Government Tightens Foreign Investment in Horticulture

TEMPO.CO, Jakarta - The government has tightened the ownership of foreign capital investment in horticulture to adjust with the law. The regulation was included in the Negative Investment List (DNI) that has been finalized and only needs the President's signature.

"With the 2010 Law Number 13 about Horticulture, the shareholding in business will be revised in the Presidential Regulation Number 36," Investment Coordinating Board (BKPM) chief, Mahendra Siregar, said at the office of the Coordinating Ministry for Economic Affairs yesterday.

According to Mahendra, the six types of businesses that become restricted are horticultural germination, horticultural cultivation, horticultural processing industry, horticultural research and horticultural laboratory quality test, horticultural agro-tourism and other horticultural services.

"It was initially regulated that foreign capital ownership is at most 95 percent. Now, it has been changed to 30 percent in accordance with the 2010 Law Number 13 about Horticulture," he said.

Other than that, Mahendra said for trade sector, the alternative domestic capital ownership is 100 percent. That condition is in accordance with the regulation from the Futures Exchange Supervisory Board (BAPPEBTI) about the prohibition of foreign investment for traders in alternative trade.

"The condition for foreign capital is 95 percent in accordance with BAPPEBTI’s regulation," he said.

ANGGA SUKMA WIJAYA