19 lines of business allowed in certain locations only

Jakarta (Antara News) - The government has decided that 19 lines of business are open to investment only in certain locations on the basis of regional administration regulations.

"This decision is not retroactively applicable, and applied to existing companies and to those whose operating license is about to be issued, but is applied only to new investment," the Trade Minister Mari Elka Pangestu told journalists being familiarized with Presidential Decrees No 76 of 2007 and No 77 of 2007 here Wednesday.

The Presidential Decrees are follow ups on Law No. 25/2007 on capital investment.

The Presidential Decree No 76 of 2007 on criteria and conditions for lines of business closed and open to investment, comprises 10 chapters and 17 articles, while Presidential Decree No 77 of 2007 on lines of business closed or open to investment comprises 7 articles with supplements on lines of business which are closed or open to investment.

The lines of business with special arrangements including locations, include big-scale trade like shopping malls, supermarkets, departement stores, shopping centers, and hypermarkets.

Meanwhile, healthcare business undertakings which are still linked to the regulations of certain regions, namely private hospitals and the services of nurses in Medan and Surabaya, as well as healthcare support services (leasing of medical equipment) in Jakarta (national capital city).

With regard to private hospitals, up to a 65 percent foreign ownership would be allowed, but with regard to healthcare support services or medical equipment leasing, foreign ownership is limited up to 49 percent only.

These include 14 lines of business in the tourism sector, such as one-star and two-star hotels, non-star rated hotels, and other accommodation services, such as motels and lodging services, homestay and similar accommodation, catering services, spa, bars/cafes/karaoke facilities and restaurants.

In addition, recreational and entertaining businesses like recreational centers, swimming pool complexes, natural bathing centers, fishing ponds, playgrounds, bowling halls, billiards halls, night clubs, discos, massage parlors, and spa facilities.

Other lines of business in the tourism sector include inbound and outbound tour operators, professional convention organizers, event organizers, and cultural tourism.

The 14 lines of business in the tourism sector also limited foreign ownership to 50 percent.

In the agriculural sector, the lines of business where investment is based on location regulations and on regional administration rulings, include hotbeds and breeding centers with more than 125 pigs.(*)
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