Indonesia — new negative investment list

On 23 April 2014, the Indonesian government revised the negative investment list, which contains the full list of Indonesian business sectors that are subject to foreign ownership restrictions or closed to foreign investment altogether.

This is the first major revision of the negative list since 2010 and its ostensible purpose is to promote foreign investment in Indonesia, particularly in anticipation of the advent of the ASEAN Economic Community, which is expected to be implemented in 2015.

As expected, while some business sectors have, as a result of the recent revision, become more open to foreign investment, others are now subject to increased foreign ownership limits and still others have become entirely closed to foreign investment. That said, the overall trend is one of liberalisation and, although there have been mixed reviews among observers, general feedback has been positive, with organisations such as KADIN (the Indonesian Chamber of Commerce and Industry) and APINDO (the Indonesian Employers Association) welcoming the revisions…

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