Region
East Asia & Pacific
Income group
Lower middle income
Most populous city
Jakarta

ACCESS DATA BY
ECONOMY OR TOPIC


or

Disclaimer: Note that the following information is not part of the score that the country receives on the Investing Across Sectors indicators. This information is provided as complementary to the data on the foreign ownership restrictions, and is based on the survey respondents’ comments and assessments. The World Bank Group does not guarantee accuracy of this information.

Sector group:
Agriculture & forestry
Sector:
Forestry: A foreign company seeking to own a commercial forestry or logging operation.
Market structure:
 
Survey respondents' answer to the following question, "Define the market structure in your economy for this sector."
Competitive market, i.e. Many firms
Regulatory license:
 
Survey respondents' answer to the following question, "If a foreign company wanted to obtain a sector-specific regulatory license (or a concession contract) to open and operate a new business in that sector, how likely would the government be to issue such a license, provided that the foreign company meets all legal and regulatory requirements?"
Likely
Name of regulatory authority
(1) Indonesia Investment Coordinator Board, (2) Ministry of Forestry Republic of Indonesia
Additional comments:
Legislation: (1) Presidential Decree No.111 Year 2007

Commercial forestry in Indonesia is divided into:
1. Prohibited foreign equity ownership on commercial sector 2. Permitted Foreign equity ownership for commercial sector which requires:
a. Partnership
b. Foreign ownership equity not more than 25-45 percent and possession of special licenses.

Special note: wood utilization of natural forest is prohibited for foreign ownership.

There are foreign firms currently operating in this sector