable energy which open for 100% ownership.

On the opposite side, there are some business fields which are completely closed by the government for foreign investment as well as domestic investment. Those fields are national defense and environmental or health ground. You can’t also invest on management of land terminal for passengers, alcoholic beverages production, and establishing casino.

The latest Indonesia Negative Investment List will be revised in the short future. According to the Chairman of Indonesia Investment Coordinating Board BKPM, Thomas Lembong, there will be some prohibition removal to make it easier for investors to invest in Indonesia. The revision may not change much regarding the number of business sectors that investors can choose, but the revision will make sure that business sectors, which opened to investment, are completely free of obstacles.