DNI relaxation not a threat to SMEs: Kalla

DNI relaxation not a threat to SMEs: Kalla

Vice President Jusuf Kalla gave a statement to reporters at the Vice President's Office on Tuesday (11/27/2018). (Fransiska Ninditya)

Jakarta (ANTARA News) - Vice President Jusuf Kalla reiterated that the relaxation of the List of Negative Investment (DNI) would not be a threat for domestic micro, small, and medium enterprises with the influx of foreign investment.

"No, it would not. This is just a miscommunication. I do not know about the misunderstanding. It has been discussed in the Coordinating Ministry for Economic Affairs," Kalla said here on Tuesday.

With narrower list of negative investment, he continued, it does not mean that all foreign investment can easily enter domestic market, especially in small- and medium-scale enterprises.

"For SMEs, the law has stipulated that certain fields can only be operated by SMEs. The exclusion of a business sector from the negative list would not automatically make it possible for foreign investment," he added.

The DNI relaxation is expected to increase foreign investment in the country, provide more jobs for the people, and increase tax revenue, the vice president elaborated.

Foreign firms are also expected to bring transfer of technology, which at the end would boost development of small and medium enterprises.

The government has opened a number of business areas previously closed to foreign investment, in what was called relaxation of list of negative investment.

Of the total 54 business areas on the list, 25 of them have been excluded from the list that will allow a 100 percent of foreign ownership.

Among the business areas are oil and gas construction, oil and gas sea exploration, internet and telephone services, pharmaceutical industry, and polling service.

Reporting by Fransiska Ninditya, Sri Haryati