1. Drafted by Prasetyo Maulana
2. Reviews by Noverizky Tri Putra Pasaribu S.H LL.M (Adv)
The Indonesian Government has recently issued 2016 Negative List on 18 May 2016, which sets out the business sectors for foreign investor. This business sector can be divided into three part, closed sections, open partially section and fully open section. 2016 Negative List is a series of Presidential Regulations issued over time by the Indonesian Government, which sets out an evolving list of sectors that are either completely closed or partially open to foreign direct investment.
Entity licensed by the Indonesia Capital Investment Coordinating Board (“BKPM”) is capped at a certain percentage. The list of sectors described follow the classification set out in the 2015 Indonesian Standard Business Classification (“KBLI”). Negative List is not retroactive. Investments approved prior to the Negative List coming into force are not affected by the revised rules. However, bear in mind, each of the business sector has its own specific license, where this Specific license shall be governed within the boundaries of the related regulation (the adjustment shall made under the Transitional Provision).
More contents in attached file below..