Jakarta. The Indonesian government announced on Thursday (11/2) a new policy that will remove the foreign ownership cap on 35 businesses, including restaurants, bars, cafes and certain e-commerce companies.
The revision to the so-called negative investment list is part of government's 10th policy package aimed to attracts more investment and boost growth.
Coordinating Minister for Economic Affairs Darmin Nasution said in a press conference that the government will allow foreign investors to own a 100 percent stake in some businesses in the tourism industry. That includes restaurants, bars, cafes, art and entertainment firms and sports centers. The cap remains at 51 percent for spas.
Web-based marketplaces with a capital of more than Rp 100 billion ($7.45 million) can be wholly owned by foreigners, as well as production companies, which was previously closed to foreign investment.
Other businesses to be fully opened to foreign investors include: crumb rubber, cold storage, telecommunication equipment, testing facilities, toll road concessions, non-hazardous waste management and disposal, medicine and the manufacturing of raw materials.
"A hundred percent open for foreign investor means the investors don't need to partner with a local business. However, there are some industries related to local micro, small and medium enterprises that still require foreigners to partner up with locals," Darmin said.
The government expects foreign investors to help create more jobs and improve local companies' competitiveness in terms of creativity, innovation and the ability to absorb new technology, Darmin said.
The government will also allow foreigners to own a 67 percent stake in health support services, 49 percent in land transportation and 49 percent for the installation of high voltage electricity.