2016 Negative Investment List

After a lengthy revision process, the government has finally issued Presidential Regulation No. 44 of 2016 on the List of Business Fields Which Are Closed and Conditionally Open to Investment, commonly known as the Negative Investment List (Daftar Negatif Investasi– “2016DNI”). [1] The ultimate aim of the 2016 DNI is to attract more investment to Indonesia and increase the country's competitiveness, in terms of both the ASEAN Economic Community and the global economy, by offering better protection for strategic economic sectors and small- and medium-scale enterprises and cooperatives (“UMKMK”). [2] In order to achieve this objective, the 2016 DNI revises various components of the 2014 DNI which were regulated under Presidential Regulation No. 39 of 2014 (“2014 DNI”). [3] The 2016 DNI is of relevance to both existing and prospective investors, be they foreign or Indonesian.CLASSIFICATION OF BUSINESS FIELDS OPEN TO INVESTMENTThe 2016 DNI sets out three main Indonesian investment fields, namely: [4]