THE FOREIGN INVESTMENT OF INDONESIA MATTERS PART 1

As the growth of world`s trading  and globalization era of economy   keep moving ,it has made Indonesia become one of interesting  countries for  investment. The government  of republic of Indonesia  then  understand   this situation should be utilized wisely and fairly. The goal to get  the advantage  as much as possible  and  to meet the risk at minimum level has  become a nation simultaneous homework for every element in Indonesian. These are several points of which must be underline by foreign investment (referred as F.I) and company of  foreign investment (referred as CFI)  if they want to run the business in  Indonesia.
1.	The F.I  is able to conduct by business entities or individual .
2.	The F.I can be  a portofolio  of which taken place  in Indonesia`s  stock exchange or  directly in real sector by forming  a CFI. and taking part by foreigner investor   as the share holder.
3.	The  company of F.I   must obtain the license of business permit and other license if necessary  from  Indonesia coordinating body of investment to start and run the business.
4.	The license of business permit is valid for 30 (thirty)  years, can be  extended if the F.I meets the requirement of laws and regulation
5.	The  C.F.I of which then be established must fully or almost full  run  in Indonesia  and situated in Indonesia territory.
6.	There are four  major business fields classification which must be addressed by F.I and CFI as the number 7,8,10 and 11 as these business fields classification have specific notice.
7.	Prohibited in any manner to invest  in the of  negative infestation list of Republic of Indonesia  as mention below
	NO.			SECTOR			BUSINESS FIELDS			KBLI
	7.1.			Agriculture			Marijuana Cultivation			01289
	7.2.			Forestry			5.2.1.	Capturing of Fish Species as Stated in Appendix I    Convention on International		01701
							2.2	Trade in Endangered Species of Wild Fauna and Flora     (CITES)		03119
							2.3	The use (removal) of coral/atoll from nature for  construction material/lime/calcium and souvenir/jewelry, also live or dead coral (recent dead coral) from nature.		03119
	7.3.			Industry			7.3.1.	Alcohol Beverage Industry (Liquor, Wine, and Malt  Containing Beverages)		11010 11020 11030
							7.3.2	Mercury processed Chlorine Alkali Maker Industry		20111
							7.3.3	Chemical Material Industry that can damage the     environment, such as: - Halon and others - Penta Chlorophenol, Dichloro Diphenyl    Tricholoro Elhane (DDT), Dieldrin,   Chlordane, Carbon Tetra Chloride, Methyl                  Choloroform -Methyl Bromite, Chloro Fluoro Carbon (CFC).		20114 20119
							7.3.4	Chemical Material Industry Schedule 1 Chemical    Weapon Convention (Sarin, Soman, Tabun Mustard, Levisite, Ricine, Saxitoxin, VX, etc)		20119
	7.4			Transportation			7.4.1	Providing and Implementation of Land Terminals.		52211
							7.4.2	Implementation and Operation of Weight Stations.		52219
							7.4.3	Implementation of Motor Vehicle Type Tests.		71203
							7.4.4	Implementation of Motor Vehicle Periodic Tests.		71203
							7.4.5	Telecommunication/Supporting Facility of Shipping.		52221
							7.4.6	Navigation		52221
							7.4.7	Vessel Traffic Information System (VTIS) Air Traffic Guiding Service.		52230
	7.5			Communication and Informatics			Management and Implementation of Radio Frequency and Satellite Orbit Spectrum Monitoring Stations.			61300
	7.6			Culture and Tourism.			7.6.1		Public Museums.	91021
							7.6.2		Historical and Ancient Heritage (temple, castle,           epigraphy, remains, ancient buildings, etc).	91023
							7.6.3		Residential/Traditional Environment.	91023
							7.6.4		Monuments.	91023
							7.6.4		Gambling/Casinos.	92000
8.	The government of indonesia close  the line of business  of weapon production, ammunition, detonator, and  war equipment for  investment
9.	The below lists are the  closed list of F.I  of 100%  foreign investment  as these line of business  are holding  the public  interest.
	9.1		Ports.
	9.2		Production ,transmission  and distribution of electricity  for public
	9.3		Telecomunication.
	9.4		Sailing.
	9.5		Aviation.
	9.6		Drinking water.
	9.7		Public railways .
	9.8		Nuclear power plant.
	9.9		Media .
10.	The business field for small enterprise are still available for  CFI. by partnership  between them.
11.	Obligate to fulfill the minimum of F.I capital limit which set by the laws and regulation of the government of republic of Indonesia.
12.	Obligatory to report  the business gradually to the Indonesia coordinating  body of investment
13.	Accentuate  the local manpower ,except for the level of director . It is  the investor authority to set the board of directors.
14.	Avoid the monopoly of  business mainly  when the line of business are served for small enterprise.
15.	The government of republic of Indonesia  ensures no nationalization  of   F.I.  any delinquency by F.I be processed by laws and open to fair arbitration.
16.	Repatriation for currency (transfer) for FI dan CFI are allowed under the republic of Indonesia laws and regulation of investment.
This brief passage may serves light information of foreign investment for further information and services of setting the company of foreign investment  please  contact  :
New nine dragons consulting.
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References :
1		The Laws of Republic of Indonesia  Number 25 Year 2005 about  Investment.
2.		The Regulation of Republic of Indonesia Number 83 Year 2001 about the adjustment of The Regulation of Republic of Indonesia number  20 year 1994 About the Share Ownership in the terms of Foreign Investment.
3.		The Regulation of Republic of Indonesia number  20 year 1994 About the Share Ownership in the terms of Foreign Investment.
4.		The Presidential Regulation Number 77 Year 2007 about The Closed List of Business Line and The Open List of Business Line with condition of Investment.