Executive Luncheon: Review on the Negative Investment List 2016

Jakarta, 12 January 2016

Executive Luncheon: Review on the Negative Investment List 2016

Jakarta, January 12th, 2016. If there is another nationwide issue in the beginning of 2016 aside of the ASEAN Economic Community, that would be the review on the Negative List of Investment (Daftar Negatif Investasi—DNI). Since DNI impacts business mapping in national level, business communities, especially private sector, are waiting for the newest regulation under the coordination of the Indonesia Investment Coordinating Board (BKPM).

In response to this matter, Indonesia Services Dialogue (ISD) held the Executive Luncheon: Review on Amendment of the Negative List of Investment as Stipulated in Perpres No. 39/2014 to provide comprehensive scrutiny for its members and related stakeholders.

“DNI was revised in 2010 and 2014. The Government want to review it again this year. Following the maritime vision of President Jokowi-VP Kalla administration, review on DNI is a very strategic issue. There is an insufficiency of domestic business sectors’ capacities. Thus, we need to attract foreign investors to develop this sector. To discuss about DNI means to carefully identify what we need for national interest, not only limiting foreign investors to come,” cited Wahyuni Bahar, Founder of Bahar and Partners & ISD Board of Founders, in his welcoming remarks.

Moderated by Taufikkurahman, ISD Executive Director, the event aims to collect as many views as possible from private sector, regulatory agencies, foreign chambers, and business association. Two Speakers gives specific context before discussion session. They are Amalia Adininggar Widyasanti, Ph.D. (Director of Trade, Investment, and International Economic Cooperation, Bappenas) and Achmad Shauki, Ph.D. (Senior Economist in the area of Trade and Competitiveness, Australia Indonesia Partnership for Economic Governance).

According to Amalia, the Deregulation packages that are announced since the second semester of 2015 have brought significant impact to national investment climate.

“The revision process that took four years from 2010 to 2014 happened because that was very difficult to finalize the aspirations. In term of legal standing of the regulation, DNI could be revised once in two years. In 2016, revision process could work due to the progress in investment climate and procedural simplification through the Government’s deregulation packages,” said Amalia Adininggar Widyasanti.

Along with Amalia, Achmad Shauki, who gives presentation about insurance sector, also perceives 2016 as the right moment for the Government to renew DNI.

“2016 is the right moment for the Government to have a clear judgment about our national interest. As the result, the Government Regulation could be more practical,” mentioned Achmad Shauki.

“In terms of insurance sector, Indonesian insurance companies’ have the lowest asset amongst ASEAN. And of course, the number of premiums are relatively low. In the same time, the local companies have no free access to use credible foreign professional because of the complicated restriction. This issue should be considered by BKPM while reviewing DNI in insurance sector,” added him.

On another hand, David Christian, Economic Researcher from the Centre for Strategic and International Studies (CSIS), says that regulatory-impact assessment is needed to embrace all viewpoints, not only from the strongest and the most dominant business player. Besides that, he also emphasizes the importance of public transparency in the whole process.

“The main purpose of reviewing DNI is to increase national competitiveness, not necessarily making it more restrictive for new investment. The key to successful review is doing public hearing on which sector to open and which sector to close. BKPM should upload the final draft for public review before making it official,” suggested him.