Indonesia: Government to Allow More Foreign Direct Investment in Geothermal Energy Sectors

Indonesia To Relax Foreign Investment Rules (Mondaq News Alerts)

(Courtesy CIA.gov)

As part of its 16th economic package, the Government of Indonesia (GOI) announced on 16 November 2018 that in order to attract further foreign investment, it intends to relax the restrictions on foreign direct investment (FDI) in certain business sectors.

There is no change in respect of geothermal power generation of up to 10 MW (maximum of 67 percent FDI) and testing and analysis of electrical installation of low/medium voltage power generation and utility installation (reserved for domestic investment).

Reportedly, 100 percent FDI will be allowed in 54 business sectors currently included in the 2016 negative list (2016 DNI) that up until now were closed or restricted for FDI including:

• Geothermal drilling services - 95 percent
• Geothermal operating and maintenance services - 90 percent
• Geothermal surveying services - 95 percent

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