President issues new negative investment list
Wednesday, May 7 2014 - 04:11 AM WIB
President Susilo Bambang Yudhoyono on April 23 signed Presidential Regulation No 39/2014 on the new negative investment lists including in the energy and mining sector.
According to the copy of the new regulation, business areas in the energy and mineral resources sector opened to foreign ownership are the following.
1. Oil and gas construction service: platform (maximum 75%); spherical tank (49% maximum); and underwater distribution pipe installation (maximum 49%).
2. Survey service: Oil and gas (maximum 49%), geology and geophysics (maximum 49%); and geothermal (maximum 95%).
3. Drilling service: Oil and gas offshore (maximum 75%); geothermal (maximum 95%).
4. Geothermal maintenance and operation service (maximum 90%).
5. Power plant: Small scale (1-10 MW) foreign investment allowed up to 49%. For capacity more than 10MW, maximum foreign investment set at 95%.
6. Electricity transmission, foreign investment allowed up to 95%.
7. Electricity distribution, foreign investment allowed up to 95%.
8. Consultation in the field of electricity installation, maximum foreign ownership 95%.
9. Electricity supply installation, maximum foreign ownership 95%.
10. Operation and maintenance of electricity installation, maximum foreign ownership set at 95%.
Meanwhile, business areas in the energy and mineral resources sector that must be 100 percent domestic ownership are as follows.
1. Onshore oil and gas upstream installations.
2. Onshore pipe distribution installations.
3. Vertical/horizontal tanks.
4. Onshore oil and gas storage and marketing installations.
5. Onshore oil and gas drilling service.
6. Well operation and maintenance service
7. Oil and gas engineering and design service
8. Technical inspection service
9. Power plant less than 1MW capacity
10. Construction and installation of electricity facilities
11. Testing and inspection of electricity installation facilities.
Partnership scheme for biomass pellet industry for energy is allowed.
Editing by Reiner Simanjuntak