HOUSE WANTS REVIEW OF POLICY ON NEGATIVE INVESTMENT LIST

by Andi Abdussalam

Jakarta, Nov 22 (Antara) - The current government of President Joko Widodo aims to develop and protect micro-, small-, and medium-scale enterprises (UMKM), for which there should be no policy that could harm the interests of small businesses.          Hence, the House of Representatives (DPR) has suggested that the government review its policy that allows foreign firms to invest in certain areas, so far, designed for small businesses in the Negative Investment List (DNI).          The government recently announced its plan to issue a policy to relax the 2016 DNI that will be carried out through revision of Presidential Regulation (Perpres) Number 44 of 2017 concerning list of business fields closed to and business fields that are open with conditions to investment.          In Presidential Regulation Number 44 of 2017, which regulates the 2016 DNI, 25 business sectors in question have varying requirements for foreign capital ownership, ranging from 49 percent to 95 percent.          With the issuance of the XVI Economic Policy Package and revision of Perpres Number 44 of 2017, the government has decided to allow foreign investors to have full ownership in 25 business sectors in the DNI.