100% Foreign Ownership Proposed for Hotels and Restaurants
The Investment Coordinating Board (BKPM) has received a proposal related to the guidelines of investments for hotels and restaurants, to become more open for foreign investors.
The reason behind that is the incoming foreign investors are hoped to increase the standard of hotels and restaurants in Indonesia. As the result, it will increase the movement of Indonesia's tourism.
Head of BKPM, Franky Sibarani, explained that foreign investment has been opened for the three-star hotels or above. However, for one and two-star hotels, the shares are limited to 51 percent for foreigners.
"The development of hotel and restaurant may support the idea of attracting tourists to Indonesia," explained Franky in his official statement in Jakarta, Wednesday (12/16/2015).
Franky added, the proposed ideas are to be discussed by taking into account the national interest, including the government's efforts to attract 12 million foreign tourists in 2016.
BKPM has received 454 proposals related to the revision of investment guidelines. Energy and Mineral Resources sector received 23 ideas, nine for forestry, nine for health, one for finance, eight for communication and information, as well as seven for the tourism and creative economy.
As for the public works there are nine ideas, four for education and culture, one for banking, 32 for trade, 36 for transportation, nine for industry, six for security and defense, 43 for agriculture, two for employment, as well as 16 for other sectors. The board expected new regulations on the Investment Guidelines to be completed in April 2016.