Economic Policy Package X, Protect UMKM & Facilitate Foreign Investment

ByFalcon

Breaking News! Government loosened foreign ownership rules in number of business sectors. Some business sectors are opened fully for foreigners include the storage and warehousing industry (cold storage), industry of medicine raw materials, toll road concession, and the film industry.

Those Government measures become part of the Economic Policy Package X which also includes changes in the Negative Investment List (DNI). DNI revision is intended to improve the performance of the national industry to be ready to compete globally and continue to provide a guarantee of protection for the Micro Small and Medium Enterprises (UMKM) sector.

Here are list of changes in the stock composition of Foreign Capital Investment (PMA) in DNI:

  1. Horticulture cultivation, germination horticulture, etc. with fixed portion of 30%.
  2. Distributors and warehousing increased from 33% to 67%, and cold storage increased to 100%.
  3. Job training, travel bureau, golf course, supporting services of air transport, etc. increased to 67%; whereas sport centers, film processing laboratory, crumb rubber industry, etc. increased to 100%; and business fields such as acupuncture service facilities remained at 49%.
  4. The private museum, catering services, convention services, exhibition and incentive travel, etc. increased to 67% from 51%; while restaurants increased to 100%; and business fields such as natural tourism exploitation still be 51%.
  5. Business services / construction consultant services with the value of work , more than IDR 10 billion rose to 67% from the previous portion of 55%.
  6. Implementation of telecommunication network integrated with telecommunication services, etc. rose to 67% from the previous portion of 65%.
  7. Industry of medicine raw materials increased to 100% from 85% and leasing business that still in 85%.
  8. Toll road concession, institution establishment of telecom equipment testing / lab tests, etc. increased to 100%; while plantation with an area of ​​25 ha or more has not changed, still in 95%.

Source : Summarized from Bisnis Indonesia (12 February 2016)

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