Negative List BPKM 2015: Understanding the Regulation

Indonesia is a country that is rich in natural resources and has a large population. However, this has not always translated to economic development, and the government has been working to improve the business climate in the country. One of the measures that has been put in place is the Negative List BPKM 2015. This regulation outlines the sectors that are open to investment and those that are closed to foreign investment. In this article, we will examine the Negative List BPKM 2015 in detail.

What is the Negative List BPKM 2015?

The Negative List BPKM 2015 is a regulation that outlines the sectors that are closed to foreign investment. It was issued by the Indonesian Investment Coordinating Board (BPKM) in 2015, replacing the previous Negative List that had been in place since 2010. The aim of the Negative List is to protect domestic businesses and ensure that they are not crowded out by foreign competitors.

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What are the Sectors Closed to Foreign Investment?

Under the Negative List BPKM 2015, there are several sectors that are closed to foreign investment. These include:

  • Small-scale retail businesses
  • Food and beverage businesses with capital of less than IDR 10 billion
  • Traditional markets
  • Construction services for buildings with a height of less than 45 meters
  • Cinemas
  • Massage parlors and spas
  • Tailor shops and laundromats

These are just some of the sectors that are closed to foreign investment. The full list can be found on the BPKM website.

What are the Sectors Open to Foreign Investment?

While there are several sectors that are closed to foreign investment, there are also many sectors that are open to foreign investment. These include:

  • Construction services for buildings with a height of more than 45 meters
  • Telecommunications
  • Tourism
  • Transportation
  • Financial services
  • Healthcare
  • Education

These are just some of the sectors that are open to foreign investment. Again, the full list can be found on the BPKM website.

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Why Was the Negative List BPKM 2015 Introduced?

The Negative List BPKM 2015 was introduced to protect domestic businesses and ensure that they are not crowded out by foreign competitors. It was also introduced to encourage investment in certain sectors that are considered to be important for the country’s economic development. By opening up these sectors to foreign investment, the government hopes to attract more foreign capital and create jobs.

What are the Benefits of the Negative List BPKM 2015?

The Negative List BPKM 2015 has several benefits for Indonesia. Firstly, by protecting domestic businesses, the government is ensuring that they have a level playing field and are not unfairly disadvantaged by foreign competitors. This helps to promote economic growth and create jobs, which is essential in a country with a large population like Indonesia.

Secondly, by opening up certain sectors to foreign investment, the government is attracting more foreign capital into the country. This can help to improve infrastructure, create jobs, and boost the overall economy.

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What are the Challenges of the Negative List BPKM 2015?

While the Negative List BPKM 2015 has many benefits, it also has some challenges. One of the challenges is that it can be difficult to enforce. It is not always clear whether a business is a foreign-owned business or a domestic business, and this can lead to confusion and disputes.

Another challenge is that the Negative List can be seen as protectionist, which can discourage foreign investment. Some investors may be put off by the restrictions imposed by the Negative List and choose to invest in other countries instead.

Conclusion

The Negative List BPKM 2015 is an important regulation in Indonesia that outlines the sectors that are open to investment and those that are closed to foreign investment. While it has many benefits, it also has some challenges. However, overall it is a positive step towards improving the business climate in Indonesia and encouraging economic growth.

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