Indonesia opens pharmacy, power to more foreign investment

JAKARTA - Indonesia announced on Tuesday it will allow increased levels of foreign investment in the country's power plants, advertising and pharmaceutical industries as part of government efforts to boost the slowing economy.

President Susilo Bambang Yudhoyono's administration amended its "negative investment list" of sectors in which foreign investors are either barred or restricted. The list, which has existed for decades, limits foreign involvement in areas deemed sensitive.

"The commitment is to maintain Indonesia's economic growth and anticipating a slowdown in the global economy by encouraging investment, particularly in domestic and foreign investment,"Chief Economic Minister Hatta Rajasa told reporters.

Under the new policy, the government increased the maximum foreign investment in pharmaceutical companies to 85 per cent from 75 per cent and advertising to up to 51 per cent, said Investment Chief Mahendra Siregar.

The government maintained foreign investment regulations at a maximum of 49 per cent for airports and 95 per cent for toll roads.

Details for the other industries are expected to be announced later on Tuesday.