Indonesia’s Capital Investment Coordinating Board, the BKPM, issued Regulation No. 5 on Apr. 12, 2013, affecting guidelines and procedures for investment licensing in the country. The regulation has created new requirements for investment registration reinforcement and adding statutory strength to the BKPM’s previously informal policies. The most significant changes regard the new licences required for mergers and other financial procedures, the added obstacles in changing initial capital investment plans, and alterations to policies regarding company start-up and expansion, minimum investment and public companies.

Rather than deterring investors, the new regulations offer a comprehensive framework for foreign direct investment (FDI) growth in Indonesia. The Indonesian government recently announced that FDI rose 27 percent in the first quarter to a record high of nearly $7 billion. This consumer boom shows no signs of abating as the Boston Consulting Group predicts that the number of middle-class and affluent consumers in Indonesia would double to 141 million by 2020.

Find out more about the effects of Regulation No. 5 at the ALB Optimising your Indonesian Investment Strategy Masterclass on Aug. 22 in Singapore.

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