Indonesia: more moves to promote investment
Indonesia continues to ease foreign investment regulations and promote its potential overseas. In latest news, President Susilo Bambang Yudhoyono visited Saudi Arabia on the weekend to highlight its potential as a food source for Gulf states. The Gulf region, which currently operates no agricultural business in Indonesia, is looking increasingly for additional food sources and Indonesia has 7.7 million hectares of unused land in need of development, the President said.
Foreign investment limits and environmental regulations to protect rainforests have often stalled large scale agricultural projects, though the government will “issue regulations” to smooth the way.
Indonesia is also gradually easing limits on foreign investment in other sectors, allowing extra finance to flow into construction, health care and electricity generation. To the disappointment of some, though, the changes are sometimes small and the appealing cell phone tower industry will remain completely off limits to outsiders. Investment in the Postal Service will stay limited to 49%.
Preference will be given to investors from ASEAN in some sectors, such as marine cargo handling.
source & articles: The Jakarta Globe
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