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Indonesia Foreign Investment – New Negative List

New Negative List


The Government has enacted a new Negative List under Presidential Regulation No. 39 of 2014, which became effective on 24 April 2014 ("New Negative List"), although the New Negative List became publicly available only on 2 May 2014. The New Negative List revokes the previous Negative List stipulated under Presidential Regulation No. 36 of 2010.


As required under Law No. 25 of 2007 on Capital Investment ("Investment Law"), the Government is required to determine the lines of business that are closed to all investment (foreign and domestic), and the lines of business that are open for investment (foreign and domestic) subject to the fulfillment of certain requirements. In principle, but not necessarily in practice, all lines of business are open to foreign investment, except for those sectors specifically mentioned in a "negative list" and other laws and regulations. This is now specifically recognized in article 3 of the New Negative List (and is one reason why the list is now longer). 


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