Another follow-up to the Omnibus Law was the enactment of the highly anticipated Priority Investment List under Presidential Regulation No. 10 of 2021 to replace the Negative Investment List. The new investment list significantly widens investment opportunity in Indonesia, and is designed to boost economic growth in the country.
Compared to the previous regime, all business sectors listed in the new list are open for foreign investment unless expressly declared as closed. The number of conditionally open business fields was reduced from 350 to only 46. By way of example, investment in the telecommunications, health, and trading, all of which were previously closed or capped to a certain percentage, is now 100% open.
At the same time, the Government also showed its commitment to protect the local industry by allocating 51 business fields for micro, small, and medium enterprises ("MSMEs") and cooperatives. Any investment in these fields must be conducted in cooperation with MSMEs or cooperatives.
Lastly, six business sectors are closed, and business sectors that are services in nature or fall under the defence and security framework can only be carried out by the central government.
