The New Positive List
A Significant Liberalisation of Foreign Investment in Indonesia
Following the new investment regulatory framework introduced by Law No.11 of 2020 on Job Creation (known as the “Omnibus Law”), the President of the Republic of Indonesia issued Presidential Regulation No.10 of 2021 on Investment Lines of Businesses (“New Positive List”). The New Positive List was enacted on 2 February 2021. However, the official text was only made publicly available in the last few days. It will take effect on 4 March 2021, being 30 days as of its enactment date.
In line with the objectives of the Omnibus Law to promote investment and create job opportunities through economic growth, the New Positive List marks a significant opening up of many business sectors in Indonesia, including by lifting the maximum foreign ownership restriction in many business sectors which were previously regulated under Presidential Regulation No.44 of 2016 (known as the “Negative List”).
This publication sets out some main provisions of the New Positive List and brief comparison between the New Positive List and the now revoked Negative List.