The Indonesian government announced the 16th economic policy package late last week. This latest package is important for direct investors, including foreign investors as it includes a revision of the country's Negative Investment List (in Indonesian: Daftar Negatif Investasi), hence opening up opportunities for foreigners to invest in Indonesia. New economic package to boost investment.
The latest economic policy package also involves an expansion of Indonesia's tax holiday program and the provision of tax incentives for the newly mandated conversion of export earnings to rupiah.
The red carpet is rolled out for foreign investors as a revision to Indonesia's Negative Investment List will open up foreign ownership for the full 100 percent in 28 categories within the Standard of Industrial Classification (in Indonesian: Klasifikasi Baku Lapangan Usaha Indonesia, or KBLI). Main aim of this revision is to attract more direct investment into Indonesia, hence boosting economic activity and - preferably - leading to less need for imports in the future. New economic package to boost investment, especially when there is a trade war truce between US and China.
(source: Indonesia Investment)