AN OVERVIEW OF NEW NEGATIVE INVESTMENT LIST 2016LITA PAROMITA SIREGAR

WHAT KIND OF LIMITATION?

Reserved For Or Subject To

Partnership With Local SME

As Well As Cooperatives

Foreign Ownership Limitations.

Special Licensing Requirements.

Higher Foreign Ownership In The

Context Of Cooperation Of The (ASEAN).

Location Requiremen

ts

Special Licensing

Requirements

WHAT IS NEGATIVE INVESTMENT LIST ?

“List of business field that are closed or open with limitation or requirements for foreign investment “

“Enacted through Presidential Regulation No. under Presidential Regulation No. 44 of 2016, which became

effective on 18 May 2016”

If your business fields are not listed on Negative List, then you can own 100% shares in your Foreign Investment Company

(PMA)

WHAT 2016 NEGATIVE LIST SAYS ?

Businesses open for investors

Recommendations are eliminated

Foreign shares ownership are increased in several business fields

45

83

65

WHAT 2016NEGATIVE LIST SAYS ?

Business categories are simplified. For example in contruction business

Shares ownership for ASEAN investor is increased for several business

NO. BUSINESS SECTOR BUSINESS ACTIVITIES

01. Film Production

Film Shooting Studios, Film Processing Labouratories, Film Dubbing Equipments, Film Developing and/or Duplication Equipment, Film Shooting Equipment, Film Editing Equipment, Film Subtitling Equipment, Filmmaking, Motion Picture Projection, Motion Picture Distribution, Motion Picture Advertising

02. Food and Beverages Restaurants, Cafes, Bars

03. Energy and Mineral Manufacture of Biomass Pellets for Energy

04. Public Works Operation of Toll Roads, Treatment and Disposal of Non-Hazardous Waste

05. TradeDirect Selling through a Network Developed by a Business Partner, Distribution affiliated with Production, Cold Storage, Futures Broker

06. Sports Centres Operation of: Swimming Pools, Football Stadiums, Tennis Centres, Fitness Centres, Sport Centres, Other Sport Facilities

07. Communications and Informatics

Performance of Telecommunications Equipment Testing (Laboratory Test)

08. HealthManufacturing of Drug Raw Materials, Hospital Business and/or Management Consultancy Services, Hospital Management Services, Renting of Medical Devices, Laboratories of Clinics, Medical Check-up Clinics

45 BUSINESS SECTORS OPEN FOR INVESTOR IN NEGATIVE

LIST 2016

NO. BUSINESS ACTIVITIES % OF SHARES

ALLOWED

01. Power Construction and Installation for High/Medium Voltage Electrical Installation 49%

02.Testing and Analysis of Electrical Installation for: Electrical Utility Construction High/Extra High Electrical Installation

49%

03.

Passenger Land Transport:A. On Scheduled Routes

Intercity and Interprovincial Transport Border Bus Transport In-province Intercity Transport Urban/Suburban/Rural Transport Cross-Border Transport

B. On Non-Scheduled Routes Taxi Transport Tourism Transport Specific Destination Transport Specific Area Transport

49%

04. Department Store (400 m2 – 2.000 m2 area of selling)67%

(Special License from Ministry of

Trade)

Business Sectors Previously Closed to Foreign Investment

THINGS TO RECONSIDER ON YOUR BUSINESS RELATED TO 2016 NEGATIVE LIST

Open New Business

Identify business fields that prospective in Indonesia

Existing Indonesian-Foreign OwnershipAssess the possibility of increasing shareholdings in existing

Have 100% On Your Company assess the possibility (if appropriate) to remove the small shareholdings held by Indonesian investors (e.g., where foreign investment is now open 100%).

THANK YOUAny

questions ?

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