Jakarta, Feb 18 (Antara) ¿ Indonesia has opened 35 business sectors to US investors that were earlier found on the Negative Investment List (DNI), as announced during President Joko Widodo's (Jokowi's) tour of the United States this week.
The government has revised the DNI and included it in the tenth economic policy package announced on Thursday, February 11. With their removal from the DNI, the 35 economic sectors are now open to 100 percent foreign investment.
Indonesian Trade Minister Thomas Lembong told US investors in San Francisco on Tuesday that the revision of the DNI opens significant investment opportunities for US companies in Indonesia.
These sectors included crumb rubber, cold storage, tourism businesses such as restaurants, cocktail lounges, cafés, recreation centers, arts, and entertainment, sports centers, and the film industry.
Thomas also used the forum to explain improvements in the country's export and import trade policies.
Also, during an Economic Ministers' Roundtable meeting in San Francisco on Tuesday with 16 companies, the government elaborated on the DNI and investment opportunities. Additionally, the government explained the steps it has taken to improve its trade and investment climate.
In the meeting, Indonesia was represented by Franky Sibarani, the chief of the Capital Investment Coordinating Board (BKPM), and Trade Minister Thomas Lembong, according to a press statement issued by the BKPM and received by Antara on Wednesday.
Franky Sibarani and Thomas Lembang were accompanying President Jokowi, who was in the United States to attend the US-ASEAN Summit in Sunnylands, California, held on February 15-16.
Franky Sibarani said the revision of the DNI will provide opportunities for foreign investors to invest in a number of economic sectors that have been closed to foreign investment.
The sectors included pharmacy, creative economy (theater and films) and seaport facilities.
He stressed that the listing of seaport facilities in the DNI was revised to reduce logistic costs, which were viewed as being too high.
"The opening of such business areas to foreign investors is expected to further cut down logistics costs and encourage efficiency in the country," said Franky.
According to him, the government has taken two main steps with regard to the DNI that could reduce logistics cost.
The first is related to distributors affiliated to production. They have been taken off the DNI and are now open to 100 percent foreign investment. However, distributors which are not affiliated to production are open to the extent of 67 percent foreign investment, up from 33 percent previously.
The second step is related to land and sea transportation infrastructure, now opened further to foreign investment. These are expected to bring new technology and make the logistic system more efficient.
"So, five business sectors, namely port facilities, supporting terminals, air cargo expedition services, transportation facility services and air transportation supporting facility services will gain. Foreign ownership in these sectors will now be allowed up to 67 percent, up from 49 percent previously as regulated in Presidential Decree No. 39/ 2014," he said.
In an earlier meeting, the BKPM lured US investors to invest in Indonesia's meat and seafood processing industry.
The BKPM chief, Franky, revealed that a meeting was organized on the sidelines of President Joko Widodo's to San Francisco, the United States, to attract investors. He said the US food companies, which were invited to invest in Indonesia's eastern regions, had, so far, imported seafood from Indonesia.
"With the exclusion of the cold storage business from the Indonesian Investment Negative List (DNI), foreign companies can come to Indonesia and make investment in the downstream seafood industry," remarked Franky.
One of the 35 sectors removed from the DNI is cold storage, which holds importance for several seafood processing companies for preserving their seafood products
Based on Presidential Regulation No. 39/2014, the cold storage business is confined to 33 percent foreign investment in Sumatra, Java, and Bali and 67 percent in Kalimantan, Sulawesi, Nusa Tenggara, Maluku, and Papua.
With its removal from the DNI, the cold storage sector is now open to 100 percent foreign investment in all regions in Indonesia.
Franky noted that the positive aspect of the plan of the US food companies is that they will invest in the eastern regions in Indonesia.
"This is a positive step for the government's program to encourage equitable investment and economic growth in the Indonesian eastern regions," he noted.
The BKPM chief stated that the companies had visited Indonesia several times, and they are now finalizing their preparations to make investment in Indonesia.
"The companies paid attention to regulations, land ownership, and exports in Indonesia," he added.
Based on data at the BKPM in 2015, the realization of investment in the food industrial sector, which is included in the labor-intensive priority scale, amounted to Rp43.5 trillion, with 2,184 projects.***3***(A014/INE)
(T.A014/A/BESSR/A. Abdussalam) 18-02-2016 19:23: |
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