Draft Presidential Regulation on 2016 Negative Investment List

Along with the recent launch of a tenth economic-policy package, the government is in the process of preparing a Draft Presidential Regulation on the List of Business Fields Which Are Closed and Conditionally-Open for Investment (“Draft Regulation”).The Draft Regulation is being prepared to anticipate the highly competitive regional marketplace which has resulted from the inauguration of the ASEAN Economic Community (AEC). [1] To achieve this objective, the Draft Regulation revises components of the 2014 Negative Investment List (Daftar Negatif Investasi– “DNI”) which currently is regulated under Presidential Regulation No. 39 of 2014 (“2014 Regulation”). [2] The Draft Regulation is of relevance to existing and prospective investors, both foreign and Indonesian, especially small- and medium-scale enterprises (SME) and cooperatives (“UMKMK”).SECTORS CLOSED FOR INVESTMENTA DNI consists of two main components, namely: