Indonesia has unveiled a plan to bring about a big bang in
its semi-closed economy, as the county’s new
leadership seeks to rev up its deregulation drive and put its
protectionist history behind it.
Last Thursday the Widodo administration announced its
decision to remove 35 business lines from its Negative
Investment List (DNI), which shows sectors that are closed or
conditionally open to foreign direct investment (FDI).
But local counsel say the push for deregulation has fallen
short of a big bang effect, labelling it a positive development
that remains far from the desired target.
"What I see is that this is not liberalisation and is
instead a process that the government is taking to allow more
foreign investment to come to Indonesia," said
Harun Reksodiputro, partner at Ginting & Reksodiputro
Reksodiputro adds that the two main reasons behind the
concurrent lifting and imposition of caps...