Law 25/2007 on Capital Investment came into effect on 26 April 2007
· One law for all direct investment
· The law does not apply to indirect investment
· Equal treatment – but not equal opportunity
· Foreign capital is capital in the hands of a foreign state, a foreign citizen, a foreign company, an Indonesian company with any foreign shareholding
· Foreign investment must be through a company
· No investment approval system
· All licensing to be through one-door systems
· Regular reports to BKPM & regional authorities
· No nationalisation without compensation
· Free transfer of assets
· Tax facilities may be provided
· Immediate extension of land rights possible
· Extended visas
· Import facilities
· International arbitration of disputes with the state
· Nominee agreements re shareholding are invalid
The enabling regulations are:
· Presidential Regulation 76/2007 regarding the Criteria and Provisions for Sectors which are Closed and Sectors which are open with Stipulations
· Presidential Regulation 77/2007 regarding the List of Sectors which are Closed and Sectors which are Open with Stipulations (Negative Investment List), the regulation has been updated with Presidential Regulation 111/2007
· Presidential Regulation 90/2007 regarding BKPM
· Presidential Regulation regarding the Implementation of One Door Services
· Ministry of Finance Regulation regarding investment facilities & national industry policies
· Government Regulation regarding responsibilities of central and regional governments
Source: Presentation by Peter Fanning, Chairman IBC |
PUBLICATIONS 
INVESTMENT LAW
DOWNLOAD(S)
NEWSLETTER
Subscribe to the EuroCham E-Newsletter
EVENTS 
MEMBER ACCESS