The Head of Capital Investment Coordinating Board (‘BKPM’) has indicated that telecommunication tower construction will be opened as an investment sector for foreign participation as a result of the upcoming revision to the ‘Negative Investment List’ - which regulates closed and conditionally-open investment sectors.
One reason is certainly that development of the telecommunication industry, including tower construction, requires substantial infrastructure investment each year - in the area of 7 to 8 billion USD. Given that the domestic investment alone is unable to meet that amount, it follows that foreign investment participation is being sought for the telecommunication infrastructure development (i.e., tower construction).
Although the field of telecommunication tower construction had not been closed to foreign investment by Presidential Regulation No. 77 of 2007 on the Negative Investment List (as amended by Presidential Regulation No. 111 of 2007), it was closed by Article 5 of Minister of Communication and Information Regulation No. 02/PER/M.KOMINFO/3/2008 on Guidelines for Construction and Utilization of Joint Telecommunication Towers.
Any move to re-open the telecommunication infrastructure development sector would ostensibly require the Minister of Communication and Information to revoke the previous regulation first. Although that would automatically open the sector again, it will be explicitly specified by the revision to the Negative Investment List, the final draft of which is expected to be submitted to the President this month.
Other sectors that are expected to be opened by the upcoming Negative Investment List revision will be health, education, agriculture, and creative industry. For related reading, see: ILB No. 1285 21/1/2010 on Extent of Foreign Ownership in Private Hospitals to be Increased, and ILB No. 1318 16/2/2010 Revision of Foreign Investment in Retail Business Possible.
This ILB is not based on a legal document, but on research conducted by the hukumonline team.
The Head of Capital Investment Coordinating Board (‘BKPM’) has indicated that telecommunication tower construction will be opened as an investment sector for foreign participation as a result of the upcoming revision to the ‘Negative Investment List’ - which regulates closed and conditionally-open investment sectors.
One reason is certainly that development of the telecommunication industry, including tower construction, requires substantial infrastructure investment each year - in the area of 7 to 8 billion USD. Given that the domestic investment alone is unable to meet that amount, it follows that foreign investment participation is being sought for the telecommunication infrastructure development (i.e., tower construction).
Although the field of telecommunication tower construction had not been closed to foreign investment by Presidential Regulation No. 77 of 2007 on the Negative Investment List (as amended by Presidential Regulation No. 111 of 2007), it was closed by Article 5 of Minister of Communication and Information Regulation No. 02/PER/M.KOMINFO/3/2008 on Guidelines for Construction and Utilization of Joint Telecommunication Towers.
Any move to re-open the telecommunication infrastructure development sector would ostensibly require the Minister of Communication and Information to revoke the previous regulation first. Although that would automatically open the sector again, it will be explicitly specified by the revision to the Negative Investment List, the final draft of which is expected to be submitted to the President this month.
Other sectors that are expected to be opened by the upcoming Negative Investment List revision will be health, education, agriculture, and creative industry. For related reading, see: ILB No. 1285 21/1/2010 on Extent of Foreign Ownership in Private Hospitals to be Increased, and ILB No. 1318 16/2/2010 Revision of Foreign Investment in Retail Business Possible.
This ILB is not based on a legal document, but on research conducted by the hukumonline team.
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