Client Alert – New Draft of Presidential Regulation on Investment Business Activities: A Game Changer?
It is expected that the enactment of Law No. 11 of 2020 on Job Creation on 2 November 2020 (Omnibus Law), which among others amended Law No. 25 of 2007 on Investment, will attract foreign and domestic investment activities and increase the ease of doing business in Indonesia. As the name tells, it is further aimed to create a significant number of new jobs.
The hot-button issue on foreign investment activities in Indonesia will always be the notion of businesses that are opened or closed for foreign investment (or famously referred to as the Negative Investment List), that for many years are provided in the form of a Presidential Regulation.
Last week, to carry out the mandate of the Omnibus Law, the Government of Indonesia has publicly circulated the New Draft of Presidential Regulation on Investment Business Activities (PR Draft) which is hoped to replace Presidential Regulation No. 44 of 2016 (PR 44/2016). The PR Draft substantially reduces the numbers of businesses subject to a certain amount of maximum foreign ownership; from 350 to only 48. If the PR Draft is passed in its current version, it will likely become a game changer!
We set below the details on the key points of the PR Draft, which may be of relevance for businesses operating in Indonesia.
See our newsletter here: Client Alert on Presidential Regulation Draft on Investment Business Fields
Client Alert on Presidential Regulation Draft on Investment Business Fields