invest in
Negative List Seminar with JICA, Jakarta, 2nd June2016
INDONESIAN NEGATIVE LIST REVISION
INDONESIA INVESTMENT COORDINATING BOARD
Investment Climate
Economic Package X
Negative List Revision – Presidential Regulations 44/2016
100% FDI
Distributor
100% FDI
affiliated with
production
Raw material for
67% FDI for distributor
not affiliated with
production
From previously open
to 85% FDI
Pharmacy
100% FDI
Film Industry
Production, postproduction,
distribution,
projection
100% FDI
100% FDI
E-Commerce
in partnership with
SMEs
From previously closed
to FDI
67% FDI
Transport
infrastructure &
support services
Including cargo
handling and air
transport
Marketplace
For min. Investment of
IDR 100 billion (USD 8
million). Open 49% FDI
for investment
< IDR 100 billion
100% FDI
Tourism
Sports center,
restaurant, bar,
cafe
The Investment Coordinating Board of the Republic of Indonesia
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Negative List Revision
on List of Business Fields Closed to Investment and Business Fields Open, with Condition,
to Investment.
Purpose for the Changes:
1. The achievement of national targets both economic and infrastructure
development
2. Enhancing the role of domestic and foreign investments in economic
development
3. Creation of new employment opportunities
4. Increasing value added and national exports
5. The increase in state revenues
The Investment Coordinating Board of the Republic of Indonesia
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Mechanism For “Negative Investment List” Formulation
Inputs from
Ministry/Govt.
Institution
Inputs from Various
Stakeholders:
 Embassy
 Foreign Chambers
 Business Association
 Etc.
Implementation of
Presidential Reg.
39/2014
Business International/
Economic Development
Coordinating Ministry,
BKPM and Ministry/
Govt. Institution
BKPM and Ministry/
Govt. Institution
President
Enactment of
Presidential
Regulation
Pending Issue
The Investment Coordinating Board of the Republic of Indonesia
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Negative List Revision Overview
• Revision of the Presidential Regulation on negative list
ensure that henceforth no regulatory level under the
regulation, which is more limiting (restrictive).
• After Presidential regulation 44/2016 being enacted, the
regulation of implementing regulations under the Negative
List (including the Regulation of the Minister or Head of
Institution) must comply with the provisions in this
regulation.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44/2016
– New Provisions-
The Investment Coordinating Board of the Republic of Indonesia
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Business Sector Provisions on Appendix
Separation of Business Fields from 2 Appendix to 3 Appendix
Presidential Regulation 39/2014
Presidential Regulation 44/2016
Article 1
(2) List of closed business field as referred to in
paragraph (1), is as set out in Appendix I of
this Presidential Regulation.
Article 2
(2) List of business fields open, with conditions,
as referred to in paragraph (1), is as set out in
Appendix II of this Presidential Regulation.
Article 4
Closed Business Fields referred to in Article 2 paragraph
(1) point b are listed in Appendix I and is an integral part
of this Presidential Regulation.
Article 5
(1) Business fields open, with conditions : which are
licensed businesses reserved for or requiried
establish under a Partnership with Micro, Small and
Medium Enterprises and Cooperatives as referred
to in article 2 paragraph (2) point a are listed in
Appendix II and is an integral part of this
Presidential Regulation.
(2) The partnership which is referred in paragraph (1)
conducted by the Investor with Micro, Small and
Medium Enterprises and Cooperatives with the
pattern: the core plasma, subcontracting, agency,
franchise, and the pattern of other partnerships.
Article 6
Business Fields Open with certain Conditions as referred
in Article 2 paragraph (2) point b are listed in Appendix
III and is an integral part of this Presidential Regulation.
The Investment Coordinating Board of the Republic of Indonesia
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Provisions of Investment Implementation
Investment Implementation through the Portfolio and the provision of Negative List on
Special Economic Zones
Presidential Regulation 39/2014
Article 5
Presidential Regulation 44/2016
Article 8
The provisions referred to in Article 1 and Article (1) In terms of implementation of Investment
2 shall not be applicable for non-direct
activities in Business Fields Open with
investment or whose portfolio transactions is
condition referred to in Article 2 paragraph
made through a the domestic capital market.
(1) point c conducted as non-direct
investment or whose portfolio transactions
is made through a the domestic capital
market, which is Business Fields Open with
conditions referred in Article 2 paragraph (1)
point c becomes Opened Business Fields.
(2) In terms of implementation of Investment
activities in Business Fields Open with
condition referred to in Article 2 paragraph
(2) shall be conducted in Special Economic
Zones, the Business Sector becomes Open
Business Fields except Business Fields which
are reserved for Micro, Small and Medium
Enterprises and Cooperatives.
The Investment Coordinating Board of the Republic of Indonesia
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Monitoring, Evaluation and the settlement of Investment Issues
The addition of Provisions related to the authority in the Monitoring, Evaluation and the
settlement of Investment Issues
Presidential Regulation 44/2016
Article 12
(1) Minister who held coordinate government affairs in the field of economic, performs
monitoring, evaluation, and the settlement of Issues in the implementation of
Investment activities in Business Fields as regulated in this Presidential Regulation.
(2) Implementation of the monitoring, evaluation, and settlement of the issues as
referred to in paragraph (1) is assisted by National Team For Export and Investment
Improvement (Tim Nasional Peningkatan Ekspor dan Peningkatan Investasi) whose
been formed and established by a separate presidential Regulation.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44/2016
Overview
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
More Open to Investment
Presidential Regulations Number 44 of 2016 is more open to
investments, with the following changes :
• More Business Sectors open to 100% foreign capital ownership
and excluded from the negative list, most of them are creative
industry sectors.
• The number of business fields in the category Open With
Conditions has been reduced, from 664 becoming 515 business
fields.
• More Business Fields which will be opened to foreign investment
with majority shares ownership (more than 50% shares
ownership).
• The number of Business Fields which is allocated for 100%
domestic ownership has been reduced from 66 business sector.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Easier Investment process
Presidential Regulations Number 44 of 2016 makes investment process
is easier, with these following changes:
• Deleting the prior-investment technical approval from other
Ministries/Institutions, including Technical Recommendation
from Agriculture Ministry for Plantation more than 25 Hectares.
• Deleting the conditions which are related to Regional
Government, including the conditions in 18 tourism Business
Fields.
• The Indonesian Negative List is not applicable to investment in
Special Economic Zone (SEZ). Except for Business Fields which
are allocated for Micro, Small, Medium Enterprises (UMKM) or
Cooperation (Koperasi) as listed in appendix II.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Protection of investor
Presidential Regulations Number 44 of 2016 provided more protection
to investor, with these following changes:
• The addition of the provisions related to monitoring, evaluation, and
settlement of issues in respect of investments will be assisted by Tim
Nasional Peningkatan Ekspor dan Peningkatan Investasi (Timnas
PEPI).
• The addition of the provisions relate to the prohibition of the
establishment of regional regulations or the Ministry / Agency
regulations which is contrary to the Presidential regulation on
Negative List.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Easier to be Understood
Presidential Regulations Number 44 of 2016 is easier to be
understood by the investors, with these following changes:
• The number of foreign ownership are simplified to several
numbers, which are 49%, 67% or 95% foreign ownership,
which are in line with Indonesian Company Law.
• The Business Fields are divided into 3 categories:
 The Business Fields which are closed for investment
 The Business Fields which are allocated for Micro,
Small, Medium Enterprises (UMKM) or Cooperation
(Koperasi) and Partnership (Kemitraan)
 The Business Fields which are opened with conditions
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Reduce the cost of logistic
•
•
•
To reduce the cost of logistic for investors who produced the goods or
open a fabric, the Distributors who affiliated to the Producers are opened
for 100% foreign investment. In addition, for the non-affiliated Distributors,
the foreign ownership are increased from 33% to 67%.
The business fields related to land and sea transportations will be more
opened to foreign investment, especially for these following business
fields which will be opened for 67% foreign ownership:
 The terminal supporting business
 The air cargo services
 The transportation handling services
Provide an opportunity for investors to invest and set up cold-storage
both in Java and outside Java due to the opening of a 100% foreign
ownership for this field in order to support the distribution of logistics
especially fisheries.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Reduced production cost
•
•
The Government is supporting the raw material industry, including the raw
material for pharmaceutical industry which will be opened for 100%
foreign ownership
The change of foreign ownership limitation in the raw material for
pharmaceutical industry will make the price of raw material for
pharmaceutical is lower and may reduce import for the raw material
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Retail Business
• The development of technology, especially in retail business through online
system has made the transactions are becoming more effective and efficient.
• Previously, E-Commerce was allocated to 100% domestic ownership. But now
the revised Negative List will open this business field to foreign ownership as
follows:
 E-Commerce is open for 100% foreign ownership with Partnership scheme.
 Marketplace, Daily Deals, Price Grabber:
 Investment value ≤ Rp 100 Billion, opened for 49% foreign ownership
 Investment value > Rp 100 Billion, opened for 100% foreign ownership
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Support for the Creative Industry
•
•
•
Currently, there are only 1.171 cinema in Indonesia, which 35% are located in
Jakarta. In other hand, the film industry has targeted 20 million viewers with
3.000 - 5.000 cinemas
The revised negative list support the upstream and downstream of film
industry, therefore these following business fields will be opened for 100%
shares ownership:
- Film technical services
- Film making
- Film distributors
- Recording Studio
- Cinema
However, the cinema must also comply to the regulations which set 60% local
content/movie in the cinema.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Improvement of the worker/manpower
•
In order to increase the quality of the workers and manpower in
Indonesia, the foreign ownership in Trainings (Pelatihan Kerja) are
increased from 49% to 67% foreign ownership.
•
The improvement of the workers’ education will also make
Indonesian people are more competitive compared to other
countries, especially for labor intensive industry.
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Tourism Sectors
•
•
Indonesian Government has targeted 272 million tourist for 2016. (12 million foreign
tourists and 260 million local tourists)
Therefore the negative list has been revised to attract more investors in tourism
sectors, as follows:
up to 67% foreign ownership
up to 70% foreign ownership
No
No
Business Fields
Business Fields
1
Private Museum
1
Catering service
2
Historical heritage managed by private sector
2
Billiard, Bowling, Lapangan GolfGolf Court
3
Tourism Travel Bureau
3
Convention, Exhibition, and Incentive Tour Services)
4
One-Star Hotel
4
Motel
5
Two-Star Hotel
6
Non-star hotel
7
Other Accomodation Sevices (Motel)
1
Restaurant
8
Art Impresario Service
2
Bar
9
Singing Room/ Karaoke
3
Cafe
10
Nature tourist object business outside conservation areas
4
Sport Stadium: Swimming, Soccer, Tennis, Sport Center
100% ownership
No
Business Fields
The Investment Coordinating Board of the Republic of Indonesia
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Presidential Regulations Number 44 of 2016
Renewable Energy
To support the 35 Giga Watts electricity programs and the
renewable energy, the revised negative list also increased the
foreign ownership for Geothermal Power Plants (≤ 10 MW
capacity) from 49% to 67% shares ownership.
The Investment Coordinating Board of the Republic of Indonesia
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Thank You
Terima Kasih
Indonesia Investment Promotion Centre (IIPC)
Badan Koordinasi
Penanaman Modal
(BKPM)
Indonesia Investment
Coordinating Board
Jln. Jend. Gatot Subroto No. 44
Jakarta 12190 - Indonesia
t . +62 21 525 2008
f . +62 21 525 4945
e . [email protected]
Contact Centre :
0807 – 100 – 2576 (BKPM)
www.bkpm.go.id
The Investment Coordinating Board of the Republic of Indonesia
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