BKPM proposes UMKM to be open for foreign investment
The government is currently focusing on revising Presidential Decree No. 39/2014 about Negative Investment List. The Investment Coordinating Board (BKPM) proposes retail sector to be more open for foreign investment.
BKPM eyes minimarket, supermarket and department store. “Those three are currently closed for foreign investors,” said BKPM chief Franky Sibarani on Monday, January 18.
The presidential decree closes the opportunities for foreign investment, while capital import can enter minimarket with building area of more than 400 square meters, supermarket of more than 1,200 square meters and department store of more than 2,000 square meters.
Franky proposed that foreign investors may own shares around 37 percent, but this proposal has not been discussed further. “The point is, we are still monitoring domestic interests and possibility to increase capacity,” he said.
Industry Minister Saleh Husin is reluctant toward the revision. However, he could not do much as other ministries and agencies from other countries propose to open opportunities for foreign investors.
Saleh said there will be at least an assurance for micro, small and medium industries that they will be safe despite influx of foreign investors. UMKM is protected by the government,” he said