Indonesia lifts some foreign investment restrictions to boost COVID-hit economy

Photo: Nick Agus Arya/Unsplash

Indonesia’s government has issued a new regulation on investment following the passage of its job creation law last year, which includes the removal of some restrictions on foreign investment in a bid to boost investment into its pandemic-hit economy.

The new rules for the law, often referred to as the “omnibus law” because it changes more than 70 laws, remove Indonesia’s negative investment list, which covers businesses not open to foreign investment, although still maintain caps on foreign investment in certain sectors.

The new rules on investment were among dozens of regulations issued by the government late on Sunday to allow the implementation of the omnibus law.

Under the new presidential regulation, the negative investment list has been replaced by a “priority list”, which offers incentives such as tax allowances or tax breaks on investments in some industries. Those businesses include coal gasification, geothermal exploration, and smelting of ores such as nickel and copper.

Indonesia’s economy contracted for the first time in more than two decades last year as household consumption slumped and businesses delayed investment due to the coronavirus pandemic.

Government officials have said they expect the omnibus law will help prop up direct investment in Southeast Asia’s biggest economy.

Tax holidays will also be offered on investments in vaccine-making industry and some other pharmaceutical sectors, as well as in the production of electric vehicles (EVs) and some EV parts, the regulation showed.

The government is also easing rules for investment in alcoholic beverages, land transportation, ship vessel traffic information systems and flight navigation, among other sectors.

The new rules will come into effect 30 days from Feb. 2.

Restrictions will remain on investments in heritage industries, including traditional shipbuilding, batik, and traditional medicine and cosmetics.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.