JAKARTA May 2 Indonesia on Friday eased its
foreign investment regulations for several industries, including
pharmaceuticals, power plants and advertising, amid signs of
weakening investor appetite in Southeast Asia's biggest economy.
After months of delays, the cabinet secretary's office
issued the revised "negative investment list" of sectors in
which foreign investors are either barred or restricted. The
list, which has existed for decades, limits foreign involvement
in areas deemed sensitive.
Under the new policy, the government increased the maximum
foreign investment in pharmaceutical companies to 85 percent
from 75 percent, and in advertising agencies to 51 percent from
49 percent. The changes were effective from April 24, the
cabinet secretary's office said.
Foreign investment growth in Indonesia slowed sharply in the
first quarter, rising 9.8 percent year-on-year to 72 trillion
rupiah ($6.23 billion, the investment board said last month.
That was down from a 17.5 percent increase the previous
quarter and was the slowest growth since the second quarter of
(Reporting by Jakarta bureau; Writing by Randy Fabi; Editing by