Inabuy.com - News How to Invest in Indonesia. Many things must be consider before you invest in indonesia. At this time we will inform about the rules, the regulations and top negative investment of Indonesia.
Rules and Regulations
Indonesia is one of the most attractive destinations as an investment centre owing to the vast natural resources, its land mass and availability of a major workforce. The country has been working on investment friendly policies and the reduction in bureaucracy in order to attract more investment.
Indonesia does not impose restrictions on the transfer of foreign exchange and in several sectors there are attractive tax incentives.
Before considering investing in Indonesia, it is advisable to go through the "Negative Investment List" (Daftar Negatif Investasi/DNI). This contains the full list of the business sectors that are closed to investment, being it foreign or domestic.
What is the Negative Investment List (DNI)
On May 25, 2010, the Government of Indonesia issued decrees establishing a new list of sectors that were either wholly or partially closed to private foreign and/or domestic investment called the Negative Investment List, known as the acronym DNI.
BKPM has used clear and transparent criteria to account for policy positions. Foreign investors for instance regard the formation of the DNI as an ad-hoc undertaking. But BKPM has clarified its rationale on DNI, including why it is offering a grandfathering provision and a backstop against reversion of ownership splits between foreign and domestic capital for partially closed sectors. BKPM has been focusing its efforts towards the sectors that are considered to have the largest value potential, including courier services, hospitals, creative industry, and education.
On May 25, 2010, the Government of Indonesia issued decrees establishing a new list of sectors that were either wholly or partially closed to private foreign and/or domestic investment called the Negative Investment List, known as the acronym DNI.
BKPM has used clear and transparent criteria to account for policy positions. Foreign investors for instance regard the formation of the DNI as an ad-hoc undertaking. But BKPM has clarified its rationale on DNI, including why it is offering a grandfathering provision and a backstop against reversion of ownership splits between foreign and domestic capital for partially closed sectors. BKPM has been focusing its efforts towards the sectors that are considered to have the largest value potential, including courier services, hospitals, creative industry, and education.
Special provisions or terms for certain fields of business open to capital investment must be observed by investors, both in applying for and in conduction capital investment activities in the country, as outlined in the Capital Investment Implementation Technical Guidance (Petunjuk Teknis Pelaksanaan Penanaman Modal/PTPPM).
Negative Investment List: Top 10
The "Negative Investment List" (Daftar Negatif Investasi/DNI) is a list of business sectors that are partly or fully closed to foreign investment.
The list was last revised in 2010. Below are some businesses closed to FDI.
- Alcoholic Beverage Industry
- Fisheries
- Telecommunications Towers
- Chemical Materials
- Culture and Tourism, such as Casinos.
Read also "Indonesia Regains Investment Grade" or "List of Indonesia Goverment Tender"
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