INDONESIA: Gov’t to open rubber manufacturing sector to foreign investors

Indonesia is set to allow foreigners to wholly own rubber manufacturing companies in an attempt to attract more foreign investment, said Franky Sibarani, chairman of Investment Coordinating Board (BKPM).

The move is part of the upcoming revision to the so-called negative investment list, which restrict foreigners ownership in sectors deemed strategic or crucial to the national interest.

Franky said that in a meeting of Coordinating Ministry for Economic Affairs, the government decided to allow foreigners to own rubber manufacturing companies, as long as they are willing to take up 30 % raw material supply from local farmers.

Coordinating Economics Minister Darmin Nasution said earlier that the government would open up to 17 business sectors to foreigners.

Source: Daily “The Jakarta Globe”, Jakarta; 19 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)