Further Information About the Negative Investment List
As has been mentioned, the Negative Investment List restricts the permitted extent of foreign ownership in certain business fields in Indonesia. The Negative Investment List is also updated from time to time in order to better reflect the economic realities of Indonesia at the time of each update. The latest update to the Negative Investment List brought changes to the details surrounding foreign investment and ownership in the following business fields: oil and gas, pharmaceutical products, power, trading, and transportation. Business activities in some of these sectors will now be subject to tighter regulations, while those in others will face more lenient regulations, much to the pleasure of their owners.
It should be noted that PMAs which have already received the requisite approval from the Indonesian Investment Coordinating Board (BKPM) will remain unaffected by the most recent set of changes to the Negative Investment List unless the changes benefit the PMA in some manner. Such will remain the case even if the PMA is sold to another foreign individual or legal entity or in the event of an acquisition or a merger involving the PMA. However, a consolidation involving the PMA will have an effect on the company as it pertains to the Negative Investment List.
It has clearly been shown that there are advantages related to the Negative Investment List that may be gained by anyone who starts a PT or a PMA in Indonesia. Therefore, you might be interested in starting such a company there. If you are, you may proceed to contact us at Paul Hype Page & Co. Our incorporation team will help you navigate the complexities of the Negative Investment List so that you will understand all of the intricate details involved. Once your understanding in this regard has been increased, you will have more ability to run your new Indonesia-based company competently.