Several sectors will be opened up to 100 percent foreign ownership.
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KATADATA - The government will soon conclude its discussions on the revision of the Negative Investment List (DNI). The revision will open up opportunities for foreign investors to invest in various business sectors in Indonesia. 

Coordinating Minister for Economic Affairs Darmin Nasution said that the list of foreign investment restrictions is divided into three categories: investment with foreign ownership of up to 49 percent, up to 51 percent and up to 67 percent. In addition, several sectors will be opened up to 100 percent foreign ownership. "If foreign ownership of up to 100 percent is permitted, that (business sector) will automatically be excluded from the DNI," he said in Jakarta, Wednesday (2/10). 

Darmin, however, was unwilling to share details of the sectors that will be opened to 100 percent foreign ownership. "There were so many changes, it’s difficult to pick out one. This is a package actually, a great package." Opening the door wide to foreign investment will make Indonesia a more attractive investment proposition.

Darmin confirmed that the government would announce the revised DNI as a whole, not in parts. Earlier, Cabinet Secretary Pramono Agung said that the revised DNI would be included in the tenth economic policy package, which will be launched in two weeks. "Now that we have entered the AEC (ASEAN Economic Community), we need to make some revisions to provide certainty and to make investment in Indonesia more attractive (and) easier," he said.

Although a cabinet meeting yesterday afternoon was set to finalise the revisions to the DNI, an announcement might not be immediate, said Darmin, adding that more revisions will be made if necessary.

(Read: Government Expects to Conclude DNI Discussion in Two Weeks)

Earlier, President Joko Widodo had asked that ministers immediately conclude their discussions on the revisions to the DNI. He asked the Coordinating Minister for Economic Affairs, Head of the Investment Coordinating Board (BKPM) and the Ministry of Trade to explore the possibility of speeding up the revision to the list of businesses closed and open to foreign investment in the e-commerce sector. The government plans allow foreign ownership of giant e-commerce companies but they will be subjected to taxes.   

Minister of Communications and Informatics Rudiantara said that the government is discussing 31 proposed initiatives related to the preparation of Indonesia’s e-commerce road map. "(This sector) was previously closed (to foreign investment), but it is now being opened up to help promote foreign direct investment," he said.

(Read: Foreign Investors Allowed to Hold Majority Shares in Infrastructure)

The government is also considering allowing foreign investors to hold majority shares in airport, port and toll road management services. Foreign investors will be able to hold 67 percent of shares in these businesses. However, to protect the country’s air and maritime sovereignty, ownership of airports and ports will remain closed to foreign investment

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