Govt. Addresses Transfers of Shares by Foreign Investors in Relation to the Utilization of Small Islands

With the ultimate aim of achieving a more equal distribution of economic growth and investments across Indonesia, the Indonesian Government has issued Regulation of the President No. 34 of 2019 on Transfers of Shares and Areas for the Utilization of Small Islands and Surrounding Waters in Relation to Foreign Investments (“Regulation 34/2019”).[1]

In pursuit of the abovementioned objective, Regulation 34/2019 sets out a number of provisions which address the issue of investments in small islands and their surrounding waters, specifically as they relate to the following matters: