Four New Business Areas Open for Foreign Investment

TEMPO.CO, Jakarta - Four new business areas will be open to foreign investment following the revision of the presidential regulation on the negative list of investment, stated Chief of the Investment Coordinating Board (BKPM) Mahendra Siregar.

The four business areas comprise the transportation sector, the health sector, the tourism sector, the creative economy sector, and the financial sector, he remarked after a coordination meeting on finalizing the list of business sectors that are closed and open to foreign investors, here on Tuesday.

He added that the transportation sectors included the construction and operation of land terminals, especially public facilities in passenger terminals and public cargo terminals.

"The construction of land passenger terminals and cargo terminals, which were previously closed to foreign investment, are now open to foreign investors, with a maximum capital ownership of 49 percent, after receiving recommendations from the transport minister," he noted, as reported by Antara News.

The other business area is periodic tests on motor vehicles, with a maximum capital ownership of 49 percent, after securing recommendations from the transport minister, he said.

In the health sector, the foreign capital ownership in the pharmaceutical industry has been raised to a maximum of 85 percent, which was previously at a maximum of 75 percent, after receiving recommendations from the health minister.

In the tourism and creative economic sector, the foreign capital ownership of the ASEAN member states in the advertisement business, which was earlier exclusively reserved for domestic investors, was raised to 51 percent.

Meanwhile, the foreign capital ownership in venture capital businesses was raised to a maximum of 85 percent, which was previously at a maximum of 80 percent, based on the Presidential Regulation No. 9/2009 on Financing Institutions.

ANTARA