Currently, the Government has officially revised the Negative Investment List (DNI) which is part of the 16th Economic Policy Package. This policy allows as many as 54 business sectors to receive Foreign Investment (PMA) with 100 percent capital ownership.
According to one source, Deputy for Commerce and Industry Coordination at the Coordinating Ministry for the Economy, Bambang Adi Winarso, explained that this addition meant that the government had opened 95 business sectors to foreign ownership from 100 percent since the issuance of Presidential Regulation (Perpres) No. 44 of 2016 concerning the list of closed business fields and the list of open business fields with requirements in the Investment Sector. This is done by the government to accelerate economic growth. Of the 54 business sectors, the government divides them into 5 main groups.
More reads: PMA Using a Virtual Office in Indonesia
Business Fields for PMA
The following is a detailed list of business fields that are 100 percent open to foreign investment:
- The field of natural tourism takes the form of exploiting ecotourism activities and services as well as facilities in forest areas
- Operation of fixed telecommunications networks
- Operation of mobile telecommunications networks
- Provision of telecommunications network content services (ringtones, premium SMS, etc.)
- Internet interconnection services (NAP) and other multimedia services
- Information service center and other telephone value added services
- Internet cafe (Internet Cafe)
- Internet access services
- Internet telephone services for public purposes
- Data communication services
- Oil and gas construction services
- Geothermal survey services
- Oil and gas drilling services at sea
- Geothermal drilling services
- Geothermal operation and maintenance services
- Cultivating coral/ornamental coral
- Tuber peeling and cleaning industry
- Fabric printing industry
- Knitted fabric industry
- Retail trade via mail order and internet
- Sawnwood industry with a production capacity of 2000 m3/year
- Wood veneer industry
- Plywood industry
- Lumber veneer laminated wood industry
- Wood chip industry
- Wood pellet industry
- Power plants above 10 MW
- Inspection and testing of electrical power installations or utilization of high/extra high power electricity
- Survey services for financing objects or monitoring inventory and warehousing
- Survey services with or without destroying objects
- Quantity survey services
- Quality survey services
- Supervision survey services for an activity process in accordance with applicable or agreed standards
- Community survey/poll and market research services
- Rental of construction and civil engineering machines and equipment
- Rental of other machinery and equipment not elsewhere classified
- Clove cigarette industry
- White cigarette industry
- Other cigarette industries
- Paper pulp industry
- Cyclamate and saccharin industry
- Crumb rubber industry
- Art gallery
- Performing arts building
- Transport of people by land mode not on routes (tourism transport and transport for certain destinations)
- Overseas sea transportation for passengers
- Work training
- Finished drug pharmaceutical industry
- Acupuncture service facilities
- Pest control or fumigation services
- Medical equipment industry: Class B (Surgical masks, syringes, patient monitors, condoms, surgical gloves, hemodialysis fluids, PACS, surgical knives)
- Medical device industry: Class C (IV Catheter, X Ray, ECG, patient monitor, orthopedic implant, contact lens, oximeter, densitometer)
- Medical device industry: Class D (CT Scan, MRI, heart catheter, heart stent, HIV test, pacemaker, dormal filler, ablation catheter)
- Tissue and cell banks and laboratories
Apart from the types of business fields above, PMA can also carry out distribution and retail businesses at the same time. The contents of the attachment to Presidential Decree No. 44 of 2016 state that distributors who are not affiliated with production in the business sector are open, namely with a maximum PMA requirement of 67 percent. Then for the Retail Business Sector it must be adjusted to the type of goods being traded.
In this way, PMA can carry out both businesses simultaneously as long as it follows the rules of Presidential Decree No. 44 of 2016. The following is a summary of the contents of the DNI Presidential Decree, which can help PT PMA pay attention to the business it will run.
MESO Serviced and Virtual Office also provides PMA, PT, CV and MSME formation services. For further information, visit www.meso.co.id, Ruangmeso Instagram, or call us on 0812 1315 4189 (Whatsapp) or 021 2789 9919 (office).
