Investment-Specific Measures

• In October 2012, Indonesia launched the Online Tracking System for investment licensing, enabling investors across the world to determine the status of their investment application through the BKPM web portal, http://www.bkpm.go.id.  Through this system, investors can access online the status of the following types of licenses: Registration, Principle License, Approval for Machinery, Goods and Material Import Facilities, and Business License.

• On 25 May 2010, Presidential Regulation 36/2010 was issued setting out the extent of foreign invests in specific industries in Indonesia. The regulation enabled business fields to be more open to include construction services, film technical services, hospital and health care, and small-scale electric power plants.

• New obligation for companies in the mining sector to sell a certain share of their production in domestic market.

• On 30 December 2010, Government Regulation (PP) no. 94/2010 on Calculation of Non Taxable Income and Payment of Income Tax in Current Year was issued. The PP gives discretion to Minister of Finance to be able to provide a tax holiday incentive to new investors in certain industries and locations.

Investment-Related Measures

• In June 2011, Bank Indonesia introduced measures to slow down short-term capital flows. These measures include (i) one-month minimum holding period on Sertificat Bank Indonesia (SBIs) with effect from 7 July 2010; and (ii) regulation on bank’s net foreign exchange positions.