4. Foreign Capital Ownership Limitation
Pharmaceutical Industrial Business: Raw Material Medicine Industry, Patent Medicine Industry, with maximum foreign equity ownership of 75% (ISIC 2423)
5. Partnership (17) with Micro, Small and Medium Sized Enterprises and Cooperatives (18)
Sweetening and saline fruits and vegetable industry (ISIC 1513)
Printed Batik industry ( ISIC 1712)
Rattan processing and preserving industry, bamboo and the like ( ISIC 2010)
Mangrove wood industry:
- Moulding and construction material component industry (ISIC 2022)
- Carving handicrafts industry made of wood industry except furniture, Kitchen ware industry ( ISIC 2029)
Essential Oil Industry ( ISIC 2429)
Construction materials:
- Brick and clay/ceramic industry, other goods made of clay/ceramic industry (ISIC 2691; ISIC 2693)
Goods made from cement industry (ISIC 2695)
Industries of lime and products made of lime (ISIC 2694)
Manufacture of Jewelry and related articles (ISIC 3691)
Wooden ship industry including tools and equipments for maritime tourism and fishing (ISIC 3511)
Agricultural machinery industry using medium technology such as rice peeler, corn peeler and handy-tractor (ISIC 2921)
Industries of multi-various handicrafts:
1. Handicrafts using plants as raw materials.
2. Handicrafts using animals as raw materials.
3. Imitation flowers and decorations.
4. Imitation jewelry (ISIC 3699).
5. Handicrafts from mollusk and the like.
6. Handicrafts made of precious stone and marble.
Non-metal waste recycle (ISIC 3720)
Nails, nuts and bolts industry, component and spare parts to start up motor industry, pumps and compressor industry, component and two and three wheels vehicles accessories industry, bike and becak accesories industry ( ISIC 2899, 2911, 2912, 3591, 3592)
Milk powder process and condensed milk industry ( ISIC 1520)
Fishery Processing Business (Usaha Pengolahan Hasil Perikanan - UPI): Fermentation, Reduction/Chemical Process, Surimi and Jelly Fish Process (ISIC 1512)
6. Special Permit from Relevant Ministerial/ Government Agencies (applies to both local and foreign investors)
Special Printing Industry/Security documents such as stamp, stamp duty, valuable paper such as Bank Note Paper, Cheque Paper, Watermark paper, passport, demography document and hologram, Money Printing Industry. Special permit is required from the Minister of Industry and from the National Intelligence Agency (ISIC 2221)
Special Ink Industry. Special permit is required from the Minister of Industry and the National Intelligence Agency (ISIC 2429)
Pulp Industry (from wood). The raw material should be sourced from industrial plantation forests and special permit is required from the Minister of Industry (ISIC 2101)
Cigarette Industries
These industries are closed for new investors (both local and foreign). Any expansion of the existing investment requires a special permit from the Minister of Industry.
- Clove Cigarette Industry (ISIC 1600)
- Regular Cigarette Industry (ISIC 1600)
- Other Cigarette Industries (ISIC 1600)
Lead Smelting Industry. A special permit is required from the Minister of Environment and the Minister of Industry (ISIC 2720)
Narcotics for Pharmaceutical Industry (Pharmaceutical Industry) A special permit is required from the Minister of Health (ISIC 2423)
Saw Mill Industry with production/output capacity above 2000M*% Year. A special permit is required from the Minister of Forestry (ISIC 2010)
Veneer Industry, Plywood industry, Laminated Veneer Lumber (LVL) Industry. A special permit is required from the Minister of Forestry (ISIC 2021)
Wood chip industry and Wood Pellet Industry. A special permit is required from the Minister of Forestry (ISIC 2029) Cyclamate and Saccharin Industry. A special permit is required from the Food and Drug Administration (FDA) and the Minister of Trade [(ISIC 2411)
Lubricating oil industry with special permits from Minister of Energy & Mineral Resources and Minister of Industry (ISIC 2320)
Services Incidental to Manufacturing
1. Industries Closed to Both National and Foreign Investors
Manufacture of food and beverages on a fee or contract basis (CPC 88411)
- Fruits and vegetables canning industry
- Fruits and vegetables pulverizing, juicing and pasting industry
- Ice cream industry
- Cassava starch industry
2. Industries Closed to Foreign Investors
Manufacture of food and beverages on a fee or contract basis (CPC 88411)
- Meat processing and preserving industry
- Fish and the like canning industry
- Cold storage for fish industry and the like
- Margarine industry
- Cooking oil industry
- Milk industry
- Industry of food from milk
- Palm starch industry
- Feed/fishmeal industry
- Feed/fishmeal concentrate industry
- Macaroni, noodle, spaghetti, rice noodle industry and the like
- Tea and coffee processing industry
- Spice, food flavor and food enhancer industry
- Syrup industry
- Other sugar industry other than syrup industry
- Soft drink industry
Manufacture of tobacco on a fee or contract basis: (CPC 88412)
- Kretek (clove) cigarette industry
- White cigarette industry
- Other cigarette industry
- Other products of tobacco
Manufacture of leather products on a fee or contract basis (CPC 88423)
- Leather preserving industry
- Leather tanning industry
Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and planting materials, on a fee or contract basis (CPC 88430)
- Saw mill industry, including kiln drying
- Plywood industry
- Laminated plywood industry, including decorative plywood
- Molding and building components industry, including kiln drying
Manufacture of chemicals and chemicals products, on a fee or contract basis (CPC 88460)
- Formulated pesticide industry
Manufacture of furniture on a fee or contract basis (88491)
- Wood furniture industry, including finishing and designing Rattan and bamboo furniture industry, including finishing and designing
Source of Measure:
- Law No. 25 of 2007 Concerning Investment
- Presidential Regulation of The Republic of Indonesia No. 36 of 2010 on List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment
- Presidential Decree No. 21 of 2001 concerning Lubricant Supply and Services
- Government Policy
18.
Sector : Agriculture Services Incidental to Agriculture
Sub-Sector
Industry Classification : ISIC (see below) CPC (see below)
Level of Government : Central
Type of Obligation : National Treatment
Description of Measure : Certain restrictions/requirements which may be inconsistent with National Treatment may be imposed to foreign investors on the establishment of the following line of businesses in Indonesia :
Agriculture
1. Closed to Foreign Investors
« For each individual crop cultivation in an area less than or equal to 25 hectares:
- Main food crops are corn, soy, peanuts, green beans, rice, cassava, sweet potato; other food crops are wheat, oats, barley, rye, millet, taro, and other food crops not classified elsewhere (ISIC 0111, 0112).
« For each individual crop cultivation in an area less than 25 hectares:
- Estate crops as follows:
> Sugar cane and other sweetening plant cultivation, tobacco plantation, rubber and other producing latex plantations, cotton plantation, textile raw material crop plantation, Medicinal/pharmaceutical crop plantation, essential oil crop plantation, and other crop plantation that is not classified in other location (ISIC 0111, 0112)
> Coconut plantation, palm plantation, beverage material crop plantation (tea, coffee, and cocoa), cashew plantation, peppercorn plantation, clove plantation, and other spices crop plantation (ISIC 0113)
- Breeding and propagation of the following:
> Jatropha curcas plantation, sugar cane and other sweetening plants, tobacco plant, rubber and other latex producing plants, textile raw material plant, medical/pharmaceutical plant, cotton plant, essential oil plant, and other plants that are not classified in other location (ISIC 0111, 0112)
> Coconut plant, palm plant, plants for beverage material (tea, coffee, and cocoa), cashew plant, peppercorn plant, clove plantation, and other spices plant (ISIC 0113)
- Breeding and Propagation of Forest plants (ISIC 0111, 0200)
« Pig breeding and farming in a quantity less than or equal to 125 heads, native chicken ("ayam buras") and its cross-breeding and farming (ISIC 0122)
« Plantation processing product business industry below certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007:
- Dry Clove Flower Industry (ISIC 0140)
« Capturing and Propagating Wildlife from natural Habitat except reptiles (snake, lizard, turtle, soft shell turtle and crocodile) (ISIC 0150)
2. Special Permit from Relevant Ministerial/Government Agencies and Foreign Capital Ownership Limitation
Cultivation of Agricultural Germ Plasm, including food crops, horticulture, plantation, livestock (maximum foreign capital ownership 49%) with special permit from the Minister of Agriculture (ISIC 0111, 0112, 0113, 0121, 0122)
Cultivation and Processing of Genetically Modified Organism (GMO) Products (maximum foreign capital ownership 49%) with special permit from the Minister of Agriculture (ISIC 0111, 0112, 0113, 0121, 0122)
For each individual crop cultivation in an area of more than 25 hectares with special permit from the Minister of Agriculture:
- Main food crops are corn, soy, peanuts, green beans, rice, cassava, sweet potato (maximum foreign capital ownership 49%) (ISIC 0111, 0112)
- Other food crops are wheat, oats, barley, rye, millet, taro, and other food crops not classified elsewhere (maximum foreign capital ownership 95%) (ISIC 0111, 0112).
For each individual crop culturing medium/nursery business with special permit from the Minister of Agriculture:
- Main food crops are corn, soy, peanuts, green beans, rice, cassava, sweet potato (maximum foreign capital ownership 49%) (ISIC 0111, 0112)
- Other food crops are wheat, oats, barley, rye, millet, taro, and other food crops not classified elsewhere (maximum foreign capital ownership 95%) (ISIC 0111, 0112).
Estate Crops Plantation with an area equal to or more than 25 Hectares until a certain area stipulated in Regulation of Minister of Agriculture Number 26 of 2007, is subject to a maximum foreign capital ownership 95% and a special permit from the Minister of Agriculture :
a. Without an integrated processing unit
> Jatropha Curcas Plantation, Sugar cane and other sweetening plants, Tobacco plantation, Rubber and other latex producing plantation, raw material Textile Crop plantation, Cotton Plantation, Medicinal/pharmaceutical Crop plantation, Essential oil Crop Plantation, Other Crop plantations that are not classified in other locations (ISIC 0111, 0112)
> Coconut plantation, Palm plantation, Crop Plantation for Beverage material (Tea, Coffee, and Cacao), Cashew plantation, Peppercorn plantation, Clove plantation, Other spices Crop plantations (ISIC 0113)
b. With an integrated processing unit with an input capacity equal to or more than a certain capacity as stipulated in Regulation of Minister of Agriculture Number 26 of 2007
> Clove plantation and dry flower clove industry (ISIC 0113 & 0140),
> Cotton plantation and cotton fiber and seed industry (ISIC 0111 & 1514, 1711),
> Cashew plantation and cashew seed industry and Cashew Nut Shell Liquid (CNSL) (ISIC 0113 & 1531),
> Peppercorn plantation and dry white peppercorn and dry black peppercorn industry (ISIC 0112 & 1531, 1549),
> Jatropha Plantation and Jatropha Curcas Oil Industry (ISIC 0111 & 2429),
> Sugar cane plantation, sugar industry, sugar cane, and sugar cane residue (ISIC 0111 & 1542),
> Tobacco plantation and dry tobacco leaves industry (ISIC 0111 & 1600),
> Coconut Plantation and coconut oil industry (ISIC 0113 & 1514),
>Coconut Plantation and Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry (ISIC 0113, 1514 & 1549),
> Palm Plantation and palm oil industry (CPO) (ISIC 0113 & 1514),
> Cacao Plantation and cleaning, peeling and drying industry (ISIC 0113 & 0140, 1543),
> Tea plantation and black/green tea industry (ISIC 011381549),
> Essential oil Crop Plantation and Essential Oil industry (ISIC 0111, 0112, 0113 & 2429),
> Coffee Plantation and Coffee sorting, cleaning and peeling industry (ISIC 0113 & 0140, 1549),
> Rubber plantation and sheet, thick latex industry and crumb rubber industry (ISIC 0111 & 2519),
> Seed plantation other than Coffee and Cacao and Seeds other than Coffee and Cacao cleaning and peeling industry (ISIC 0111, 0112, 0113 & 0140, 1531)
Estate crops plantation with an area more than a certain area related as stipulated in the Regulation of Minister of Agriculture Number 26 of 2007, is required to have an integrated processing unit with an input capacity equal to or more than a certain capacity as stipulated in Regulation of Minister of Agriculture Number 26 of 2007, and is subject to maximum foreign capital ownership 95% and a special permit from the Minister of Agriculture:
Clove plantation and dry flower clove industry (ISIC 0113 & 0140),
Cotton plantation and cotton fiber and seed industry (ISIC 0111 & 1514, 1711),
Cashew plantation and cashew seed industry and Cashew Nut Shell Liquid (CNSL) (ISIC 0113 & 1531), Peppercorn plantation and dry white peppercorn and dry black peppercorn industry (ISIC 0112 & 1531, 1549),
Jatropha Plantation and Jatropha Curcas Oil Industry (ISIC 0111 & 2429),