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Foreign Investment In Indonesia


Indonesia Negative List Based On Presidential Decree 96/2000 jo.118/2000
[ Publication date Oct 15, 2004 ]

NEGATIVE LIST

BASED ON PRESIDENTIAL DECREE 96/2000 jo.118/2000


ATTACHMENT I :

LIST OF BUSINESS FIELDS ABSOLUTELY CLOSED FOR INVESTMENT

AGRICULTURAL SECTOR
  1. Cultivation and processing of marijuana and the like

MARINE AND FISHERY SECTOR

  1. Collection / utilization of sponge

INDUSTRIAL AND TRADING SECTOR

  1. Industries producing chemicals harmful to the environment , such as penta chlorophenol, Dichloro Trichloro Ethane (DDT), dieldrin, chlordane, carbon tetra chloride, Chloro Flouro Carbon (CFC), methyl bromide, methyl chloroform, halon etc.

  2. Industries producing chemicals stipulated in Schedule - 1 of the Chemical Weapon Convention (sarin, soman, tabun, mustard, levisite, ricine and saxitoxin)

  3. Industries producing weapons and related components

  4. Industries producing cyclamate and saccharine

  5. Industries producing alcoholic drinks (liquor, wine and drinks containing malt)

  6. Casino and gambling facilities

COMMUNICATIONS SECTOR

  1. Air traffic system providers (ATS providers), ship certification and classification inspections

  2. Management and operation of Radio Frequency Spectrum and Satellite Orbit Monitoring Stations

MINING AND ENERGY SECTOR
11. Mining of radioactive minerals


ATTACHMENT II :

LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT IN WITCH A PART OF THE SHARE ARE OWNED BY FOREIGN CITIZENS AND / OR FOREIGN BUSINESS ENTITIES

FORESTRY AND PLANTATION SECTOR
  1. Germ plasm cultivation

  2. Concession for natural forests

  3. Contractors in the field of lumbering

COMMUNICATION SECTOR

  1. Taxi / bus transportation services

  2. Small-scale sailing

TRADING SECTOR

  1. Trading and trading supporting services
    Except :
    Large-scale retailers (malls, supermarkets, departement stores, shopping centers) , wholesale trading (distributors / wholesalers, exporters and importers), exhibition / convention service providers, quality certification service providers, market research service providers, warehousing services outside seaports, and after-sale services.

INFORMATION SECTOR

  1. Radio and television broadcasting services providers, radio and closed circuit television broadcasting services, and multimedia and printed media.

  2. Motion picture production industry (film production, film technical services, export and import film business, film distrbutors and motion picture theatre operation).


ATTACHMENT III:

LIST OF BUSINESS FIELDS OPEN TO INVESTMENT UNDER CONDITION OF A JOINT VENTURE BETWEEN FOREIGN AND DOMESTIC CAPITAL

  1. Building and operation of seaports

  2. Electricity production, transmission and distribution

  3. Shipping

  4. Processing and provision of potable water for public use

  5. Atomic power plants

  6. Medical services, including the building and operation of hospitals, medical checkups, clinical laboratories, mental rehabilitation service, public health maintenance security, rent of medical equipment, assistance services for health aid and evacuation of patients under emergency conditions, hospital management services and services for testing, maintenance and repair of medical equipment

  7. Telecommunications

  8. Regular / non-regular commercial airliners.


ATTACHMENT IV

LIST OF BUSINESS FIELDS OPEN TO INVESTMENT UNDER CERTAIN CONDITIONS

MARINE AND FISHERY SECTORS
  1. Cultivation of fish in fresh waters
    a. Open to foreign investments for freshwater turtles, nila gift, sidat, kodok lembu, fresh water giant shrimps and thillapya sp;
    b. In cooperation with small-scale fishery business

  2. Fishing of demersal fish (big fish, grouper and other sea fish)
    - except ZEEI areas of the Malacca Strait and Arafura sea


INDUSTRIAL SECTOR

  1. Industries producing wood pulp
    a. raw material obtained from imported chips or quarantee of raw material supplied from industrial timber estates (HTI)
    b. other than sulfonating and / or chlorination (C 12)

  2. Industries producing pulp made of other cellulose fibres or other materials
    - other that sulfonating and chlorination (C 12)

  3. Industries producing chloro alkali
    - other that those using mercury

  4. Processing of finished / semi-finished goods made from mangrove wood
    - raw material coming from mangrove cultivation

  5. Money printing industry
    - Operational licenses from BOTASUPAL -BAKIN and approval from Bank Indonesia required

  6. Special printing industries (postal stamps, duty stamps, Bank Indonesia negotiable papers , passports and stamped postal matter)
    - Operational licenses from BOTASUPAL - BAKIN required

  7. Milk processing industry (powder and sweetened condensed milk)
    - processing (not only repackaging)

  8. Plywood and rotary veneer industries
    - only for The Irian Jaya Province (Papua)

  9. Sawn timber industries
    a. only for the Irian Jaya province (Papua)
    b. outside the Irian Jaya province (Papua), only using logs from non natural forests

  10. Ethyl alcohol industries
    - Technical grade, being only used as raw materials and auxiliary materials of other industries.

  11. Industries producing raw materials for explosives (ammonium nitrate)
    - Only in cooperation with business entities which have secured a recommendation from the Ministry of Defense

  12. Industries producing explosives and components for industrial (commercial) use
    a. Only in cooperation with business entities which have secured a recommendation from the Ministry of Defense.
    b. Only manufacturing activities, while storage and distribution are executed by companies appointed by the government.

  13. Electricity planning and supervision consulting services
    Open to foreign investments with the provision that:
    a. PLTA (Hydro power plant) with a capacity above 50 MW,
    b. PLTU (steam power plat) with a capacity above 55 MW,
    c. PLTP (geothermal power plant) with a capacity above 55 MW,
    d. Main electrical relay station with a voltage above 500 KV,
    e. Transmission networks with a voltage above 500 KV

  14. Electricity equipment construction, maintenance, installation services, development of technology supporting the supply of electricity and testing of electricity installations.
    Open to foreign investments with the provision that:
    a. Main electrical relay stations with a voltage above 500 KV,
    b. Transmissions networks with a voltage above 500 KV

  15. Petroleum and natural gas drilling services
    Open to foreign investments with the provisions that:
    a. only for offshore drilling,
    b. especially for locations outside the Eastern Indonesia Region, must cooperate with national partners operating in a similar business field.

  16. Power plant businesses
    - Open to locations outside Java, Bali and Madura

TRADING SECTOR

  1. Restaurants
    - Open to foreign investments with the special provision that they must be located in tourism areas / zones and / or integrated with hotels

  2. Game services
    - Open to foreign investments with the special provision that they must be located in tourism areas / zones and / or integrated with hotels.

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