BKPM considers to Open Up Armored Transport Services to Foreign Firms
The Indonesian government is considering allowing foreign investors to own majority stakes in armored transportation service companies in the country. The plan is part of the government's effort to revise its so-called negative investment list, which caps foreign ownership in certain business deemed of strategic importance to the domestic economy or security.
Under current rules, foreigners can own up to 49 percent in armored-car businesses, which typically cater to banks and other financial services firms. "Considering that some banks can be controlled by foreigners, there is a suggestion to allow them to have a majority stake in security service businesses as well," Franky Sibarani, the chairman of the Investment Coordinating Board, or BKPM, said in a statement over the weekend.
Ten foreign banks, including Citibank, Deutsche Bank and Standard Chartered, operate their own branches in Indonesia, with 15 others have established joint venture with local lenders. Franky said the BKPM would discuss the latest plan with the police, Bank Indonesia and the Financial Services Authority (OJK), who all play a regulatory role in the armored-car business. The BKPM aims to complete its revision of the negative investment list by April next year.