PRESIDENTIAL REGULATION
No. 77/2007

CONCERNING
LISTS OF CLOSED AND CONDITIONALLY OPENED BUSINESS LINES IN THE INVESTMENT SECTOR

BY THE GRACE OF ALMIGHTY GOD,
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

That in order to implement the provisions of Article 12 paragraph (4) and Article 13 paragraph (1) of Law No. 25/2007 concerning Capital Investments, it is necessary to stipulate a presidential regulation on lists of closed and conditionally opened business lines in the investment sector;

In view of:

• 1. Article 4 paragraph (1) of the Constitution of 1945;
• 2. Law No. 25/1992 concerning Cooperative (Statute Book of 1992 No. 116, Supplement to Statute Book No. 3502);
• 3. Law No. 9/1995 concerning Small-scale Business (Statute Book of 1995 No. 74, Supplement to Statute Book No. 3611);
• 4. Law No. 32/2004 concerning Regional Administration (Statute Book of 2004 No. 125, Supplement to Statute Boook No. 4437);
• 5. Law No. 25/2007 concerning Capital Investments (Statute Book of 2007 No. 67, Supplement to Statute Book No. 4724);
• 6. Government Regulation No. 44/1997 concerning Partnership (Statute Book of 1997 No. 91, Supplement to Statute Book No. 3718);
• 7. Government Regulation No. 32/1998 concerning Fostering and Development of Small-scale Business (Statute Book of 1998 No. 46, Supplement to Statute Book No. 3743);
• 8. Presidential Regulation No. 76/2007 concerning Criteria and Requirements for Formulation of Closed and Conditionally Opened Business Lines in the Investment Sector;

HAS DECIDED:

To stipulate:

THE PRESIDENTIAL REGULATION ON LISTS OF CLOSED AND CONDITIONALLY OPENED BUSINESS LINES IN THE INVESTMENT SECTOR

Article 1

(1) Closed business lines constitute specified business lines which cannot be exploited as investment activity.

(2) The list of the closed business lines as meant in paragraph (1) is as contained in Attachment I to this presidential regulation.

Article 2

(1) Conditionally opened business lines are business lines which can be exploited as investment activities under specified requirements, namely business lines reserved for micro, small-and medium-scale businesses and cooperatives (UMKMK), business lines where partnership is required, business lines wherein capital ownership is required, business lines wherein certain locations are required and business lines wherein special license is required.

(2) The list of the conditionally opened business lines as intended in paragraph (1) is as contained in Attachment II to this presidential regulation.

(3) The requirements constitute requirements for the establishment of business entities in the form of Indonesian statutory bodies by investors (especially for foreign investments before conducting investment activity in Indonesia).

Article 3

(1) The presidential regulation come into effect for 3 (three) years as from the date of promulgation or if necessary, can be reviewed in accordance with the need and developments of situation stipulated by a presidential regulation.

(2) In the case of the 3 (three) year period elapsing and the new lists of closed and conditionally opened business lines being not yet stipulated, the presidential regulation ruling the lists of closed and conditionally opened business lines remain effective.

Article 4

The government is obliged to publish the lists of the closed and conditionally opened business lines transparently in the public area, be it printed or electronic publication accessible from website of the Indonesian government.

Article 5

Following the stipulation of the presidential regulation:

• a. The provisions as meant in Article 2 of this presidential regulation do not apply to investments already approved before the presidential regulation comes into force. The investments as intended in paragraph (1) must be proven by investment approval and amendment (if any), which is issued by the authorized institution.
• b. The provisions in this presidential regulation apply fully to every change in investments as have already been approved in investment approval and amendments (excluding change in composition of shareholders in the content of the maximum percentage of foreign and domestic share ownership already approved), which are executed by the investors as intended in paragraph (1) or investment companies which had already existed on or before the presidential regulation comes into force.

Article 6

The provisions in this presidential regulation do not reduce the obligation of investors to abide by the provisions and requirements in force for the investment activities to undertake business activities, which are issued by technical authorized institutions overseeing business lines of the investments.

Article 7

With the enforcement of this presidential regulation:

• 1. Presidential Decree No. 96/2000 as has already been amended by Presidential Decree No. 118/2000 on Business Lines Closed and Conditionally Opened for Investments;
• 2. Presidential Decree No. 127/2001 on Fields/Kinds of Businesses Reserved for Small-scale Businesses and Fields/Kinds of Businesses Opened for Medium or Large-scale Businesses under Partnership, are declared null and void.

Article 8

The presidential regulation comes into force as from the date of stipulation.

Stipulated in Jakarta
On July 3, 2007
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Signed
DR. H. SUSILO BAMBANG YUDHOYONO