Indonesia lowers foreign ownership for cellular operators
Friday, 6 July 2007
JAKARTA, July 5 (AFP): Indonesia has lowered a limit on foreign ownership of cellular operators from 95 per cent to 65 per cent, as part of new restrictions aimed at protecting national security, an official said Thursday.
"The move follows a presidential regulation signed on July 3, 2007, regarding investment areas," an official at the trade ministry spokesman's office told the news agency.
The regulation covers an array of industries, he said, referring to a statement on the ministry's website quoting trade minister Mari Pangestu saying the move "prioritises national interest and the future of the nation." Fixed line telephone companies have a foreign ownership limit set at 49 per cent. Indonesia's fixed line business however is currently monopolised by state-owned Telekomunikasi Indonesia (Telkom).
Minister for the economy, Budiono, said in the statement that the new rules did not apply retroactively. They apply to newly established companies, or to those which are still seeking a license to operate from the government.
Pangestu told a press briefing Wednesday that under the new rules, foreign ownership in insurance companies would be cut from 99 per cent to 80 per cent and the pharmaceutical company limit would drop from 100 to 75 per cent.
The Jakarta Post quoted Pangestu as also saying that the list increases the number of closed sectors to 25 from 11 previously, while other sectors have become more open. It did not elaborate on how they had changed.
"The move follows a presidential regulation signed on July 3, 2007, regarding investment areas," an official at the trade ministry spokesman's office told the news agency.
The regulation covers an array of industries, he said, referring to a statement on the ministry's website quoting trade minister Mari Pangestu saying the move "prioritises national interest and the future of the nation." Fixed line telephone companies have a foreign ownership limit set at 49 per cent. Indonesia's fixed line business however is currently monopolised by state-owned Telekomunikasi Indonesia (Telkom).
Minister for the economy, Budiono, said in the statement that the new rules did not apply retroactively. They apply to newly established companies, or to those which are still seeking a license to operate from the government.
Pangestu told a press briefing Wednesday that under the new rules, foreign ownership in insurance companies would be cut from 99 per cent to 80 per cent and the pharmaceutical company limit would drop from 100 to 75 per cent.
The Jakarta Post quoted Pangestu as also saying that the list increases the number of closed sectors to 25 from 11 previously, while other sectors have become more open. It did not elaborate on how they had changed.