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Negative Investment List

On 18 May 2016, the Indonesian Government enacted Presidential Regulation No. 44 of 2016, which sets out the new negative investments list (the “2016 Indonesia Negative Investment List”) and revokes the 2014 Negative List. This Regulation is known as Regulation othe President of the Republic of Indonesia Number 44 Year 2016. 

The following below are the lists of business fields that are closed to and business fields that are open with condition to investment. 

 

Agricultural Sector 

No. Business Field Conditions 
 Seeding/seedling business of staple food crops in an area of more than 25 Ha  
1 Rice Foreign capital ownership: Max.49% 
2 Corn Foreign capital ownership: Max.49% 
3 Soybean Foreign capital ownership: Max.49% 
4 Groundnut Foreign capital ownership: Max.49% 
5 Mung Bean Foreign capital ownership: Max.49% 
6 Other food crops (cassava and sweet potato) Foreign capital ownership: Max.49% 
 Business with the same or exceeding a certain 

capacity 

 
7 Industry of crude vegetable and animal oils 

(edible oils) 

a. Foreign capital ownership: Max.95% 

b. Minimum of 20% raw materials sourced from own plantation 

8 Copra, fiber, shell charcoal, dust, nata de coco 

Industry 

a. Foreign capital ownership: Max.95% 

b. Minimum of 20% raw materials sourced from own plantation 

9 Coconut oil Industry a. Foreign capital ownership: Max.95% 

b. Minimum of 20% raw materials sourced from own plantation 

10 Palm oil Industry a. Foreign capital ownership: Max.95% 

b. Minimum of 20% raw materials sourced from own plantation 

11 Peeling, cleaning, drying, and sorting of 

plantation products Industry (cocoa beans and 

coffee beans) 

a. Foreign capital ownership: Max.95% 

b. Minimum of 20% raw materials sourced from own plantation 

 

Forestry Sector 

No Business Field Conditions 
1 Hunting in Hunting Parks and Hunting Blocks 

business 

Foreign capital ownership: Max.49% 
2 Wildlife and plant breeding and conservation 

institutions 

Foreign capital ownership: Max.49% 
3 Nature tourism business in the form of provision of ecotourism facilities, activities and services within forest areas including water tourism, natural adventure tourism and cave tourism a. Foreign capital ownership: Max.49%  

b. Foreign capital ownership Max.70% for investors from ASEAN countries 

4 Development of technology utilization on plant and wildlife genetics Statement on partnership with 

accredited institution/ laboratory in Indonesia/national research and development institutions appointed by the Ministry of Environment and Forestry 

 

5 Exploitation of timber forest products of natural forest 100% domestic capital 
6 Procurement and distribution of forest plant seeds 

and seedlings (export and import of forest plant’s 

seed and seedling) 

100% domestic capital 
7 Catching and propagating plants and wildlife from natural habitat a. Domestic 100% local capital  

b. Recommendation from the Ministry of the Environment and Forestry 

 

Marine Affairs and Fisheries Sector 

No Business Field Conditions 
1 Capture fishery using fishing ship in Indonesian water territory and open sea 100% domestic capital, and subject to a special license from the Ministry of Marine Affairs and Fisheries on fishery resources allocation and fishing coordinates 
2 Sea sand extraction 100% domestic capital 
3 Oil and gas construction services: Platform Foreign capital ownership Max.75% 
4 Oil and gas construction services: spherical tank Foreign capital ownership Max.49% 
5 Oil and gas construction services: Onshore oil and gas upstream production installation Domestic capital: 100% 
6 Oil and gas construction services: offshore pipeline installation Foreign capital ownership Max.49% 
7 Onshore oil and gas drilling services Domestic capital: 100% 
8 Power plant transmission Foreign capital ownership: Max.95% (Maximum 100% for the purpose of KPS during concession period) 
9 Power installation consultation Foreign capital ownership: Max.95% 
10 Electric power installation operation and maintenance Foreign capital ownership: Max.95% 
11 Electric power installation examination and testing on installation of high/extra high voltage electric power supply or utilization Foreign capital ownership: Max.49% 
12 Electric power installation examination and testing on low/medium voltage electric power utilization Domestic capital 100% 

 

Industrial Sector 

No Business Field Conditions 
1 Automobile Maintenance and repair Foreign capital ownership: Max.49% 
2 Clove cigarette industry Subject to the recommendation from the Ministry of Industry:  

a. For business expansion, it is only cigarette industry that already has Industrial Business License (IUI) in similar business fields; or  

b. For new investment, only small and medium-scale cigarette industry that partners with large-scale cigarette industry that already has Industrial Business License in similar business field 

3 Cyclamate and saccharine industry According to the requirement stipulated by BPOM and Ministry of Trade 
4 Special ink industry a. Operational license from BOTASUPAL/BIN; and  

b. Recommendation from the Ministry of Industry 

5 Lead smelting industry Recommendation from the Ministry of Environment and Ministry of Industry for industry using used accu raw materials 

 

Public Works Sector 

No Business Field Conditions 
1 Construction service (construction implementation service) using advanced technology and/or high risk and/or the work value is more than IDR 50,000,000,000 (CPC 511, 512, 513, 514, 515, 516, 517, and 518) a. Foreign capital ownership: Max.67%  

b. Foreign capital ownership by ASEAN countries’ investors:Max.70% 

2 Business service / Construction consultant service using advanced technology and/or high risk and/or the work value is more than IDR 10,000,000,000 (CPC 8671, 8672, 8673, 8674, and 9403 a. Foreign capital ownership: Max.67%  

b. Foreign capital ownership by ASEAN countries’ investors:Max.70% 

3 Drinking water business Foreign capital ownership: Max.95% 

 

Transportation Sector 

No Business Field Conditions 
1 Cargo Land Transportation Foreign capital ownership: Max. 49% 
2 Special cargo land transportation Foreign capital ownership: Max. 49% 
3 International sea transportation Foreign capital ownership: Max. 49% 
4 International passenger transportation (excluding cabotage) Foreign capital ownership by ASEAN countries’ investors: Max.70% 
5 International freight overseas transportation (excluding cabotage) Foreign capital ownership by ASEAN countries’ investors: Max.70% 

 

Financial Sector 

No Business Field Conditions 
1 Investment finance company Foreign capital ownership: Max.85% 
2 Working capital finance company Foreign capital ownership: Max.85% 
3 Multi-purpose finance company Foreign capital ownership: Max.85% 
4 Loss insurance company Foreign capital ownership: Max.80% 
5 Life insurance company Foreign capital ownership: Max.80% 
6 Non-bank foreign exchange trader Domestic capital: 100% 

 

Health Sector 

No Business Field Conditions 
1 Patent medicine industry Foreign capital ownership: Max.85% 
2 Medical equipment testing institution Foreign capital ownership: Max.67% 
3 Acupuncture service facility Foreign capital ownership: Max.49% 
4 Pest control/Fumigation service Foreign capital ownership: Max.67% 
5 Traditional medicine processing Domestic capital: 100% 
6 Traditional medicine/natural extract industry business Domestic capital: 100% 
7 Hospital a. Foreign capital ownership: Max.67%  

b. Foreign capital ownership from investors from ASEAN countries: Max.70%  

c. Can be conducted in all capital cities of provinces in Eastern Indonesia, except Makassar and Manado 

8 Medical equipment supplier a. Foreign capital ownership: Max.49%  

b. Subject to a special license from the Ministry of Health 

9 Bank and laboratory of tissue and cellular Subject to a special license from the 

Ministry of Health 

 

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Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia

Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.

 

How we can help you:

 

We will call you back, please click below link and make appointment with our Sales consultant:

BOOK NOW

Step 1- Listen to your Business plan and Relocation needs.

Step 2- Analysis your Tax Planning

Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa

Step 4- Arrange for your Spouse and Children Visa

Step 5- Assist as your company to hire staffs and handle all HR matters

Step 6- Every financial year end, we assist you with your yearly OSS Finanical and Tax Complianc

Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.

 

Get in Touch with Us Today.

Paul Hype Page

Website: https://www.paulhypepage.co.id

Posted on April 3, 2019 at 2:32 pm
Categories: Business Opportunities in Indonesia
4 comments

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[…] Shares of PMA can be owned up to 100% by the foreign investors, but subject to the Negative Investment List   […]

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[…] The percentages of maximum foreign shareholdings are subject to the Negative Investment List.   […]

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