BPKM Negative List 2018: Understanding the New Regulations

As a business owner, it’s important to stay up-to-date with the latest regulations and policies that can impact your operations. One such regulation that you need to be aware of is the BPKM Negative List 2018. This list outlines the industries and businesses that are restricted or prohibited for foreign investment in Indonesia. In this article, we’ll take a closer look at what the BPKM Negative List 2018 entails, how it affects your business, and what steps you can take to comply with these regulations.

What is the BPKM Negative List 2018?

The BPKM Negative List 2018 is a policy issued by the Indonesian Investment Coordinating Board (BKPM) which outlines the industries and businesses that are restricted or prohibited for foreign investment in Indonesia. This list was updated in 2018 following the issuance of Presidential Regulation No. 44 of 2016 on the List of Business Fields Closed and Open with Conditions to Investment.

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The main objective of this policy is to protect Indonesia’s national interests and promote economic growth by controlling foreign investment in certain sectors. The BPKM Negative List 2018 is divided into two categories: Negative Investment List and Priority Investment List.

What is the Negative Investment List?

The Negative Investment List consists of industries and businesses that are completely closed to foreign investment or only open with certain restrictions. This list includes industries related to national defense, security, and strategic natural resources. Other industries that are included in the Negative Investment List are those that have a significant impact on the economy and are vital for the livelihoods of the Indonesian people.

Some of the industries that are included in the Negative Investment List are:

  • Telecommunications
  • Media
  • Broadcasting
  • Transportation
  • Postal services

What is the Priority Investment List?

The Priority Investment List consists of industries that are open to foreign investment but with certain conditions. These conditions can include the minimum amount of investment required, the percentage of ownership that can be held by foreign investors, and other criteria to ensure that the investment benefits the Indonesian people. The industries that fall under the Priority Investment List include those that are considered to have a high strategic value for the country.

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Some of the industries that are included in the Priority Investment List are:

  • Energy and mineral resources
  • Food and agriculture
  • Tourism
  • Infrastructure
  • Healthcare

How does the BPKM Negative List 2018 affect your business?

If you are a foreign investor looking to invest in Indonesia, you need to be aware of the BPKM Negative List 2018. This policy outlines the industries and businesses that are open to foreign investment and the conditions that need to be met for investment to be allowed. Failure to comply with these regulations can result in penalties and even the revocation of your investment license.

For businesses that are already operating in Indonesia, the BPKM Negative List 2018 may not have a direct impact on your operations. However, it’s important to stay up-to-date with the latest policies and regulations to ensure that you are complying with all laws and regulations.

What steps can you take to comply with the BPKM Negative List 2018?

If you are a foreign investor looking to invest in Indonesia, the first step is to check the BPKM Negative List 2018 to see if your industry or business is open to foreign investment. If it is, then you need to make sure that you meet all the conditions outlined in the Priority Investment List.

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If your industry or business is included in the Negative Investment List, then you should consider investing in a different industry or country. However, if you believe that your business is vital for the livelihoods of the Indonesian people, then you can submit a proposal to the government for an exception to be made.

In conclusion, the BPKM Negative List 2018 is an important policy that all foreign investors in Indonesia need to be aware of. By understanding the regulations and complying with them, you can ensure that your investment is protected and that you are contributing to the growth and development of Indonesia’s economy.

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