DRAFT NEW NEGATIVE LIST: MORE BUSINESSES OPEN FOR FOREIGN INVESTORS (Indonesia)

Introduction
As a follow up to the amendment of Law No. 25 of 2007 on Investment (“Investment Law”) under the Omnibus Law, the government recently issued the draft new negative list as the implementing regulation to be applied for foreign investment in Indonesia. Negative list is a list of shareholding requirements and restrictions for all business activities in Indonesia. The latest negative list is regulated under the Presidential Regulation No. 44 of 2016 on List of Business Fields that are Closed to and Business Fields that are Open with Conditions to Investment (“Negative List”).

One of the most significant amendment of the Investment Law is of Article 12 that sets the basis for the issuance of the Negative List. We set out below the provision of Article 12 before and after the amendment:

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