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Indonesia opens 35 sectors to foreigners, closes 20 others for FDI sectors in Indonesia

Tuesday, May 31, 2016

 Coordinating Economic Minister Darmin Nasution ( right ) talks to Cabinet Secretary Pramono Anung ( left ) before a press conference on the 10th economic policy package at the State Palace in Jakarta, on Feb. 11. The latest package includes the revised negative investment list.

Thirty five industrial sectors have been removed from the negative investment list ( DNI ), while 20 others have been added. The measures are stipulated in the 10th economic policy package released on Thursday.

Coordinating Economic Minister Darmin Nasution said the policy was aimed at boosting investment, both domestic and foreign direct investment ( FDI ), while providing protection to small and medium enterprises ( SMEs ).

“It means that 100 percent foreign ownership is allowed in the 35 sectors that have fully opened up to FDI,” said Darmin during a press conference at the State Palace in Jakarta on Thursday.

The 35 sectors include cold storage, sports centers, film processing labs, crumb rubber industry, warehousing, tourism, e-commerce with a marketplace value above Rp 100 billion, toll road operators, telcom device certification, non-hazardous waste management and raw medicine materials.

Plantation firms with more than 25 hectares of land integrated with a processing plant will also be allowed foreign ownership of up to 95 percent. Seven types of businesses, including leasing companies, will be allowed 85 percent ownership.

Businesses allowed up to 67 percent ownership include job training, travel bureaus, golf course developers, flight logistics supporting businesses, health care, private museums, catering, convention center and exhibition, consulting and construction businesses with contract values above Rp 10 billion, as well as telcom network providers with integrated telcom services.

The seven sectors allowed 51 percent foreign ownership include natural tourism management. Meanwhile, 32 sectors were still pegged with 49 percent maximum foreign ownership such as acupuncture, land transportation and high voltage electric installation.

“This policy is not liberalization but an effort to modernize our economy by encouraging SMEs and national companies to improve creativity, innovation and technology,” Cabinet Secretary Pramono Anung said.

On the new list, 20 industrial sectors were closed or restricted sectors for FDI, added by four new sectors from previously 16 restricted sectors under the preceding 2014 DNI regulation.

“In the revised DNI, we have added utilization of natural coral for aquariums, souvenirs and accessories. It is closed to any kind of investment for environmental protection,” Darmin added.

The remaining 19 industrial sectors, he continued, were reserved for SMEs, including pre-design and consulting services, architectural design services and architectural services. In addition, no SMEs were open to foreigners, along with businesses with investment value of less than Rp 10 billion.

Reference: Ayomi Amindoni & Anton Hermansyah The Jakarta Post Jakarta | Thu, February 11 2016.
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One Stop Services by Indonesian Investment Coordinating Board


One Stop Services (OSS) organizes complete Licensing and Non-licensing procedure of investment in single office that has the authority from related technical institutions or ministries to issue the Licensing and Non-licensing documents on particular sectors.
Implementation of OSS in the field of investment by the Government enforced by BKPM at the Central Government level / PDPPM (The Regional Investment Board) at the provincial government level / PDKPM (The District / City Investment Board) at the level of local government district / municipality, on the basis of devolution / delegation of authority from the technical Minister / Head of the Non-department Organization (Government Officials) which has the authority over government affairs in the field of investment.
Implementation of OSS is dedicated to provide easy, fast, precise, accurate, transparent and accountable Licensing and Non-licensing services. In addition to support the BKPM tasks in order to tailor competitive investment climate to support the quality of national economy.
A. Working Mechanism
  1. Investors requiring licensing and non-licensing investment for operational implementation of business activity shall take a queuing number, except for service complaints
  2. Investors requiring investment information service shall contact Help Desk service.
  3. Investors requiring services on licensing and non-licensing application submission shall contact Front Officer Investment Services.
  4. Investors requiring submission service on Investment Activity Report (LKPM) and request cancellation / revocation of investment licenses shall contact Front Officer Implementation and Monitoring Investment.
  5. Investors requiring service on submission of non-licensing investment application that is not delegated to the Chairman of BKPM shall contact Front Line Ministries Officer.
  6. Investors requiring service on retrieval licensing and non-licensing investment shall contact Administrative BKPM.
All services are conducted in the framework of the implementation of the OSS in the field of investment in BKPM is free of charge
B. Help Desk & Complaints Service
  1. Help Desk Services implemented by Front Officer of Investment Climate Development.
  2. Front Officer of Investment Climate Development responsibles to provide information and consulting services for all types of investment services carried out in the framework of the implementation of the OSS functions in BKPM.
  3. Complaints Service id conducted by officials who are assigned duties based on a warrant.
  4. Complaints Service Desk responsibles to receive complaints on all types of investment Licensing and Non-licensing services undertaken in the framework of the implementation of the OSS functions in BKPM.
C. Electronic Invesment Licensing Service System (SPIPISE)
Implementation of the OSS in the field of investment should be conducted by e-government through electronically integrated system on investment information and licensing. In the era of information transparency on Licensing and Non-licensing investment services to the user, implementation of OSS in BKPM comes with  online tracking system.
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Mining Properties for Sales


Mining Properties For Sale (in Indonesia)

(Looking for Genuine Buyer Investor Only)

1)Coal Mining Property For Sale :

 Catagory: T O (For Take Over)
Description: Direct contact to Miner/Owner PT. ARIESTINDO . Location : Mantewe, Tanah Bumbu, South Kalimantan  
Status : Exploration Permit (IUP Eksplorasi) and Production Permit (IUP OP)-OK for 153 hectares, CNC Certificate, not overlap), copy document upon request. 
Total Area:700  Hectares more (153 hectares already possessed production permit, Clean and Clear certificate by ESDM and ready for mining production, the rest +573 hectares exploration permit-OK and progress to production permit). Site map  upon request.
Deposit survey: copy document upon request.
Deposit Estimate: 5-7 million Metric Tonnes (for 153 hectares area)
Calorific Value: 5,800-7,000. 
Infrastructure already available. Next/nearby coal properties already production. 
Distance from Mining-Port : 70 Km (11km site to main road and 60 km to batulicin port )
Distance to Anchorage (mother vessel) : 2-3  hours  
Offer  Price for T O (take over) : US$ 2.7 Million.
 2) Coal Mining Property  for J O (Joint Operation)
Area: 6,000 Hectares. Direct contact to owner.
Location: Tabalong/Tanjung City, South Kalimantan, nearby/next to PT ADARO coal  properties.
Estimated deposit: 120 million metric tonnes.
3) Zircon and Gold Mining Property (direct contact to owner/miner)
Area Width: 5,000 Hectares.
Location: Gunung Mas, Central Kalimantan
Status: IUP Eksplorasi (Exploration Permit), progress permit to IUP OP (Production Permit) should be paid by Buyer/Investor.
Shareholdership (Shares  70%) = US$550,000,-
Data boring: 500 hectares = 240,000 tonnes; Gold 15m3 = + 12 grams.
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Mining Properties in Indonesia

Indonesia mining project business in South Kalimantan and East Kalimantan are profitable which has proven result/output successfully exported worldwide. However we still can consult any other opportunities for any prospective Investor interested in and willing to find more opportunities related thereto.

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FDI In Indonesia For Whom ?

Who wants to know about FDI In Indonesia ? of course any FDI Investor who is interested in investing FDI In Indonesia, they want to know Indonesia’s opportunities profile, investment opportunity, and other relevant information related thereto.

Further, after survey and they will decide whether they need to follow up pre-feasibility study or not, in case they have decided to perform pre-feasibility study for any particular FDI in Indonesia opportunity, then they look for any local support.
We regularly produce and upload reports i.e. e-books and e-articles related to FDI In Indonesia.

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Foreign Direct Investment (FDI) in Indonesia Up 30% in 2nd Quarter

Indonesia’s FDI (foreign direct investment) rose 30.2 percent on an annual basis to Rp 56.1 trillion ($5.92 billion) in the second quarter, the government said on Wednesday, showing the G-20 member remains a magnet for investors in a troubled global economy. 
The year-on-year increase in FDI in Indonesia was stable with the 30.3 percent reported for the first quarter of 2012, mostly supported by investment in mining and base chemicals.
Indonesia FDI, bolstered by upgrades to investment grade status by two rating agencies, has drawn strong portfolio and foreign direct investment (FDI) in recent years. 
Firms have been looking to tap abundant natural resources and booming middle class spending in Southeast Asia’s largest economy.
Last year, Indonesia’s total FDI was a record Rp 175.3 trillion, up 18 percent from 2010, and government policymakers have been relying on continued investment and domestic consumption to keep the economy growing by more than 6 percent year at a time exports are flagging.