On 18 May 2016, the Indonesian Government enacted Presidential Regulation No. 44 of 2016, which sets out the new negative investments list (the “2016 Indonesia Negative Investment List”) and revokes the 2014 Negative List. This Regulation is known as Regulation of the President of the Republic of Indonesia Number 44 Year 2016.
The following below are the lists of business fields that are closed to and business fields that are open with condition to investment.
Agricultural Sector
| No. | Business Field | Conditions |
| Seeding/seedling business of staple food crops in an area of more than 25 Ha | ||
| 1 | Rice | Foreign capital ownership: Max.49% |
| 2 | Corn | Foreign capital ownership: Max.49% |
| 3 | Soybean | Foreign capital ownership: Max.49% |
| 4 | Groundnut | Foreign capital ownership: Max.49% |
| 5 | Mung Bean | Foreign capital ownership: Max.49% |
| 6 | Other food crops (cassava and sweet potato) | Foreign capital ownership: Max.49% |
| Business with the same or exceeding a certain
capacity |
||
| 7 | Industry of crude vegetable and animal oils
(edible oils) |
a. Foreign capital ownership: Max.95%
b. Minimum of 20% raw materials sourced from own plantation |
| 8 | Copra, fiber, shell charcoal, dust, nata de coco
Industry |
a. Foreign capital ownership: Max.95%
b. Minimum of 20% raw materials sourced from own plantation |
| 9 | Coconut oil Industry | a. Foreign capital ownership: Max.95%
b. Minimum of 20% raw materials sourced from own plantation |
| 10 | Palm oil Industry | a. Foreign capital ownership: Max.95%
b. Minimum of 20% raw materials sourced from own plantation |
| 11 | Peeling, cleaning, drying, and sorting of
plantation products Industry (cocoa beans and coffee beans) |
a. Foreign capital ownership: Max.95%
b. Minimum of 20% raw materials sourced from own plantation |
Forestry Sector
| No | Business Field | Conditions |
| 1 | Hunting in Hunting Parks and Hunting Blocks
business |
Foreign capital ownership: Max.49% |
| 2 | Wildlife and plant breeding and conservation
institutions |
Foreign capital ownership: Max.49% |
| 3 | Nature tourism business in the form of provision of ecotourism facilities, activities and services within forest areas including water tourism, natural adventure tourism and cave tourism | a. Foreign capital ownership: Max.49%
b. Foreign capital ownership Max.70% for investors from ASEAN countries |
| 4 | Development of technology utilization on plant and wildlife genetics | Statement on partnership with
accredited institution/ laboratory in Indonesia/national research and development institutions appointed by the Ministry of Environment and Forestry
|
| 5 | Exploitation of timber forest products of natural forest | 100% domestic capital |
| 6 | Procurement and distribution of forest plant seeds
and seedlings (export and import of forest plant’s seed and seedling) |
100% domestic capital |
| 7 | Catching and propagating plants and wildlife from natural habitat | a. Domestic 100% local capital
b. Recommendation from the Ministry of the Environment and Forestry |
Marine Affairs and Fisheries Sector
| No | Business Field | Conditions |
| 1 | Capture fishery using fishing ship in Indonesian water territory and open sea | 100% domestic capital, and subject to a special license from the Ministry of Marine Affairs and Fisheries on fishery resources allocation and fishing coordinates |
| 2 | Sea sand extraction | 100% domestic capital |
| 3 | Oil and gas construction services: Platform | Foreign capital ownership Max.75% |
| 4 | Oil and gas construction services: spherical tank | Foreign capital ownership Max.49% |
| 5 | Oil and gas construction services: Onshore oil and gas upstream production installation | Domestic capital: 100% |
| 6 | Oil and gas construction services: offshore pipeline installation | Foreign capital ownership Max.49% |
| 7 | Onshore oil and gas drilling services | Domestic capital: 100% |
| 8 | Power plant transmission | Foreign capital ownership: Max.95% (Maximum 100% for the purpose of KPS during concession period) |
| 9 | Power installation consultation | Foreign capital ownership: Max.95% |
| 10 | Electric power installation operation and maintenance | Foreign capital ownership: Max.95% |
| 11 | Electric power installation examination and testing on installation of high/extra high voltage electric power supply or utilization | Foreign capital ownership: Max.49% |
| 12 | Electric power installation examination and testing on low/medium voltage electric power utilization | Domestic capital 100% |
Industrial Sector
| No | Business Field | Conditions |
| 1 | Automobile Maintenance and repair | Foreign capital ownership: Max.49% |
| 2 | Clove cigarette industry | Subject to the recommendation from the Ministry of Industry:
a. For business expansion, it is only cigarette industry that already has Industrial Business License (IUI) in similar business fields; or b. For new investment, only small and medium-scale cigarette industry that partners with large-scale cigarette industry that already has Industrial Business License in similar business field |
| 3 | Cyclamate and saccharine industry | According to the requirement stipulated by BPOM and Ministry of Trade |
| 4 | Special ink industry | a. Operational license from BOTASUPAL/BIN; and
b. Recommendation from the Ministry of Industry |
| 5 | Lead smelting industry | Recommendation from the Ministry of Environment and Ministry of Industry for industry using used accu raw materials |
Public Works Sector
| No | Business Field | Conditions |
| 1 | Construction service (construction implementation service) using advanced technology and/or high risk and/or the work value is more than IDR 50,000,000,000 (CPC 511, 512, 513, 514, 515, 516, 517, and 518) | a. Foreign capital ownership: Max.67%
b. Foreign capital ownership by ASEAN countries’ investors:Max.70% |
| 2 | Business service / Construction consultant service using advanced technology and/or high risk and/or the work value is more than IDR 10,000,000,000 (CPC 8671, 8672, 8673, 8674, and 9403 | a. Foreign capital ownership: Max.67%
b. Foreign capital ownership by ASEAN countries’ investors:Max.70% |
| 3 | Drinking water business | Foreign capital ownership: Max.95% |
Transportation Sector
| No | Business Field | Conditions |
| 1 | Cargo Land Transportation | Foreign capital ownership: Max. 49% |
| 2 | Special cargo land transportation | Foreign capital ownership: Max. 49% |
| 3 | International sea transportation | Foreign capital ownership: Max. 49% |
| 4 | International passenger transportation (excluding cabotage) | Foreign capital ownership by ASEAN countries’ investors: Max.70% |
| 5 | International freight overseas transportation (excluding cabotage) | Foreign capital ownership by ASEAN countries’ investors: Max.70% |
Financial Sector
| No | Business Field | Conditions |
| 1 | Investment finance company | Foreign capital ownership: Max.85% |
| 2 | Working capital finance company | Foreign capital ownership: Max.85% |
| 3 | Multi-purpose finance company | Foreign capital ownership: Max.85% |
| 4 | Loss insurance company | Foreign capital ownership: Max.80% |
| 5 | Life insurance company | Foreign capital ownership: Max.80% |
| 6 | Non-bank foreign exchange trader | Domestic capital: 100% |
Health Sector
| No | Business Field | Conditions |
| 1 | Patent medicine industry | Foreign capital ownership: Max.85% |
| 2 | Medical equipment testing institution | Foreign capital ownership: Max.67% |
| 3 | Acupuncture service facility | Foreign capital ownership: Max.49% |
| 4 | Pest control/Fumigation service | Foreign capital ownership: Max.67% |
| 5 | Traditional medicine processing | Domestic capital: 100% |
| 6 | Traditional medicine/natural extract industry business | Domestic capital: 100% |
| 7 | Hospital | a. Foreign capital ownership: Max.67%
b. Foreign capital ownership from investors from ASEAN countries: Max.70% c. Can be conducted in all capital cities of provinces in Eastern Indonesia, except Makassar and Manado |
| 8 | Medical equipment supplier | a. Foreign capital ownership: Max.49%
b. Subject to a special license from the Ministry of Health |
| 9 | Bank and laboratory of tissue and cellular | Subject to a special license from the
Ministry of Health |
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