JAKARTA: Indonesia has opened up 20 sectors that were previously closed off for foreign investors on the country's negative investment list.Among the sectors that now allow 100 per cent foreign ownership are warehousing and cold storage facilities.
"We want the cold storage industry to grow particularly in the east (Indonesia). And we are preparing to develop special economic zone for that purpose," said Darmin Nasution, Indonesian chief economic minister.
Mr Darmin on Thursday (Feb 11) announced much-anticipated changes to the country's negative investment list. It covers more than 700 sectors and was last updated in 2014.
In an apparent effort to provide better healthcare for Indonesians, Jakarta now allows up to 67 per cent foreign ownership in its healthcare services sector that was previously closed off to foreigners.
Mr Darmin said the measure would lower prices of medicine and health products. It is also meant to anticipate the competition in Indonesia brought about by the ASEAN economic community.
"These policies are not a form of liberalisation but are efforts to develop the nation's potentials in geo-politics and geo-economy. Among other things, it will uplift the creativity of the SMEs, cooperatives and state enterprises, synergise , innovate, absorb new technologies in an open era" said Mr Darmin.
The land transport sector such as train services can now have up to 49 per cent foreign investment - another clear signal from President Joko Widodo's administration that it wants to expand the rail network across the archipelago.
And the local film industry - including distribution - looks set to get a boost from foreign investors as it can now be fully owned by foreigners.
However, 21 sectors such as the defence industry are still not open to foreigners, up from 20 previously. The new addition to the list spans industries related to coral reefs.
- CNA/ec
Source: Indonesia opens up 20 sectors to foreign investors
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