Indonesia has recently relaxed rules on foreign ownership in many sectors, with the latest additions being retail services and ports. The decision was taken as part of efforts to open up more opportunities for its economy.
investment regulations President Joko Widodo signed revised, specifying which sectors are partially closed or completely closed to foreign investors, known as the negative list of investment. " Revisions were made last week, with effect occurs immediately, according to a copy downloaded from a government website.
The government announced the revision of rules on foreign ownership in February, saying he has decided to ease restrictions on everything from food and drinks to agriculture, transport and theaters.
The decision was taken as good news for foreign companies have expressed interest in the sectors for some time. CEO of the US Chamber of Commerce, for example, was among those who gave a positive response:
"This is the first time in many years ... that Indonesia has taken steps to open investment rather than closing it, "said Mr. Lin Neumann as reported by Reuters.
However, the new regulation sets a 49 percent foreign ownership cap on small ecommerce businesses, which contradicts the earlier statement that the government would open up the sector to 100 percent foreign investment.