The Indonesian government has recently taken a significant step by reducing the Negative Investment List (DNI). Previously, 100 industries were closed to foreign investment, but now only six industries remain off-limits to foreign investors. This bold move further emphasizes that Indonesia is highly welcoming to global investors.

Investment Minister and Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, claims that Indonesia is now more open than ever to foreign investors. He made this statement at the Indonesia-Europe Investment Summit 2024 in Jakarta.

Rosan highlighted that the Indonesian government has streamlined several regulations and simplified existing policies to attract more investors to the country.

Since 2021, Indonesia has been revising its Negative Investment List (DNI). As a result, the number of industries closed to foreign investment has been reduced from 100 to just six.

What is the Negative Investment List?

The Negative Investment List (DNI) is a list of business sectors created by the government to inform potential investors about sectors that are prohibited in Indonesia and the regulations related to them, particularly concerning the maximum shareholding allowed.

Certain businesses are not permitted for investors. These restricted sectors are listed in the Indonesian Negative Investment List.

For investment activities in Indonesia, investors must comply with all relevant regulations, including the ones related to the DNI.

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The DNI exists to protect Indonesia’s economy while also providing more business opportunities for investors.

Over time, the DNI may change in line with government regulations. Investment has a complex impact, not only driving national economic growth but also absorbing labor, thereby reducing unemployment.

By shortening this list, Indonesia aims to offer more room for foreign investors to invest in other, more open sectors.

Indonesia Cuts Down the Negative Investment List

The Indonesian government continues to demonstrate its commitment to creating a more favorable investment climate by reforming investment policies. Investment Minister and BKPM Head Rosan Roeslani revealed that Indonesia has made significant changes to its negative investment list to attract more foreign investors.

Previously, 100 industries were closed to foreign investment, but now only six industries remain restricted. However, further details on which specific sectors remain closed have not yet been provided.

“We revised our Negative Investment List (DNI) from the end of 2021 through 2022. From over 100 industries previously closed to foreign investment, only six industries remain closed. Along with that, we have simplified many policies, regulations, and so on,” said Rosan at the Indonesia-Europe Investment Summit 2024 on Monday (9/12).

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Rosan emphasized that reducing the Negative Investment List proves the government’s seriousness in opening Indonesia’s economy to the global market. He also pointed out that this reform is part of a larger strategy to achieve the target of 8% economic growth.

“Investment will play a very important role in reaching the 8% growth target, aside from domestic consumption,” he said.

This step is seen as a strategic move because investment plays a vital role in Indonesia’s economic structure. Currently, investment contributes about 24% to 25% of national economic growth, following domestic consumption, which accounts for 53% to 54%.

“The investment target for 2024 is around USD 100 billion, and this number will continue to rise until 2030. This also includes the target of job creation over the next five years,” explained Rosan.

Cutting down the Negative Investment List opens new opportunities for foreign investors to participate in Indonesia’s rapidly growing economy. This policy is expected to bring long-term benefits to the business sector, create jobs, and accelerate development.

However, it is crucial to continue monitoring the implementation of this policy to ensure that all investments are made responsibly, balancing economic progress with environmental sustainability.

If you plan to take advantage of these investment opportunities, whether by expanding your business or starting a new project, Bizindo is ready to assist you with the licensing and legal process in Indonesia. We offer professional services to ensure that everything runs smoothly and in compliance with the regulations in Indonesia. Contact us today!