Indonesia: Kadin calls for delay of 100% foreign ownership ruling

• Nov 22, 2018

The Indonesian Chamber of Commerce and Industry (Kadin) has called on the government to delay the issuance of a regulation that would allow foreign investors to own 100 percent shares of their business units in the country.

“There are some points that should be the government’s attention, particularly those related to the negative investment list [DNI] in 2018,” Kadin chairman Rosan P. Roeslani said in Jakarta on Wednesday as quoted by kontan.co.id.

“The investment policy closely relates to the business world and Kadin is an institution for businesspeople. Therefore, the policy needs input from the business world.”

Coordinating Economic Minister Darmin Nasution announced on Monday that the government would allow foreign investors to have full ownership in 25 business units, among the 54 that were removed from the Negative Investment List (DNI), a stipulated in the 16^th economic policy package.

Rosan said Kadin understood the urgency to relax the negative investment list as part of efforts to boost direct foreign inflow amid the country’s widening current account deficit and the failure to boost exports.

However, in response to the government’s policy, Kadin would hold a meeting with representatives of 124 business associations on Thursday to discuss businesspeople aspirations on the policies scheduled to be issued this week.

“The detail of our input would be conveyed [to the government] after we discuss them with the associations. Therefore, we call on the government to delay the DNI announcement,” he said, adding that usually, businesspeople were not invited to discuss the new economic package. (bbn)

Source: http://www.thejakartapost.com/news/2018/11/22/kadin-calls-for-delay-of-100-foreign-ownership-ruling.html