VIVAnews - The Investment Coordinating Board (BKPM) assures that the government will soon finish revising the president’s negative investment list (DNI).
Five sectors involving education, telecommunication, logistic, creative industry and health will be affected by the revision, especially in terms of foreign ownership.
BKPM Head Gita Wiryawan said the board was looking forward to finalize the list as soon as possible.
“The revision draft is still being finalized. It will be completed in one or two months,” Wiryawan says in a press release received by VIVAnews on Monday, January 18.
However, a slight dispute is still going on the Ministry of Information. The Department of Communication and Information insists that the sector will remain restricted for foreign parties despite opposing opinions from several ministers. “We’ll be seeking the best ways and solution,” Wiryawan says.
In health sector, the government will be giving a chance to foreign hospitals to compete against the local ones. Foreign hospitals, which are only allowed to be built in Medan and Surabaya, will be opened all over Indonesia. “The new Health Minister is really open-minded,” she says.
Wiryawan expects the establishment of foreign hospitals in Indonesia will reduce the amount of foreign exchange spent by the Indonesians on seeking medications overseas.
According to her, there are so many Indonesian citizens who go to Singapore, Hong Kong and other countries for medical treatment. “This is too bad,” she said.
She went on by saying that the policy is an attempt to boost the quality and the capability of national hospitals. However, foreign hospitals in Indonesia must not be fully owned by foreign investors. The government will only allow 67 percent foreign ownership of the hospital and supporting facilities.
The government will also cut back the employment of foreign medical workers in a certain time range which aims at allowing the transfer of technology and the capability of Indonesian medical workers. “It’s also based on nationalism spirit. The technicality, such as the time range, is still being discussed by the Health Minister,” Wiryawan said.
As for the creative industry, especially films, the government will still limit foreign share ownership by 49 percent. The policy will also be applied to logistic sector. “The old policy allows foreign investors to hold bigger amount of shares while in the new one, they will be only up to 49 percent,” she said.
The company which will be exempted is the TNT, who had been granted a license before the DNI was issued.
For the education sector, the government will be giving a chance to foreign capital establishment. But, due to the Education Legal Agency Law requiring educational institutions to be non-profit, the government will open the door for foreign investors through a new agency as a managerial assistance which will be outsourced by local educational institutions.
“One of the alternatives worth considering is for managerial interests in outsourcing. So, the Education Legal Agency will outsource other companies for managerial interest. These companies will be the ones that will be given foreign funds,” she said.
The new regulation is expected to enable the government acquiring funds for educational infrastructure development without violating education laws.
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Translated by: Nataya Ermanti
VIVA.co.id
27 April 2024
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