Indonesia BKPM considering changing name of its negative investment list

Indonesia BKPM considering changing name of its negative investment list

Franky Sibarani. (bkpm.go.id)

This will support the readiness of Indonesia to face the AEC and other free trade agreements."
Jakarta (ANTARA News) - The Indonesia Capital Investment Coordinating Board (BKPM) is considering changing the name of its Negative Investment List (DNI) into the Investment Guide to provide certainties for investors on the business sectors where they can invest.

BKPM Head Franky Sibarani, in a written statement here Saturday, said that the term DNI was confusing because it left an impression that sectors listed in it were all closed to foreign investors, when in fact the list also covered investment sectors which were open to them with majority foreign share ownership.

"In Presidential Decree 39/2014, there are 67 sectors of investment where foreign investors are allowed to own majority share ownership (over 50 percent). In the presidential decree, only 12 sectors are closed," Franky said.

The change in the term was important to help create a positive perception of the investment climate in Indonesia, he said. This is in line with the spirit of revisions of the government regulations to provide bigger opportunities to investors but without ignoring the capability of Indonesian citizens at home.

"The term Investment Guide is more neutral in the sense that before an investor is willing to make investment he or she could refer to the Investment Guide," he said.

The BKPM has received 454 inputs from technical ministries and non-ministries as well as the private sector and other stake holders.

In the meantime, the realization of investment in the third quarter of 2015 increased in three sectors.

The increased realization of investment in three priority sectors in the third quarter of 2015 has helped prepare Indonesia even more to face the ASEAN Economic Community (AEC), Franky earlier said.

The three sectors are the export-oriented industry, import substitution industry and the mineral resources downstream businesses.

"The increase in the realization of investment in the three sectors underlines the governments efforts to boost the competitiveness of our industry and our export-oriented efforts. This will support the readiness of Indonesia to face the AEC and other free trade agreements," Franky said.

Based on the BKPM data, the value of investments in the export-oriented industry in the January-September 2015 period totaled Rp25.7 trillion, up 10.4 percent compared to the level achieved in the same period in the previous year, he added.

Investment in the import substitution industry in the January-September 2015 period was recorded at Rp34.5 trillion, up 15.9 percent from that in the corresponding period a year earlier.

In the downstream industry of the mineral resource sector, investment was recorded at 33.2 trillion, showing an increase of 66.8 percent as compared to that in the corresponding period last year.

The implementation of the AEC was now staring them in the face and it was an issue that should be given attention, according to Franky.

"One thing that should be given attention to is that we should not allow ourselves to become a big market for products of other countries. We should be able to take advantage of the export opportunities which will become bigger and bigger when the market opens up," Franky said.
(Uu.A014/INE/KR-BSR/H-YH)

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