Legal Alert: New Negative Investment List for Indonesia


By Dyah Soewito, Esther J. Panggabean, Bezaliel B. Erlan and Darrell R. Johnson

Presidential Regulation No. 44 of 2016 regarding the List of Business Fields That Are Closed and Business Fields That Are Conditionally Open for Investment (the “2016 Negative Investment List” or “2016 DNI”) replaces the 2014 Negative Investment List or “2014 DNI,” and was made public on May 24, 2016. The 2016 Negative Investment List refers to business lines and code numbers set forth in the Indonesian Standard Industrial Classification of 2015 (the “KBLI”).

The 2016 Negative Investment List liberalizes some areas of foreign investment in Indonesia, including foreign investment from ASEAN countries. However, it is also true that the 2016 DNI does not contain the dramatic changes that had been anticipated by some members of the foreign investment community.

SSEK provides an overview of the 2016 Negative Investment List and a comparison of some of its provisions against the 2014 DNI. We also discuss some of the policy decisions of the Indonesian Capital Investment Coordinating Board (the “BKPM”) under the prior Negative Investment List that may still be applied by the BKPM under the 2016 DNI.

To access the full Legal Alert, click on New Negative Investment List.

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