With a population of more than 250 million, Indonesia is an attractive country for investors, particularly those interested in the distribution, retail and franchise sectors. But 2014 was a nervous time for new and existing investors in Indonesia, many of whom delayed any major actions to see how the country's legislative and presidential elections would play out.
Indonesia's Construction Services Development Institute has issued a new regulation that amends the requirements for the issuance of the Business Entity Certificate for integrated construction service companies.
Indonesia's Agrarian Law provides that foreigners can only acquire right to use (hak pakai) title for land if they reside in Indonesia. If foreign investors wish to engage in business in Indonesia, they must establish a foreign capital investment (PMA) company.
Indonesia is one of the world's most volcanically active countries and among the countries with the greatest geothermal energy potential. Dwindling production of traditional energy sources such as oil and gas has the Government of Indonesia seeking alternatives to maximize national energy production.
SSEK contributed the Indonesia chapter to the 2014 edition of Getting the Deal Through: Oil Regulation. SSEKs' Fitriana Mahiddin and Syahdan Z. Aziz provide a comprehensive overview of oil regulation in Indonesia.
A new Indonesian Ministry of Trade regulation requires that certain goods manufactured in Indonesia and certain imported goods traded in Indonesia carry a label in the Indonesian language. It is seen as a tool to ensure the right of consumers to receive clear information about the goods they purchase.
The Indonesian Government has released a new list of business fields that are closed to investment and business fields that are conditionally open to investment. The long-awaited New Negative List, increases allowed foreign ownership levels in several key industries, including the health sector.