DRAFT NEW NEGATIVE LIST: MORE BUSINESSES OPEN FOR FOREIGN INVESTORS (Indonesia)

Author: Ichsan Montang

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.31 (January, 2021)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction
As a follow up to the amendment of Law No. 25 of 2007 on Investment (“Investment Law”) under the Omnibus Law, the government recently issued the draft new negative list as the implementing regulation to be applied for foreign investment in Indonesia. Negative list is a list of shareholding requirements and restrictions for all business activities in Indonesia. The latest negative list is regulated under the Presidential Regulation No. 44 of 2016 on List of Business Fields that are Closed to and Business Fields that are Open with Conditions to Investment (“Negative List”).

One of the most significant amendment of the Investment Law is of Article 12 that sets the basis for the issuance of the Negative List. We set out below the provision of Article 12 before and after the amendment:

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