A top government official has confirmed plans to take as many as four business areas off the Negative Investment List (DNI), thereby making them fully open for foreign investment, namely cold storage, crane rubber, sugar and e-commerce.
"E-commerce will be open 100 per cent for foreign investment, with the partnership requirement. With regard to the marketplace, further discussions will follow, as there is a provision regarding products sold in the marketplace," Investment Coordinating Board (BKPM) chairman Franky Sibarani said on Monday.
Franky explained that start-ups with initial capital below Rp 10 billion (S$1.04 million) would remain protected, in line with Law No. 20/2008 on small and medium enterprises.
In cold storage, crane rubber and sugar businesses, meanwhile, the government would allow foreign investors to own stakes of up to 100 per cent.
A provision on (offline) retail, including department stores, supermarkets and minimarkets, meanwhile, is still being discussed by concerned ministries.
Franky said there was a possibility that the government would raise the foreign ownership cap on the three offline retail business activities.
The Trade Ministry's director general for domestic trade, Srie Agustina, said small retail business would continue to be reserved for local players.
Department store chains with fewer than 2,000 outlets, minimarkets with fewer than 400 outlets and supermarkets with fewer than 1,200 outlets are closed for foreign investment.