Indonesia eases restrictions on foreign investment
According to media reports, Indonesia has released new regulation increasing opportunities for foreign investors to invest in various sectors. The new regulations include easing restrictions on operations in sectors such as tourism, transportation and movie theatres. The move is said to be part of the country’s efforts to reduce dependency on raw commodity exports and to develop the manufacturing and tourism sectors.
According to the new regulation, the foreign ownership limit for maritime cargo handling at ports, several specific airport services and telecommunication services and internet provision was raised to 67% compared with the previous 49% limit. Meanwhile, restaurants, the film industry, cold storage, waste management and pharmaceutical raw materials sectors were reportedly opened to foreign ownership. US companies have reportedly expressed willingness to enter several of these sectors. However, Indonesia is not likely to attract greater flows of foreign direct investment over the short term, according to analysts.