Basic:

1. • Foreign Investment means activities of capital investment for conduct of business in the territory of the Republic of Indonesia, which are implemented by FOREIGN CAPITAL INVESTOR, whether use the foreign capital entirely or use in form of a Joint Venture with Domestic Capital Investors.
   • Foreign Capital Investor means an individual foreign state citizen, foreign business entity, and/or foreign government which conduct capital investment in the territory of the Republic of Indonesia.
   • Capital means assets in form of money or other form other than money which are owned by a capital investor for conduct of business in the territory of the Republic of Indonesia.

Form of Business Entity:

1. • For Foreign Capital Investment (Foreign Investment) the form of business entity must in form of Limited Liability Companies (in Indonesia known as “PT”or Perseroan Terbatas).
   • The Limited Liability Companies are to be conducted with:
     • Subscription to a part of shares at the time of the LLC establishment;
     • Purchase of shares; and
     • Implementation of other methods in accordance with the current regulations of law. (Please note that the percentage of the capital share that owned by the Foreign Investor are basically different from one business sectors to another. Some business sectors may only contain about 50% Max of Capital Share from foreign investor.

Negative Investment List:

• • Basically, all business sectors are open for any capital investment activities, but however there are some business sectors which are declared to be closed or open subject to certain conditions, see Negative Investment List.
  • The business sectors, which are closed and open subject to certain conditions, are stipulated by Presidential Regulation composed in a list based on the Classification Standards.

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