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Client Update: Foreign investment changes in Indonesia

May 2014

In brief: Some Indonesian business sectors are closed to foreign investment, while others are subject to foreign ownership limits. There have been some changes to these foreign investment restrictions under Indonesia's widely anticipated revised Negative Investment List, which became effective on 24 April. The revisions reflect the intention of the Indonesian Government to prepare for a more open economy whilst preserving certain sectors for domestic investment. Overall, there has been a liberalising trend, with a number of sectors becoming more open for foreign investment. However, there are now some business sectors that are subject to foreign investment limits for the first time, some that have become subject to increased foreign ownership limits and some that have become closed to foreign investment altogether.

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